Airlines sometimes overbook flights to offset the impact of no-shows, aiming to ensure that planes fly at full capacity. This practice, in situations where all passengers show up, may result in some passengers being stranded at the airport due to insufficient available seats.
Passengers travelling within, to, or from the EU are protected under EU regulation 261/2004, which mandates that airlines must compensate passengers affected by overbooked flights. The following is an overview of what passengers should know about their rights if they are stranded at the airport because of an overbooked flight.
Call for volunteers
When overbooking occurs, airlines must first seek volunteers who are willing to give up their seats. These volunteers are offered certain benefits by the airline and have the right to choose between a full refund within seven days or an alternative route to their destination. However, passengers who voluntarily give up their seat and accept the airline’s offer of additional benefits forfeit their right to the legal monetary compensation.
Denied boarding
Passengers who are denied boarding against their will are eligible to financial compensation. The compensation amount varies depending on the flight distance. A €250 compensation applies for flights of less than 1,500km, €400 for flights within the EU over 1,500km and other flights between 1,500 and 3,500km, and €600 for flights over 3,500km outside the EU.
Compensation can be reduced by 50% if passengers are rerouted and arrive at their destination within a certain time frame. In the case of short flights, the time limit is two hours, three hours for medium flights, and four hours for long-haul flights.
To qualify for compensation and assistance, passengers must have checked in on time
Besides financial compensation, airlines must provide assistance to affected passengers, meals and refreshments suitable to the waiting time; if an overnight stay becomes necessary, the airline must also offer accommodation and transport to and from the airport. These services must be provided free of charge, ensuring that passengers are taken care of during their delay.
To qualify for this compensation and assistance, passengers must hold a valid flight ticket confirming their booking and must have checked in on time. If the airline can arrange an alternative flight that arrives at the same time as the originally booked flight, the airline is not obliged to provide monetary compensation.
Financial compensation is also not obligatory in situations where the overbooking results from extraordinary circumstances outside the airline’s control, such as extreme weather or air traffic control restrictions.
Down- or upgrading due to overbooking
In some cases, overbooking affects class availability, leading, for instance, to passengers being downgraded to economy class from business class. When a passenger is moved to a lower class, the airline must compensate them with a refund proportional to the ticket price.
The applicable refunds are 30% for flights up to 1,500km, 50% refund for intra-EU flights over 1,500km and other flights between 1,500 and 3,500km, and 75% refund for flights over 3,500km. Conversely, if a passenger is upgraded to a higher class due to overbooking, they are not charged for the upgrade.
Filing a complaint
If an airline fails to provide the required compensation or benefits, passengers should first register a complaint directly with the airline. It is important to submit all relevant documentation with the complaint. Thus, the passengers need to keep record of the booking details, their boarding pass, and any communication with the airline. Whenever possible, passengers should also take photos of the boarding denial and record any delays or alternative flight arrangements offered.
If the airline rejects the claim, passengers can fill in an EU complaint form and submit it to the relevant enforcement body based in the location of the incident. Passengers facing issues in Malta or on flights to Malta with an EU-licensed airline can register their complaint with the Malta Competition and Consumer Affairs Authority.
EU regulation 261/2004 provides robust protection for passengers impacted by overbooking in the EU, granting them rights to compensation, assistance and the choice between rerouting and a full refund.
These safeguards are designed to minimise the disruption passengers encounter because of overbooking, holding airlines accountable for their practices while ensuring passengers receive the support they need to continue their travel plans with as little inconvenience as possible.
Odette Vella is director, Information and Research Directorate, MCCAA.