Fewer Airplane Seats + Overbooking = More Bumps

Nearly 350,000 passengers bumped in the first half of 2008. That carries a cost for airlines -- and ultimately for the flying public

Put these random thoughts together any way you choose, and draw your own conclusions of the sort of mess American air travel is in:

• According to "More Flights Are Overbooked, but Payoffs Are Rising" in today's New York Times business section, "about 343,000 passengers were denied seats on planes...out of 282 million passengers. Most of those people volunteered to give up their seats in return for some form of compensation, like a voucher for a free flight. But statistics also show about 1.16 of every 10,000 passengers had their seats taken away outright because of overbooking — which may sound like a low rate, until your name is called."
• The article continued, "Back when most tickets were refundable or easy to change, and the airlines offered multiple daily flights to many cities, carriers used to routinely overbook about 15 percent of their seats. Passengers who missed their plane could simply catch a later flight. Rules are tighter now, and passengers with nonrefundable tickets can only expect a credit for an unused ticket, often minus a hefty fee, if they change their flight. That means they have more incentive to show up. But airlines still overbook."
• Compensation to bumped passengers is up. Times reporters Micheline Maynard and Michelle Higgins wrote, "Travelers can now receive up to $400 if they are involuntarily bumped and rebooked on another flight within two hours after their original domestic flight time and within four hours for international. They are eligible for up to $800 in cash if they are not rerouted by then. The final amount depends on the length of the flight and the price paid for the ticket....Compensation must be paid immediately in cash, or with a voucher if the passenger accepts it, and the airline must offer a choice of a refund, a return flight to their departure city or an alternative flight. Volunteers also receive compensation, which they negotiate with the airline. Passengers are learning, however, that if an airline does not get enough volunteers at a lower figure, they might be able to bid up the offer, and also obtain sweeteners that include vouchers for meals, hotels, transportation and even plane tickets."
• Passengers flying free or using a voucher are cutting into airlines' direct revenue streams.
• US carriers have announced plans to cut routes they claim are unprofitable. Airlines have imposed fuel surcharges and miscellaneous other fees. Despite these additional charges along with service reductions, planes are quite full and will be fuller come fall.
• The annoying, arbitrary and ever-changing Transportation Security Agency screenings add to the unpleasantness of domestic air travel today.
• With frequent-flier awards increasingly difficult to redeem (and now costly to redeem), miles have stacked up, adding to the liability on airlines' balance sheets.
• The recession in which the US finds itself, but is loathe to call by that name, is cramping many Americans' travel styles. Like it or not, "staycation" has become a word in the travel vocabulary.

The Airline Deregulation Act of 1978 let airlines chart their own operational courses and set (and change) air fares at will. Three decades later, in a very different world in terms of fuel costs, technology, sheer numbers of flyers and travelers' expectations, the airline industry in the US has broken, and no one seems to be taking much interest in fixing it.