American Airlines changes way customers compensated for overbooking

Posted at 10:54 AM, Nov 08, 2019
and last updated 2019-11-08 12:54:25-05

PHOENIX — American Airlines is tinkering with how customers on overbooked flights receive compensation for altering their travel plans.

When a flight is overbooked or a plane is swapped out for a smaller one — the latter accounting for the majority of such situations — American Airlines Group, Inc. (Nasdaq: AAL) would previously call customers over the phone. The airline, which is the largest air carrier operating out of Sky Harbor International Airport in Phoenix, would offer flight vouchers in exchange for customers choosing to take another flight.

If no customers took the first round of voucher offers, the reservation team would then have to call customers back with an increased offer.

"Not a great process," said Julie Rath, vice president of Customer Experience, Innovation and Delivery at American. "It didn't allow us as airlines to be able to reach as many customers as we'd like. We want to reach every customer, if at all possible, prior to getting to the airport so that we're valuing the customer's time."

Click here for the full story from the Phoenix Business Journal.