Overbooking, practiced by airlines, is a legal practice in many countries, including those in Europe. It allows airlines to maximize revenue per available seat by selling more tickets than there are actual seats on the plane, based on the assumption that some passengers won’t show up at the airport. While this practice may seem controversial—especially when all passengers do show up for boarding—it helps airlines keep ticket prices lower for everyone. 

However, there are regulations that airlines must follow to manage overbooking fairly and provide adequate compensation to passengers affected by this practice. For example, in the European Union, Regulation EC 261/2004 sets out the rights of air passengers and provides for refunds and compensation for those denied boarding due to overbooking or other travel disruptions such as cancelled flights or delayed flights.

How is overbooking resolved?

First of all, airlines ask if there are any volunteers willing to give up their seat on that flight in exchange for incentives such as vouchers, flight credits, or free upgrades. This is the preferred solution because it often helps resolve the situation quickly and smoothly. 

If there are not enough volunteers, the airline must involuntarily deny boarding to selected passengers. This process follows specific criteria set by regulations, which typically include factors such as check-in order, travel class, frequent flyer status, and other variables. It’s important to note that minors are not separated from their parents (at least one guardian must travel with them), and usually—but not necessarily—families or groups under the same booking are not split. However, procedures may vary between airlines.

Once the passengers to be denied boarding are identified, they are provided with assistance and appropriate compensation as required by law, as described in the next section.