Yahoo Finance Delta has upped its compensation on overbooked flights, but there’s a catch
In an effort to distance itself from United Airlines in the wake of the scandal that erupted after a passenger was forcibly removed from one its planes, Delta has upped its compensation for seats on overbook flights to nearly US$10,000.
But there’s a catch: The money it gives to customers in exchange for these spots likely won’t be in cash.
According to Quartz, Delta gave an average of $9 in cash or cheques to its passengers who were denied boarding last year.
That figure includes both passengers who volunteered and those who were selected to give up their seats if no one came forward.
Of just the passengers who volunteered to give up their seats, the payday is actually worse. According to Quartz, Delta provided an average of $0.08 to passengers who willingly gave up their seats on overbooked flights.
In fact, among U.S. airlines, Delta has provided the least amount of cash compensation per traveller bumped from overbooked flights.
Between 2008 and 2016, it handed out an average of $25.51 per passenger, which trails SkyWest, the next lowest airline at $40. In comparison, JetBlue led the way with an average of $273.80.
So how does Delta compensate its bumped passengers?
Quartz noted that given the airline’s past record, passengers would be lucky if they received a choice of gift cards, like the family of Laura Begley Bloom did. Bloom took home nearly $11,000 in gift cards from Delta when she, her husband and four-year-old daughter gave up their seats on a flight to Fort Lauderdale from New York.
However, Delta reportedly only provides gift cards at a handful of major airports in the U.S., and usually just provides vouchers.
And there’s another catch to Delta’s new policy.
The potential $9,950 reimbursement is only available to passengers who voluntarily give up their seats.
In the U.S., the Department of Transport only requires companies to provide up to a maximum of $1,350 to travellers who are involuntarily removed, while the Canadian Transportation Agency leaves the amount up to the individual airline.
