Delta Air Lines, Inc. (DAL), Southwest Airlines Co. (LUV): Airline Overbooking Is Flying High

Compensation

Since overbooking is a common practice in the airline industry, regulators have adopted policies to ensure passengers received at least some degree of compensation for being involuntarily bumped from a flight. In fact, the Department of Transportation has policies covering lost bags (carriers are required to refund fees on lost bags) and tarmac delays as well. Travelers are encouraged to stay updated on their rights as passengers and can view current policies by visiting the Department of Transportation website. But at the end of the day, airlines will continue overbooking flights and bumping passengers because it’s profitable for them. And as shareholders, we tend to like profits, but as passengers, we should know our rights.

The article Airline Overbooking Is Flying High originally appeared on Fool.com and is written by Alexander MacLennan.

Alexander MacLennan owns shares of Air Canada and Delta Air Lines. He is also owns the following options: long $22 Jan 15 calls, long $25 Jan 15 calls, long $30 Jan 15 calls, long $17 US Airways calls. This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. The Motley Fool recommends Southwest Airlines. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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