Airlines Overbook, Passengers Get Bumped: What's The Law?

can airlines really do that bumping and the law bloomberg

In 2017, a man was forcibly removed from a United Airlines flight, dragged down the aisle, and suffered a concussion, a broken nose, and damaged teeth. This incident, which went viral on social media, raised questions about the legality of airlines bumping passengers from their flights. Bumping, or denied boarding, is a legal practice used by airlines to compensate for no-shows and maximise revenue. While it is legal, there are conditions and exceptions to the practice. Airlines must first seek volunteers to give up their seats in exchange for compensation and cannot subject passengers to any unjust or unreasonable prejudice or disadvantage based on race or ethnicity. If there are not enough volunteers, airlines may bump passengers involuntarily, but they must provide compensation and a written statement of passengers' rights.

Characteristics Values
Legality of bumping Legal
Reasons for bumping Overbooking, aircraft change, weight restrictions, maintenance issues, employee travel
Compensation Cash, flight credits, vouchers, free tickets, rebooking
Bumping criteria Check-in time, fare paid, frequent flyer status
Rights of bumped passengers Written statement of rights, reasons for bumping, compensation
Involuntary bumping rate 44 per million passengers (Apr-Jun 2017)
Voluntary bumping rate 531 per million passengers (Q2 2017)

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Bumping, or denied boarding, is a legal and common practice by airlines to compensate for no-shows and maximise revenue. While it is not illegal, it can be inconvenient and frustrating for passengers. The practice involves airlines overselling flights to ensure that planes are full, especially during times of weather and operational chaos. While some airlines sell enough tickets to fill every seat, others oversell to a certain extent, and occasionally, passengers are bumped as a result.

When a flight is overbooked, airlines must first seek volunteers to give up their seats in exchange for compensation. This is known as a "voluntary" bump, and there is no limit to the amount of money or vouchers that airlines can offer. Passengers can negotiate with the airline and sell their seats back. However, if there are not enough volunteers, the airline may involuntarily bump passengers. This usually occurs before boarding, and passengers who have been bumped are entitled to compensation and a written statement of their rights.

Airlines determine their own fair boarding priorities when bumping passengers involuntarily. Criteria such as check-in time, fare paid, or frequent flyer status may be considered, as long as they do not subject passengers to any unjust or unreasonable prejudice or disadvantage. For example, an airline cannot lawfully use a passenger's race or ethnicity as a criterion. Passengers who are bumped involuntarily are still entitled to compensation, and the amount is decided by the airline. While there is no limit to the amount, airlines must follow the guidelines set by the Department of Transportation (DOT).

Bumping is a common practice, and data from the DOT shows that the number of involuntary bumpings has decreased in recent years. For example, American Airlines and Frontier Airlines involuntarily bumped over 10,000 passengers each in 2023. However, the rate of bumpings per million passengers has decreased, with 44 per million from April to June 2017, down from 62 per million in the same period the previous year. Airlines have also increased the compensation offered to bumped passengers and made policy changes to avoid bad publicity and legal issues.

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Passengers have rights

Bumping, or denied boarding, occurs when there are more passengers scheduled to fly than there are seats available. While it is a legal practice, passengers do have rights in this situation.

Firstly, airlines must first ask for passengers to volunteer to give up their seats in exchange for compensation. There is no limit to the amount of money or vouchers that an airline can offer, and passengers are free to negotiate. If an airline offers a voucher, they must inform passengers of any restrictions that may apply. If not enough people volunteer, the airline will then bump passengers involuntarily.

Passengers who are involuntarily bumped are entitled to compensation and a written statement of their rights and how the airline selects who gets bumped. This compensation is usually in the form of cash, flight credits, or vouchers, and there is no limit to the amount of money an airline must give. Passengers are also entitled to be rebooked, usually on a later flight, and this may be with another carrier.

Passengers cannot be removed from an aircraft after boarding unless for safety, security, or health reasons, or if they are being disorderly. Airlines cannot subject passengers to any unjust or unreasonable prejudice or disadvantage when determining who to bump. For example, an airline could not lawfully use a passenger's race or ethnicity as a criterion.

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Airlines determine boarding priorities

While bumping is not illegal, airlines are responsible for determining their own fair boarding priorities. If there are not enough passengers who are willing to give up their seats, an airline may deny boarding based on criteria that it establishes. Factors such as the passenger's check-in time, the fare paid, or the passenger's frequent flyer status come into play. However, these criteria cannot subject a passenger to any unjust or unreasonable prejudice or disadvantage. For example, an airline cannot lawfully use a passenger's race or ethnicity as a criterion.

Airlines are required to give passengers who are bumped involuntarily a written statement describing their rights and explaining how the carrier decides who gets bumped. This statement must be provided to all passengers who are denied boarding, regardless of whether they are at the airport ticket counter or the boarding gate. Passengers who are denied boarding involuntarily due to oversales are entitled to compensation based on the ticket price, the delay in reaching their destination, and whether the flight is domestic or international.

In addition to providing a written statement, airlines must also orally advise passengers of their rights and any restrictions or conditions applicable to the denied boarding compensation. Passengers have the right to choose to receive a check or cash as compensation, and airlines may offer more than the required minimum amount. If the airline provides substitute transportation that leaves before they can pay the passenger, they must pay within 24 hours of the bumping incident.

It is important to note that there are exceptions to the rules. For example, passengers must meet the required check-in times, and no compensation is needed in such cases. Additionally, passengers should be aware of the airline's "boarding priority" rules, which specify the order in which passengers will be bumped if there are not enough volunteers.

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Compensation varies

While the business practice of bumping is not illegal, passengers who are bumped from a flight are often entitled to compensation. The amount of compensation varies depending on the length of the delay caused by the bump and whether the flight is domestic or international. The Department of Transportation (DOT) mandates that compensation must be offered, but it does not dictate the amount or form of compensation, which is left to the discretion of the airline. Cash, flight credits, or vouchers are the most common forms of compensation offered.

The DOT has established guidelines for involuntary bumping, requiring airlines to provide passengers with a written statement outlining their rights and explaining how the carrier decides who gets on an oversold flight and who doesn't. The minimum compensation amount is determined by the price of the traveler's ticket and the length of the delay. If the substitute transportation is scheduled to arrive within one to two hours of the original arrival time (or one to four hours for international flights), the airline must compensate the passenger. However, if the substitute transportation arrives within one hour of the original arrival time, no compensation is required.

Passengers who volunteer to be bumped may receive incentives such as money or vouchers, and there is no limit to the amount the airline may offer. Airlines typically start with a lower compensation offer and gradually increase it if not enough passengers volunteer. Volunteers often have more flexible travel plans and are attracted by the compensation offered. It is important for volunteers to understand the restrictions associated with any reduced rate tickets, free tickets, or vouchers offered as compensation.

While bumping is a common practice, it is important to note that not all airlines engage in overselling flights. Some airlines simply sell enough tickets to fill every seat, significantly reducing the chances of passengers being bumped. However, even these airlines may bump passengers in rare circumstances, such as when a seat is needed for a crew member or a Federal Air Marshal.

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Involuntary bumping is rare

Involuntary bumping, on the other hand, occurs when an airline forces a passenger to give up their seat, usually due to overbooking or operational issues. This practice is indeed legal and outlined in the Contract of Carriage, which passengers agree to when purchasing a ticket. However, it is less common than voluntary bumping and comes with specific rules and compensation guidelines.

Airlines have sophisticated systems in place to predict no-shows and manage capacity, reducing the need for involuntary bumping. They also actively encourage volunteers by offering incentives. While involuntary bumping can still occur, airlines are required to follow established procedures and provide appropriate compensation to affected passengers.

The likelihood of involuntary bumping varies across airlines and routes. It is generally less common on routes with higher competition, where airlines prioritize customer satisfaction and their reputation. Bumping may be more likely on routes with limited alternatives or during peak travel seasons when overbooking is more prevalent.

While involuntary bumping is uncommon, passengers should be aware of their rights and the procedures airlines must follow. Passengers who experience involuntary bumping are entitled to compensation, and the amount depends on factors such as the length of the delay and the ticket price. Understanding these rights enables passengers to assert their entitlements and ensure fair treatment in these rare instances.

Frequently asked questions

Yes, denied boarding or "bumping" is a legal strategy used by airlines to optimise revenue. Airlines oversell flights to compensate for no-shows and to maximise revenue.

Bumping happens when there are more passengers than available seats. Airlines oversell flights on normal days and are more likely to bump passengers during disruptions. Airlines may also need to bump passengers if they need to swap to a smaller aircraft due to weight restrictions or maintenance issues.

Passengers are entitled to compensation and a written statement of their rights. This can be in the form of cash, flight credits, or vouchers. Passengers can also negotiate with the airline and are free to accept or reject the offer.

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