Why Airlines Overbook Flights: Algorithms, Compensation, and Passenger Rights

Airlines routinely overbook flights, a practice that has been legal in the U.S. since the deregulation of the airline industry in 1978. This strategy, while controversial, is based on sophisticated algorithms that predict the likelihood of passengers not showing up for their flights. Airlines make money by filling as many seats as possible, but when more passengers arrive than there are seats, they must compensate those who are involuntarily bumped. "They use algorithms to determine how many seats they can possibly oversell based on past flights," explains Abbie Cheeseman, a travel and aviation enthusiast. Cheeseman, who has personally experienced the effects of overbooking, notes that passengers miss flights for various reasons, including last-minute cancellations and delayed connections. The Department of Transportation requires airlines to compensate passengers who are involuntarily denied boarding, but the overselling practice persists. One frequent flyer, whose identity is being withheld, shares their experience: "It's frustrating, but the compensation is usually worthwhile." While the practice of overbooking is commonplace, it highlights the complex balance between maximizing airline profits and ensuring fair treatment for passengers.