
Following a high-profile 2017 incident in which a passenger was 'bumped' from and dragged off a United Airlines flight, airlines are bumping far fewer passengers off of flights. Wall Street Journal 'Middle Seat' columnist Scott McCartney explains.
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With your Money briefing, I'm JR Whalen at the Wall Street Journal in New York. Getting to the airport on time to make your flight is stressful enough, but the possibility of being bumped off a flight can drive somebody up a wall. We'll explain in a moment how airlines are drastically reducing the number of passengers they bump from flights. First, these money and market stories you should know. In its latest economic report, known as the Beige Book, the government says that rising interest rates appear to be putting the brakes on the housing market in other sectors of the economy. The average interest rate on a 30 year fixed rate mortgage in October was 4.83%. That's up from 4.03% in January. The Federal Reserve found that new home construction and existing home sales tended to decline or hold steady in recent weeks. Also, the strengthening employment picture appeared to be adding to business uncertainty as well as employers found it increasingly difficult to find and retain qualified talent. Business contacts in many of the Fed's districts around the country said the labor market had tightened further in a broad range of fields. The Chicago Fed district, for one, reported a number of businesses had been ghosted. That's a situation in which a worker stops coming to work without notice and then is impossible to contact. And to many people, Florida sounds like a good place to visit in the cold days of December. For a lot of others, Florida is a good enough place to pick up and move there. Altogether, a new report from LendingTree says that of all the mortgage requests made by out of State Movers in 2018, the top destination was Florida and South Carolina was a close second. LendingTree also says that Texas had the highest percentage of residents, about 93%, looking to move within state lines. By contrast, Alaska had the lowest percentage of residents looking to stay in State at 75%. The top destination out of Alaska was Washington State. Remember that incident back in 2017 when a passenger was dragged off a United Airlines plane after he was bumped to make Room for airline employees. Well, that incident has resulted in airlines bumping a lot fewer passengers. And Wall Street Journal middle seat columnist Scott McCartney and is on the line with us to explain. So, Scott, bumping passengers used to be fairly common. Now by comparison, it's much more rare.
D
Yeah, it really is. We looked at the numbers for the first nine months of the year so far, and overall for the industry, involuntary denied boarding, which we more commonly call bumping, was down 69%. Some airlines, you know, large numbers. Last year, the same period of time Southwest bumped 11,000 people involuntarily, this year, only 2,000. American dropped from 7,000 to only 1,000. So across the board, there's been a lot of change in how airlines approach this.
C
And some airlines have gotten good at running the numbers to nearly eliminate altogether the possibility of bumping passengers.
D
Yeah, really the best at it now are Delta and United. Delta, for example, they had already started before last year at really curbing this practice. They bumped only 912 people last year, but in the first nine months of this year, only 22 people. I mean, it's about as close to zero as you can get these days. United had similar results, down 97%. They only bumped 70 people in the first nine months of the year. They actually had two months where they carried 30 million people and only bumped six of them.
C
Oh, wow. And, you know, people see this as being very frustrating and sort of, you know, some might say evil on the part of the airlines to bump passengers, but they're doing it to account for the possibility of no shows or cancellations. And that's a business decision.
D
Well, it is a business decision. I do think there's an inherent unfairness to it. When you buy a ticket, particularly a non refundable ticket, you're entering into a contract with the airline, they're essentially selling you a seat on the airplane. If you don't show up, they're gonna charge you a change fee or pocket the money. But if the airline wants to bump you out of that seat that you paid for, it can do that. It can do that in order to take a higher fare passenger. Now, the government allows this, but requires compensation. But you know, over the years, this issue has angered travelers as probably as much as anything. And you're right, what we see now is it's been reduced so much that it really only happens in, not so much in overbooked situations. Airlines have figured that out. But in mechanical problems, for example, an airplane breaks down and the airline is going to substitute a different airplane. Well, that Substitute airplane may have 20 fewer seats, so 20 people get bumped from the flight. Another common bumping situation now is in the summertime with high heat and the airplane can't take off with a full load. So 10 passengers have to be bumped off the flight so that you're within the the abilities of the airplane to take off.
C
And United Airlines, for one, has made an effort to work with passengers to prevent them from making an unnecessary trip to the airport if the airline knows that they're going to be bumped.
D
That's right. They've set up a team of people who will actually contact. So they now have systems that predict which flights may actually end up with people to bump through overbooked situations or the mechanical problems, things like that. And they will call them at home. And several airlines are doing this. But United has really made great progress with this. You know, sometimes people buy tickets for connecting flights because it's a cheaper fare. And so the airline can call them and say, hey, would you rather take the nonstop to San Francisco rather than connecting through Denver? It may be a better situation for the customer. If it's not a better situation, they may sweeten the pot with some compensation. They may change times. You know, you may have booked that 6am flight because it was the cheapest fare, but you'd really rather take the 10am flight. And if they can offer that to you, then they can avoid sort of a showdown at the gate where gate agents are scrambling to offer vouchers and things like that to get people to give up their seats. It's better for the passenger if you have some certainty. You know when to go to the airport. You may even get some compensation out of it. And it's better for the airline. They can get flights out on time and they don't end up disappointing people at the gate.
C
All right, that is Wall Street Journal middle seat columnist Scott McCartney with us. Scott, thanks for coming on the line.
D
Sure. Great to be with.
C
And that is your money briefing. I'm JR Whalen in New York for the Wall Street Journal.
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Episode: Airlines Bumping Far Fewer Passengers From Flights
Date: December 6, 2018
Host: JR Whalen
Guest: Scott McCartney, Wall Street Journal Middle Seat Columnist
This episode examines a notable decline in the number of airline passengers being involuntarily bumped from flights. Host JR Whalen speaks with Scott McCartney, the WSJ's Middle Seat columnist, who explains the reasons behind the drop, provides recent bumping statistics for major airlines, and discusses the industry’s evolving approach to handling overbooked flights. The conversation also touches on the implications for both airlines and passengers, including new tactics to reduce last-minute airport disappointment.
This episode provides a clear look at how passenger experiences with overbooked flights have improved in recent years and details the strategies airlines are using to minimize disruption. The insights from Scott McCartney offer valuable context for both frequent and occasional flyers.