American Airlines Offered $4,000 To Give Up A Seat To Aspen — The Flight Diverted Anyway

American Airlines was reportedly handing out $4,000 per passenger to voluntarily take a later flight to Aspen when they had more customers than seats. What’s incredible isn’t just the amount – although that’s a life-changing amount of travel credit for some people.

It’s shocking that it was American Airlines doing this. They almost never offer up significant compensation in voluntary denied boarding situations, preferring to pay out the legally-required minimum cash instead. That’s why American bumps more passengers in oversell situations than any other airline.

The flight was overbooked because they needed extra fuel and had to go out with 8 seats empty. “[T]he family behind us on the plane literally watched all of their ski bags sitting on the tarmac. Also left behind for weight.”

It turns out taking the denied boarding compensation was the smart play because the flight wound up diverting to Grand Junction, Colorado.

The passenger here doesn’t identify the flight but this looks like American 6506 from Chicago O’Hare to Aspen, operated by SkyWest. That’s the one that diverted to Grand Junction.

This passenger rented a car in Grand Junction to make the final leg to Aspen, but rental cars were oversold. They wound up on an airline-provided bus.

$4,000 is incredible denied boarding compensation, though years ago I saw United once go to $10,000. American just does not do this. In 2019 they started taking bids on potential volunteering in their app, offering low amounts, and even holding people to those bids.

I just wrote about their leaked playbook showing that the third offer at the gate is usually the max unless management away from the gate approves more.

  • When you buy a ticket for a flight, the airline should transport you on the flight
  • But since some people don’t show up, or book and cancel at the last minute, airlines sell more tickets than seats. Sometimes that means more passengers than seats show up (leaving aside cases where an airline substitutes a smaller plane and winds up with fewer seats to offer).
  • The correct approach is to make customers whole in this circumstance. That goes along with selling more tickets than seats! Offer enough compensation so that passengers feel they’ve come out ahead by taking a later flight.

Delta does this, and looking at DOT data from one year ago Delta had 0 involuntary denied boardings, United had 49, and American had 2,906. American doesn’t normally bid aggressively like this for volunteers.

After the United Airlines incident where David Dao was dragged off a flight and bloodied because he wouldn’t give up his seat, Delta empowered staff to go up to $9,950 while United went to $10,000. Sadly United cut that to $2,500 in 2020.

American has had isolated documented cases at $4,000 or more before, including one where a manager stepped in and told agents to “give them all $4000.” They even paid out $5,000 per person on a flight in 2018.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

More articles by Gary Leff »

Comments

  1. Please. If you’re not taking your own plane to Aspen, why are you even going?

  2. “Life changing amount of travel credit”

    Gary, in what world is travel credit life changing?

  3. Gary, a future good article or comment would be how to use such credits. One time use or can redeem partially over a year. A huge credit might only be good for family travel or business international and forfeiting part of it.

Leave a Reply

Your email address will not be published. Required fields are marked *