Is increasing airline denied boarding compensation limits the answer? Factors that contribute to denied boardings

There has been an increase in the number of involuntary denied airline passenger boardings in the US. A denied boarding is influenced by multiple factors other than compensation amounts, including the accuracy, magnitude, and variability associated with no-show forecasts, load factors, and carriers’ day of departure operating policies. We describe how these and other factors influence denied boardings, why they differ across US carriers, and why carriers have strong internal incentives to reduce denied boardings.

► Denied boarding by US airlines is influenced by many things other than compensation amounts, including the accuracy, magnitude, and variability associated with no-show forecasts, load factors, and carriers’ day of departure operating policies.
► The factors influencing denied boardings differ across US carriers.
► Carriers generally have strong internal incentives to reduce denied boardings.