Delta has received a slap on the wrist for failing to properly compensate passengers who were bumped from their flights. The government handed the airline a $750,000 fine, saying the carrier had routinely mishandled overbooked flights by bumping passengers without asking for volunteers or compensating travelers.
Airlines regularly overbook flights since many passengers end up cancelling or changing their travel plans. If flights are still full when departure time rolls around, airlines typically ask travelers to volunteer for a later flight in order to avoid having to bump (and compensate) any passengers. However, not all travelers realize that they may be entitled to cash or understand the rules about it works.
In general, if the alternative flight a bumped passenger is placed on arrives within one hour of when the original flight was scheduled to land, airlines don't have to pay them anything. But according to U.S. federal regulations, passengers who are involuntarily bumped and will have their travel plans pushed out by more than an hour are entitled to at least 200 percent of the one-way fare to the destination (with a cap at $650). Compensation for longer delays maxes out at $1300.
This isn't the first time Delta has been penalized for bungling how it deals with overbooked flights. The airline was fined back in 2009 for the same infraction.