What is the refund for overbooking flights?

Denied Boarding: Understanding Your Rights and the Overbooking Refund

Flight overbooking is a frustrating reality of air travel. Airlines often sell more tickets than available seats, anticipating a certain percentage of no-shows. While this practice generally works smoothly, it can lead to passengers being “bumped” – denied boarding despite having a confirmed reservation. Understanding your rights in these situations is crucial, particularly regarding compensation for involuntary denied boarding.

In the United States, the Department of Transportation (DOT) has established regulations to protect passengers from the inconvenience of overbooking. These regulations mandate compensation for passengers who are involuntarily denied boarding and aren’t rebooked on a flight reaching their final destination within a specific timeframe.

The amount of compensation depends on how quickly the airline can get you to your final destination compared to your original arrival time. If the airline can get you to your destination within one hour of your original arrival time, you are not entitled to compensation. However, if the delay is longer, compensation is required and is calculated based on the one-way fare to your final destination, excluding any taxes and fees:

• Arrival 1-2 hours later (domestic flights) or 1-4 hours later (international flights): You are entitled to 200% of the one-way fare, capped at $775.
• Arrival more than 2 hours later (domestic flights) or more than 4 hours later (international flights): You are entitled to 400% of the one-way fare, capped at $1,550.

It’s important to note that this $1,550 cap increased on August 9, 2023. Before that date, the cap was $1,350.

Beyond the fare compensation, you’re also entitled to a refund for any ancillary fees paid for the flight you missed, such as checked baggage fees, seat selection fees, or in-flight Wi-Fi purchases. This ensures that you’re not out of pocket for services you didn’t receive due to the airline’s overbooking practices.

Importantly, these regulations apply specifically to involuntary denied boarding. If you volunteer to give up your seat in exchange for travel vouchers or other incentives, the terms of compensation are determined by the airline and not the DOT regulations.

While airlines often seek volunteers before involuntarily denying boarding, remember that you are not obligated to give up your seat. Know your rights and don’t hesitate to ask questions if you find yourself in an overbooking situation. Keeping yourself informed is the best way to navigate the complexities of air travel and ensure you receive the compensation you deserve. For the most up-to-date information, consult the DOT’s website directly.