In an effort to make sure that every seat is filled, airlines often overbook flights. In fact, one in every ten people that travel by plane has been bumped off a flight in the past year.
Whether traveling for business or pleasure, an oversold flight can be a major headache. Fortunately, you do have legal rights. Under rules adopted by the Department of Transportation (DOT) in 2011, airlines must follow certain procedures for passengers who are bumped on a voluntary and involuntary basis.
Even if you respond to the airline’s pleas for volunteers to give up their seats in exchange for compensation, the carrier must still follow certain rules. For instance, if the carrier offers free or reduced rate air transportation, it must disclose all material restrictions, including but not limited to administrative fees, advance purchase or capacity restrictions, and blackout dates applicable to the offer before the passenger decides whether to give up his or her seat.
For passengers involuntarily denied boarding, the rules are more complex. They largely depend on the type of flight (international v. domestic) and the level of travel disruption.
For domestic travel, the rules set forth the following payment schedule:
0 to 1 hour arrival delay: No compensation.
1 to 2 hour arrival delay: 200 percent of one-way fare (but no more than $650).
Over 2 hours arrival delay: 400 percent of one-way fare (but no more than $1,300).
For international travel, the timelines are slightly different:
0 to 1 hour arrival delay: No compensation.
1 to 4 hour arrival delay: 200 percent of one-way fare (but no more than $650).
Over 4 hours arrival delay: 400 percent of one-way fare (but no more than $1,300).
Under the DOT’s flyer rights rules, the airline must give each passenger who is involuntarily denied boarding a payment by cash or check on the day and at the place the denial occurs. However, it is also important to highlight that no compensation is required if the carrier offers alternate transportation that is planned to arrive at the airport of the passenger’s first stopover, or if none, the airport of the passenger’s final destination not later than one hour after the planned arrival time of the passenger’s original flight
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
