Airlines are tightening their belts, trying to cut what it costs them to give out denied boarding compensation to passengers when they overbook a flight. Both United and American have copied Delta in soliciting ‘bids’ from customers for what compensation they’d accept, hoping to avoid bidding wars at the gate.
In the wake of United’s April 2017 passenger dragging incident – where David Dao was told to give up his seat for two crewmembers and refused, winding up bloodied by airport – there was a huge public backlash against bumping passengers off of overbooked flights. And airlines started paying out far more compensation to avoid involuntarily denying boarding to passengers.