Under U.S. Department of Transportation (DOT) rules in 14 CFR Part 250, U.S.-certificated air carriers (except helicopter operators) must compensate passengers involuntarily denied boarding due to oversales on overbooked flights. This applies at U.S. airports, including in foreign air transportation, subject to exceptions in §250.6. Compensation is based on the one-way fare to the next stopover or final destination. A 2008 Federal Register notice discusses the formula as 100% of that fare if the alternate flight arrives 1-2 hours late for domestic flights (or 1-4 hours for international), doubling to 200% (with a $400 maximum) if later--though this reflects an advance notice of proposed rulemaking and lacks current confirmation of exact caps.
Carriers must also publish written rules understandable to the average passenger on minimizing involuntary denied boarding, requesting volunteers first, and boarding priority (§250.2b). A "stopover" for fare calculation means a deliberate interruption of more than 4 hours before reaching the final destination. This DOT regulation controls compensation; airline policies implement it but cannot reduce mandated amounts.
What Controls Overbooked Flight Compensation
DOT's 14 CFR Part 250 sets the primary requirements for U.S.-certificated carriers handling oversales. It mandates compensation specifically for passengers denied boarding involuntarily after the carrier seeks volunteers and follows its published priority rules. The rule covers flights departing from U.S. airports, with exceptions under §250.6 that limit applicability in some cases.
Carriers must display or provide their denied boarding rules at check-in and gates, ensuring they are clear to average passengers. Compensation uses the passenger's one-way fare to the next stopover or destination as the base. The 2008 Federal Register outlines delay-based tiers for domestic (1-2 hours for 100%; over 2 hours for 200% up to $400) and international flights (1-4 hours for 100%; over 4 hours for 200% up to $400), but official sources do not confirm if these exact figures or maximums remain current.
| Element | DOT Requirement (14 CFR Part 250) |
|---|---|
| Scope | U.S.-certificated carriers (no helicopters); involuntary denied boarding at U.S. airports |
| Carrier Duties | Publish clear rules on volunteers, priority, minimization (§250.2b) |
| Fare Basis | One-way to next stopover/final destination (stopover >4 hours deliberate) |
| Exceptions | §250.6 limits (e.g., certain foreign air transportation scenarios) |
Eligibility, Exceptions, and Limits
Compensation applies only to involuntary denied boarding, meaning the passenger is not allowed to board despite a confirmed reservation and timely arrival at the gate.
Key limits include §250.6 exceptions, which exclude some foreign air transportation scenarios even at U.S. airports. The rule does not cover situations like flights operated by non-DOT certificated carriers.
What Does Not Control Compensation
DOT rules in 14 CFR Part 250 exclusively govern this compensation; other frameworks do not apply. Credit card billing disputes or merchant refunds are separate processes and not a substitute for carrier obligations. EU 261/2004 or UK CAA rules do not control U.S. flights. General FTC or CFPB protections or 24-hour ticket cancellation policies are unrelated.
Airline policies must comply with DOT minimums but may offer more; they cannot provide less for eligible cases.
Next Steps and Evidence to Gather
At the gate or check-in, request the airline's written denied boarding rules. If involuntarily bumped, obtain written confirmation of the reason, your original and alternate itineraries, expected arrival times, and any compensation offered.
Document your one-way fare paid, planned versus actual arrival times, boarding pass attempts, and all communications. Contact the airline per their policy to claim compensation, as DOT requires carriers to provide it for eligible cases. If the airline does not comply, file a complaint with DOT Aviation Consumer Protection.
Evidence Checklist:
- Confirmed reservation and ticket/receipt showing one-way fare
- Boarding pass or gate denial record
- Written bumping reason and alternate itinerary
- Timestamps for planned vs. actual arrivals
- Airline's denied boarding policy (requested at gate)
- All emails, chats, or notes from airline contacts
FAQ
Does voluntary bumping qualify for DOT compensation?
No, DOT rules cover only involuntary denied boarding.
What defines a stopover for the fare calculation?
A deliberate interruption of more than 4 hours between departure and final destination (14 CFR Part 250).
Do foreign airlines have to follow these rules?
Only if they are U.S.-certificated and the bumping occurs at U.S. airports under qualifying conditions, per §250.6 exceptions.
Is compensation automatic under DOT rules?
No; carriers must offer it for eligible involuntary cases, but passengers should confirm with documentation and request it.