Overbooked flights mean the airlines sell more seats then are actually available in a plane. Why air companies allow overbooked flights and what can passengers do in case it turns out you are registered for the overbooked flight?

Why are airlines allowed to overbook flights?

The price and return policy for air tickets varies to ensure the flight company minimizes the loses no matter what is the reason of the ticket return or if a passenger doesn’t show up for boarding. That leads to overbooked flights, when passengers who purchased the ticket cannot get on the board and and cannot take the flight they paid for.

The airlines sell number of flight tickets at expensive flexible rates. The conditions of such flight tickets allow passengers change and select another flight.

But for air company that would mean that one air ticket is not sold. Also, the air company will have to return the passenger amount spent for the purchase the of the flight ticket. As a rule, the airlines apply charges for the return of the air-ticket. These amounts are different and depend on the class of the ticket and the period of time left before the departure. People change their plans and certain number of passengers will return the air ticket. This is why the air companies have to estimate and sell more flight tickets and it leads to the overbooked flights. But this doesn’t happen often.

What happens if the passenger who bought a non refundable ticket doesn’t come up for the flight? The air company will be in profit even twice in case this ticket is sold once again.

Another reason why air companies sell tickets for the overbooked flights is that in the airports things are permanently changing and unforeseen measures may result in a change of the air craft.

The airlines can provide smaller aircraft instead of the one planned. This is how the issue of overbooked flight comes up.

If the airline company sold more tickets then seats available in a plane and all the passengers came on time for the registration and for boarding, then it is cheaper for the airlines to relocate the passengers for another class of flight seats, – business class instead of economy for example.

That’s the answer to a pleasant surprise one can come across in the airports when surprisingly being upgraded to a business class seat.

What are the rights of the passengers in case of overbooked flights? Overbooked flight compensation.

But what happens if there is no free seat in a plane, all the passengers came on time but cannot be accommodated in same plane. The air companies start looking for the volunteers who can change their schedule and will agree to take another flight. The person who kindly agreed to take another flight can be offered overbooked flight compensation.

If nobody volunteered the air company can take a passenger from a flight.

A passenger, who doesn’t get a seat is allowed for the overbooked flight compensation in the amount of 250 EURO for the flights up to 1500 km. This rule applies to EU air companies and any company departing from the territory of EU.

400 EURO is paid for the flights covering the distance from 1500 to 3500 km.

600 EURO is reimbursed for the flights more then 3500 km.

Keep in mind that air companies have the right to reduce the amount of overbooked flight compensation for 50% in case a passenger if offered a change of route by alternative flights. If the arrival time is no more then 2 hours from the initial flight covering up to 1500 km, 3 hours for the flights from 1500 – 3500 km and 4 hours for the flights more then 3500 km the overbooked flight compensation can be reduced.

If a passenger decides to take a later flight the airline company must arrange drinks and food. If period of waiting between the flights is too long they must also organize hotel accommodation for the traveler.

Rules for the air companies in USA foresee that a passenger can be taken off the plane and transported by another flight.

If a new flight arrives later then 1 hour in comparison with the final destination in the initial ticket, the air company may not reimburse the overbooked flight compensation of the ticket.

If the arrival time is later within 1-2 hours on the territory of USA and within 1-4 hours for the international flights – the air company is to pay overbooked flight compensation in the amount of 200% of the cost of one way flight ticket tariff but no more then $675.

In case time of arrival of the new flight is more then 2 hours compared to the initial route within the USA and more then 4 hours later for the international flights the air company is to reimburse overbooked flight compensation in the amount of 400% of one way flight ticket cost but no more then $1350.