Denied Boarding Compensation — Denied Boarding Compensation

Overview

Denied Boarding Compensation (DBC) refers to the statutory remedies passengers are entitled to when an airline cannot board them on a flight for which they hold a valid, confirmed reservation — typically because the flight was oversold (see the related Overbooking entry for why airlines oversell). Compensation rules differ significantly between regions, so the amount and process a passenger receives depend on where the denied boarding occurs.

European Union: Regulation 261/2004

Under EC Regulation 261/2004, if an EU-departing (or EU-arriving on an EU carrier, in some cases) flight is oversold, the operating carrier must first ask for volunteers willing to give up their seats in exchange for negotiated benefits. If not enough volunteers come forward, the airline may deny boarding involuntarily, in which case fixed compensation under Article 7 applies:

This compensation may be reduced by 50% if the airline reroutes the passenger with an arrival delay not exceeding 2, 3, or 4 hours (depending on distance) versus the original schedule. Denied-boarding passengers are also entitled to care (meals, hotel, communication) and a choice of reimbursement or re-routing, separate from the cash compensation.

United States: DOT Rules (14 CFR Part 250)

In the US, involuntary bumping compensation is governed by the Department of Transportation under 14 CFR Part 250. Eligible passengers (holding a confirmed reservation, checked in on time, and denied boarding due to oversale) receive:

Exceptions exist for smaller aircraft, last-minute equipment substitutions, and charter flights. Passengers who volunteer to be bumped negotiate their own compensation with the airline and fall outside these fixed tiers.

Key Distinctions

Related Practice

The underlying commercial practice that creates the risk of denied boarding — deliberately selling more tickets than available seats to offset no-shows — is covered separately in the Overbooking glossary entry.