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United Airline’s Turn to Offer $10,000 to Bumped Passengers

In response to the the incident of forcibly removing a passenger off one of their flights, United Airlines has also (started with Delta Air Lines) adopted a higher offer to bumped passengers. Passengers can now receive up to $10,000 of compensation (travel credit to be used on United Airlines flights).

Once again, I do question the profitability of this move. An interesting stat in the article states:

  • United said it typically overbooks flights by less than 3 percent of the plane’s capacity to account for no-shows, and it sells more tickets than seats available on about 4 percent of flights. But on mainline United flights, 95.6 percent of bumped customers volunteered. Fewer than 1 in 23,000 customers were involuntarily bumped last year, down 44 percent from 2015, United said.

$10,000 Compensation to Bumped Passengers

In addition to the factors that I brought last time, I suspect that this $10,000 compensation package is more of a nice publicity stunt. What I think will more likely happen is that airlines will reduce their overbooking. If United overbooks their flights by less than 3% at the moment, they may drop that to 2% instead. That should offset the additional compensation packages that they pay out.

Either way, my point is that airlines will have a plan to make up the loss profits. For now, I appreciate this move by United Airlines. Any incentive to make it easier for more volunteers to come forward will probably help the overall travel experience.

$1,500 for a Lost Luggage

United also plans to reimburse passengers $1,500 for a permanently lost luggage. The passenger also has the option of applying for more reimbursement, if the contents inside the luggage is worth more than $1,500, but proof will be required for these larger claims.

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

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