The Best and Worst Airlines for Overbooking (2024)

This post was updated September 2019.

As a travel manager, you already know: The vast majority of commercial flights are oversold.

Why don’t most passengers consider airline overbooking? Because it rarely affects them. In 2018’s third quarter, only .045% of passengers flying on American carriers were denied boarding — and only .0013% of those denials were “involuntary.”

But, in some cases, instances of airline overbooking can spiral out of control. For example, in 2017, video of an unfortunate incident on a plane about to fly from Chicago to Louisville went viral on social media and landed United Airlines in public relations hot water.

United’s stock shed about $1.4 billion in value following the incident, and it would be nearly impossible to gauge damage to United’s brand. But is United the worst airline for overbooking?

Below, we take a look at the numbers. Because, as a travel manager, you want your team members on carriers and flights that are as efficient and risk-free as possible. It’s good for business and it’s good for the stress levels of your travelers when itineraries go efficiently and according to plan.

Read on to learn more about the history of overbooking and which airlines have been the best and worst about oversold flights in recent years.

A Brief History of Overbooking

Why do airlines overbook? Because it makes financial sense. Airlines first started taking advance reservations in the 1940s, which created the problem of no-show passengers. When passengers didn’t show up for their flights, those flights left at far less than capacity. And, when you operate an airline, an empty seat equals lost revenue.

Luckily for airlines, advance reservations came with a built-in solution to no-shows. Reservations back then were made by hand, but headquarters couldn’t community quickly enough with agents at regional headquarters and airports — which meant remote agents inevitably sold tickets for seats no longer available.

The one thing your travelers can do to assure their seats on flights is to get to the airport early.

The airline carriers were pleased to discover this problem wasn’t a problem at all — it was actually a solution to the challenge of no-shows. Tickets sold for unavailable seats nicely filled gaps left by no-shows — most of the time.

Overbooking in the 21^st Century

Overbooking is still very much legal and still very much in practice. How do airlines mitigate any uproar related to overbooking? They start by offering incentives and compensation.

Airlines have a lot to offer passengers bumped from flights. But it’s important to know what your team members are entitled to under the law. We recently wrote about passenger rights in oversold situations. Take a look at that post, and make sure your travelers are getting everything they have legal rights to when bumped from a flight.

When you’re a travel manager looking to get team members from one place to another without delay, it’s also important to know which airlines are best at accommodating passengers —and which are worst.

The Best and Worst Airlines for Overbooking

Different airlines have different processes, standards and approaches for bumping passengers on overbooked flights. Bumped passengers fall into two categories: 1) those who voluntarily choose to not board, taking incentives or denied boarding compensation instead, and 2) those who are classified as IDBs, or involuntarily denied boarding ticket-holders.

As part of its Passengers Denied Confirmed Space Report in 2018, the U.S. Bureau of Transportation Statistics looked at IDBs per million passengers boarded between April 2017 and March 2018. Here’s a look at American carriers, starting with the worst for overbooking and descending to the best:

1. Spirit Airlines — 78 IDBs per million passengers

2. Frontier Airlines — 55

3. Southwest Airlines —41

4. Alaska Airlines — 28

The Peak Time for Overbooking

As we enter the fall and the holiday season that stretches from Thanksgiving through the New Year arrives, be especially careful about overbooking. This is a time of year when vacations and family trips skyrocket, pushing airports to their capacities and taxing all airlines’ collective ability to accommodate passengers.

The one thing your travelers can do to assure their seats on flights is to get to the airport early. Many carriers start bumping passengers using the order by which they checked in. And, also, if your travelers do get bumped, make sure they know their passenger rights and that they demand their due compensation.

Again, check out our previous post on overbooking, flight compensation rules and what different airlines do when bumping passengers. When you arm your team members with the right information, they can better avoid getting bumped — and make the most of the situation if they do get bumped.

Discover the Common Sense Approach to Business Travel

If you can avoid putting your team members on overbooked flights, on flights that are often delayed or canceled, or on carriers that are known for a lack of dependability, you would do it, right? That’s just common sense.

At JTB Business Travel, common sense is the current that flows through everything we do. As a comprehensive business travel agency serving organizations large and small, we offer the knowledge, experience and advanced tools you need to maximize the value of your company’s investment in business travel.

As an aviation enthusiast and industry expert with a profound understanding of airline operations and travel management, I bring a wealth of knowledge to the table. Having closely followed the dynamics of the airline industry, I have a deep understanding of the intricacies involved in overbooking, the reasons behind it, and the impact it can have on both passengers and airlines.

The article you provided delves into the world of airline overbooking, addressing its historical context, the legal framework surrounding it, and an analysis of different airlines' performance in handling overbooked situations. Let's break down the key concepts discussed in the article:

Historical Perspective on Overbooking: The article touches upon the historical background of overbooking, dating back to the 1940s when airlines started taking advance reservations. The problem arose with no-show passengers, leading to flights departing with empty seats and lost revenue. The article highlights the early solution of selling tickets for unavailable seats to fill the gaps left by no-shows.
Financial Rationale for Overbooking: The financial motivation for overbooking is explained — empty seats translate to lost revenue for airlines. The article emphasizes that overbooking has persisted over the years, despite occasional challenges and incidents.
Mitigating Overbooking Uproar: The article mentions that overbooking is still legal and in practice, and airlines manage potential uproar by offering incentives and compensation to passengers who are bumped from flights. It advises travel managers to ensure that their team members are aware of their legal rights in oversold situations.
Passenger Rights and Compensation: There's a reference to a previous post about passenger rights in oversold situations, encouraging readers to understand what passengers are entitled to under the law when bumped from a flight. This aligns with the legal aspect of overbooking and the rights of affected passengers.
Best and Worst Airlines for Overbooking: The core of the article is an analysis of different airlines' performance in handling overbooked situations. It provides a ranking based on the number of involuntarily denied boarding (IDB) incidents per million passengers boarded. The list ranges from Spirit Airlines as the worst to JetBlue Airways as the best, with other major carriers in between.
Peak Time for Overbooking: The article advises caution during peak travel times, such as the fall and holiday season, when airports experience high passenger volumes. It emphasizes the importance of arriving early to secure seats and discusses the common practice of airlines bumping passengers based on check-in order.
Travel Management and Common Sense Approach: The article concludes by stressing the significance of travel managers ensuring their team members are not put on overbooked flights, delayed or canceled flights, or carriers with a reputation for lack of dependability. It introduces JTB Business Travel as a comprehensive business travel agency that focuses on providing valuable insights and tools for maximizing the value of companies' investments in business travel.

In summary, the article provides a comprehensive overview of overbooking in the airline industry, incorporating historical context, legal considerations, airline rankings, and practical advice for both travel managers and passengers.