Airport Overbooking And Denied Boarding
To maximize their yields and to compensate for "no shows," all airlines overbook. It's a fact of life for travelers -- and, at this time, it's completely legal.
Sometimes, overbooking means that passengers will be "bumped" (prevented from boarding or remaining on a flight), even though they bought confirmed tickets for that flight weeks or months in advance.
The U.S. Department of Transportation requires airlines to ask for volunteers in exchange for some type of compensation (generally, travel vouchers or money). If you volunteer to give up your seat on an overbooked flight, the airline determines how much you will be paid (and, in the case of travel vouchers, any restrictions on using the vouchers). Also, the airline will schedule you on the next flight where space is available (not necessarily the very next flight!). If this is not acceptable, the airline will generally book you on another carrier at no cost to you. The airline cannot deny you boarding on a later flight, unless you are told about this possibility at the time you volunteer.
If there are not enough volunteers willing to give up their seats, then the airline will board passengers according to its boarding priorities (see "The Bumping Game" in the Airline section of this site for details). In other words, if you are traveling in coach, you were the last passenger to check in at the ticket counter, and a first class passenger needs a seat, you will probably be required to give up your seat for that passenger. If you are involuntarily "bumped," the airline must confirm you on the next flight on which space is avaiable, regardless of the class of service. If that flight is not acceptable, the airline must confirm you on another carrier. In addition, the airline must reimburse you as follows:
If the alternate flight will arrive at your stopover or destination within one hour of your originally scheduled arrival time -- $0
Within two hours -- 100% of the value of your flight coupon for that segment of your trip, to a maximum of US$200
Longer than two hours -- 200% of the value of your flight coupon for that segment of your trip, to a maximum of US$400
The airlines are not responsible for compensating passengers who are denied boarding due to late check-ins or due to the substitution of a smaller plane for operating or safety reasons.
Also, the airlines may set any restrictions on travel vouchers offered for "bumped" passengers, so check the restrictions at that time and try to negotiate a voucher with no restrictions.
These rules do not apply to charter flights or to flights on planes carrying 60 or fewer passengers. Also, they do not apply to international flights inbound to the USA.