Why do airlines overbook flights?

You may have encountered situations where airlines oversell seats, meaning they sell more seats than are actually available, leaving some passengers without a seat, possibly resulting in upgrades, downgrades, or even forced flight changes. But why do airlines oversell seats?

According to the aviation news website “Simple Flying,” overselling seats is a common practice in the airline industry worldwide. While overselling seats may appear careless or even fraudulent on the surface, passenger skepticism towards this practice is understandable. However, the number of passengers who are unable to board their booked flights due to this practice is minimal.

For most flights, a small percentage of passengers may cancel their seats last minute or not show up (no show), freeing up some seats, prompting airlines to oversell to increase actual passenger load and lower costs.

Based on analysis of each flight route, airlines oversell seats to achieve the closest possible to a 100% actual passenger load.

For example, dispatchers at German airline Lufthansa may know that selling 107% of available seats for a flight departing from Frankfurt on a Tuesday afternoon could result in a 99.5% actual passenger load. Their Airbus A320 aircraft with 126 economy seats might sell 135 economy seats (107% of 126), overshooting by 7%.

It is difficult to ascertain how many passengers are involuntarily denied boarding due to airlines overselling seats. The International Air Transport Association (IATA) estimated in 2016 that 0.09% of passengers were denied boarding in the U.S., but this could also stem from other reasons such as passenger misconduct and not solely overselling of seats.

The association has established standards that airlines must follow when overselling seats. Seeking volunteers to give up seats is the first step. Offering compensation to such passengers is an industry-standard practice. Governments also impose stringent regulations to limit the number of seats airlines can oversell.

As an additional tool, airlines may sell standby tickets to passengers. This not only enhances ticket transparency but also allows passengers to choose flights that the airline cannot provide through other means.

After reaching the oversell limit, airlines may sell five additional standby tickets to prevent confirmed passengers from missing their flights, exceeding historical statistical data — a scenario that occurs frequently as historical data is an average, not a rule.

When boarding, once the boarding gate closes, empty seats result in revenue loss for airlines and missed opportunities for passengers. Therefore, airlines aim to fill as many seats on each flight as possible. For airlines, overselling seats is deemed necessary.

Passengers can take the following three simple actions to reduce the chances of being denied boarding due to airlines overselling seats:

– Board on time
It is crucial to arrive at the boarding gate on time. If passengers are not present when ground staff calls them the first time, their reservation might be canceled as staff work to fill the busy flight with passengers.

– Express loyalty
Express your loyalty to the airline. Small gestures like registering for a rewards account with the airline you are flying with can elevate your position on the passenger list. This requires no cost, and your identity will be noted in the airline’s system, even if it’s your first time flying with them.

– Check-in early
If possible, try to check in online or at the airport well before the flight departs. Passengers without any identity in the airline’s system when they determine who cannot board are typically eliminated based on the time of check-in. Checking in early is advantageous.