May 2. American Airlines executives recently shed some light on how the carrier has used automated technology to help it manage overbooked flights more optimally. We take a closer look at how American Airlines is dealing with overbooked flights.
The practice of overbooking fares on flights helps airlines keep as close to 100% flight capacity as possible due to some passengers inevitably canceling or rescheduling. In other cases, oversold flights occur because a flight will switch to a smaller aircraft that offers fewer seats.
This can lead to disgruntled customers who find they cannot board their overbooked flights as there simply aren’t enough seats onboard. It can also hit airlines hard both reputationally and financially, with carriers paying out compensation to those affected.
Source: Simple Flying