Originally Posted by
izhar
There is something in this whole UA "overbooked" flight that I don't understand, and forgive me in advance for my appalling ignorance.
Airlines claim they have to use the practice of overbooking because in the event of a "no show" the empty seat can not be sold and that means loss of money.
But my logic tells me that even when a passenger is a "no show" his or her ticket is still payed for, since airline tickets are generally payed for in advance, and can not be refunded AFTER the plane took off. So why does the airline care if the seat is empty?
Where am I wrong here?
I.M.
1) Refundable tickets can sometimes be refunded if not used (it's only non-refundables and some others than you have to cancel to retain value).
2) If refundable pax don't show, filling seats increases revenue, meaning airline can reduce prices overall (i.e., they can price as if planes are full, not less than full)
3) misconnects also happen, which relates to point 2 (if they can fill every seat more easily, they can potentially lower all ticket prices).