What New Rules on Airline Overbooking Mean for Passengers

The European Union published its long-delayed overhaul of air passenger rights in its Official Journal on October 2, 2026, but the revised rules apply only from October 23, 2027. For a passenger bumped from an oversold flight today, the rules are unchanged: leaving a US airport, you are owed 200% or 400% of your one-way fare, capped at $1,075 or $2,150 since January 2025, and flying home from Europe, the current EU261 and UK261 payments of up to €600 or £520 still apply. Most other "new rules" in recent headlines are refund protections, or US plans that have been paused or withdrawn.

Key takeaways

If you are bumped involuntarily from a flight leaving a US airport, the airline owes 200% of your one-way fare (up to $1,075) or 400% (up to $2,150), depending on how late its replacement flight is planned to get you there.
Compensation must be offered in cash or by check on the spot; a travel voucher is allowed only if it is worth at least as much, its restrictions are disclosed first, and you are told you can refuse it.
Missing the airline's check-in deadline, a switch to a smaller plane for safety or operational reasons, or a replacement flight that gets you there within one hour all remove the right to payment.
DOT withdrew its plan to require cash compensation for delays and cancellations in November 2025, so US rules still pay cash only for oversold-flight bumping.
The revised EU261 regulation was published on October 2, 2026, but applies only from October 23, 2027; until then, the current EU and UK rules (up to €600 or £520 when bumped) remain the ones that apply.

What it means for you

Flying from a US airport: on any airline's scheduled flight with 30 or more seats, being bumped against your will pays 200% or 400% of your one-way fare, up to $1,075 or $2,150, in cash or by check, unless an exception applies. The formula, worked examples and exceptions are under "How US bump compensation works"; paid extras you could not use are covered in "Refunds when you are bumped".
Flying home from the EU or UK: the US rule does not apply on the return leg. EU261 or UK261 pays a fixed €600 or £520 on a transatlantic flight, which can be halved if the reroute arrives within four hours, plus meals and, if needed, a hotel. The EU overhaul changes nothing before October 23, 2027; see "Flying home: EU261 and UK261".
Volunteering at the gate: what volunteers get is whatever they agree to, so ask what the airline would owe if you were bumped involuntarily and compare any voucher with that figure. See "Volunteering versus being bumped" and the checklist at the end.
Delayed or cancelled, not bumped: federal rules pay no cash compensation, and DOT withdrew its plan to require it in November 2025. If the flight is cancelled or significantly changed and you reject the alternative the airline offers, you are owed a refund; see "Refunds when you are bumped".

Which rules apply now, which don't

The table separates rules that apply today from those still pending, as of October 2, 2026.

Change	Status	What it means for a bumped passenger
Higher DOT caps on denied boarding compensation ($775/$1,550 raised to $1,075/$2,150)	In force since January 22, 2025; DOT enforced from March 20, 2025	More money when 200% or 400% of your fare is above the old caps
DOT automatic refund rule (14 CFR Part 260)	Airlines have had to comply since October 28, 2024	Prepaid extras you could not use because of an oversale must be refunded promptly; when the problem affects only you, the airline's obligation starts once you tell it
Pause on refunds when a flight is only renumbered	Enforcement paused until July 7, 2027	No refund is owed just because the flight number changed, if the trip is not otherwise significantly changed
Proposed cash compensation for delays and cancellations (December 2024 advance notice)	Withdrawn November 17, 2025	No federal cash payment for delays; bumping remains the only cash-compensation case
One-page passenger rights summary on airline websites	Rule effective May 26, 2026; airlines need not comply until DOT announces paperwork approval	A short summary of bumping and delay policies on each airline's website, once compliance begins
Revised EU261 regulation	Signed September 16, 2026; published in the EU's Official Journal on October 2, 2026 as Regulation (EU) 2026/2202	Applies from October 23, 2027; until then, current EU261 rules govern
UK261	No change found to the UK text	£220, £350 or £520 when bumped from a UK departure

The cap increase came from a routine inflation review written into the rule itself. The October 2024 final rule set the effective date of January 22, 2025, and DOT then delayed enforcement until March 20, 2025.

The regulation calls for a review every two years, although DOT has not kept to that calendar: before 2025, the caps last changed in 2021. As of October 2, 2026, no 2026 adjustment had been published in the Federal Register, so $1,075 and $2,150 remain the caps. The 2024 adjustment did not appear until October 24 of that year, so check again before a trip later in 2026.

The formula compounds. It multiplies the current cap by the July CPI-U published by the Bureau of Labor Statistics divided by the August 2011 CPI-U (226.545), not by inflation since the last review. That is how $775 became $1,075 in the 2024 review. Applied unchanged to the July 2026 CPI-U of 333.918, it would give about $1,575 and $3,150, but those figures apply only if DOT publishes a rule adopting them.

How US bump compensation works

The federal oversales rule, 14 CFR Part 250, covers scheduled flights on planes with 30 or more seats, operated by US or foreign airlines, on nonstop segments departing a US airport. It does not cover a flight from London or Paris to the US. The payment depends on one thing the airline controls: how late the replacement flight it offers is planned to arrive, compared with your original flight.

compensation = the lower of (multiplier × one-way fare) or the cap

multiplier = 0  if the replacement arrives within 1 hour of the original
           = 2  if it arrives 1–2 hours late (domestic) or 1–4 hours late (international); cap $1,075
           = 4  if it arrives more than 2 hours late (domestic) or more than 4 hours late (international),
                or no replacement is offered; cap $2,150

"One-way fare" means the fare to your destination or first stopover (a planned break of more than four hours). Under the rule's definitions, it includes mandatory taxes and fees but not optional extras such as seat selection or bag fees. For an award ticket booked with miles, the fare is the lowest cash fare charged for the same class of service on that flight. The caps are limits airlines may apply, not targets; nothing stops an airline from paying more.

Worked examples

Illustrative example 1: a domestic one-way fare of $180, taxes included. A replacement flight arriving 90 minutes late pays 2 × $180 = $360. If the replacement arrives 2 hours 30 minutes late, the payment is 4 × $180 = $720.

Illustrative example 2: a domestic fare of $650 with a replacement arriving 3 hours late. Four times the fare is $2,600, so the cap applies and the airline may pay $2,150.

Illustrative example 3: a $900 one-way fare from the US to Europe, with a replacement arriving 3 hours late. Because international flights get a four-hour window for the 200% tier, the payment is 2 × $900 = $1,800, capped at $1,075. The same 3-hour delay on a domestic trip would fall in the 400% tier. Any one-way fare above $537.50 reaches the cap in either tier, because $1,075 ÷ 2 and $2,150 ÷ 4 both equal $537.50.

When you get no compensation

Part 250 lists the cases where a passenger who is involuntarily bumped is not owed compensation:

Check-in and ticketing. You did not meet the airline's contract-of-carriage rules on ticketing, check-in or acceptability for travel. DOT does not set a universal check-in deadline; each airline sets its own, and the overbooking notice airlines must post either states the deadline in minutes or says it is available on request.
Smaller aircraft. The airline substituted a smaller plane for operational or safety reasons. On planes with 60 or fewer seats, safety-related weight and balance limits also qualify.
A different cabin. You were seated in another section at no extra charge; if it is a cheaper cabin, you are owed a refund of the difference.
A replacement within an hour. The airline arranged transport planned to arrive within one hour of your original arrival time.

A cancelled flight is also not bumping, and the airline's required written notice says so. Once you are on board, a separate provision added under the 2018 TICKETS Act bars airlines from removing a passenger who checked in on time and whose boarding pass was scanned at the gate. The only exceptions are safety, security or health risks, or obscene, disruptive or unlawful behavior.

Volunteering versus being bumped

Airlines must ask for volunteers before bumping anyone. What they pay volunteers is negotiated, in any amount the passenger accepts, and the cash formula above does not apply. Before soliciting a volunteer, the airline must say whether that passenger is at risk of being bumped involuntarily, and what compensation it would owe in that case. That figure is the benchmark for any voucher offer at the gate.

If the offer is a voucher or free flight, the airline must disclose its material restrictions first: blackout dates, administrative fees, advance-purchase or capacity limits. For passengers bumped involuntarily, the airline must pay cash or a check on the day and at the place of the bumping. If the replacement flight leaves before payment can be prepared, the airline must send it within 24 hours. Airlines must also hand involuntarily bumped passengers a written statement of these rights and their boarding priority rules (the rule allows factors such as check-in time, fare paid and frequent-flyer status).

Accepting the payment may release the airline from further liability for the bumping. A passenger can instead decline it and pursue damages in court. This article is general information about consumer rules, not legal advice for a specific dispute.

Refunds when you are bumped

Part 250 already requires airlines to refund unused optional fees, such as a paid seat assignment or checked bag, to any passenger bumped voluntarily or involuntarily. Fees for services used on the replacement flight are not refunded. DOT's newer refund rule in 14 CFR Part 260 calls for a prompt and automatic refund and names "oversale situation" among the reasons an extra may go unused. Airlines have had to comply since October 28, 2024, according to DOT's August 2024 rule.

"Automatic" has a limit. When an extra other than a checked bag is unavailable to one passenger rather than to everyone on the flight, the airline's obligation begins once that passenger tells it the service was not provided and the airline confirms it. A bumped passenger should therefore tell the airline which extras were paid for. After that, "prompt" means within 7 business days for credit card purchases and 20 calendar days for other payment types.

The automatic ticket refunds in Part 260 are written for cancelled or significantly changed flights, and apply when you reject the alternative offered. A significant change means departing 3 or more hours earlier or arriving 3 or more hours later on a domestic itinerary (6 or more hours internationally), a different airport, more connections, or a downgrade. Neither Part 250 nor Part 260 expressly addresses the unused ticket of a bumped passenger who chooses to travel another way. In that case, ask the airline for a refund in writing and check its contract of carriage.

One refund protection has been narrowed for now. DOT is not enforcing the refund requirement when a flight is merely renumbered and the trip is otherwise not significantly changed. It first paused enforcement in December 2025 and extended the pause to July 7, 2027, while it works on a rulemaking to redefine a cancelled flight. No proposed text had appeared in the Federal Register as of October 2, 2026.

Two other federal actions are often described as new passenger rules. DOT withdrew its December 2024 advance notice on requiring compensation, meals and lodging for significant disruptions, so no such rule is coming from that process.

Separately, a final rule effective May 26, 2026 requires airlines to file and post a one-page summary of passenger rights, including overbooking and denied boarding. Compliance waits on a further DOT notice announcing approval under the Paperwork Reduction Act. That notice had not been published as of October 2, 2026.

Flying home: EU261 and UK261

On the return leg, Part 250 does not apply at all, because it covers only flights leaving the US; the European rules do. EU Regulation 261/2004 covers flights departing an EU airport on any airline, and flights into the EU on an EU airline, according to the European Commission's Your Europe guide to air passenger rights. The UK kept its own version after Brexit. The UK text of Regulation 261/2004 covers departures from the UK on any airline, flights into the UK on a UK or EU airline, and flights into the EU on a UK airline.

Route (one leg)	US Part 250	EU261	UK261
New York to Paris on a US airline	Yes	No	No
New York to Paris on an EU airline	Yes	Yes, unless you already received benefits or compensation and assistance in the US	No
Paris to New York on any airline	No	Yes	No
London to New York on any airline	No	No	Yes

Both European regimes work differently from the US one. Payment is a fixed amount by flight distance, not a multiple of the fare: €250, €400 or €600 under EU261, and £220, £350 or £520 under UK261. Transatlantic flights are well over 3,500 km, so they fall in the top band.

If the airline reroutes you and you arrive within four hours of the original schedule on such a flight, it may cut the payment by 50%. For short and medium flights the thresholds are two and three hours.

The airline must also offer a choice between a refund within seven days and rerouting, plus free meals, refreshments and, if needed, a hotel and transport to it. Compensation is paid in cash, by bank transfer or by check; vouchers are allowed only with your signed agreement. Check-in rules are more specific than DOT's: you must check in by the time the airline gave in writing, or, if it gave none, 45 minutes before the published departure.

Illustrative example 4: bumped from Paris to New York and rerouted on a flight arriving 3 hours late, a passenger could receive €300, which is €600 reduced by half. If the reroute arrives 5 hours late, the full €600 is due. The same pattern under UK261 from London gives £260 or £520.

What the EU261 revision changes, and when

After 13 years, the overhaul passed. Parliament approved the conciliation text on July 7, 2026 by 646 votes to 12, the Council adopted it on July 13, and the final act was signed on September 16, 2026. The European Parliament's procedure file lists it as completed, and it was published in the Official Journal on October 2, 2026 as Regulation (EU) 2026/2202. Article 3 of the regulation says it applies from October 23, 2027, in line with the European Commission's statement that the revised rules apply 12 months after publication.

According to the Parliament's summary of the adopted text, the €250/€400/€600 amounts and the right to compensation for denied boarding stay. Once the rules apply, the changes most relevant to bumping are these:

Airlines may no longer deny boarding on a return flight because the passenger skipped the outbound flight.
A name misspelling flagged at least 48 hours before travel must be corrected free and is not a ground to deny boarding.
Airlines must tell passengers digitally how to claim, within four days of the end of the journey. Claims must be filed within nine months of the departure date, and airlines must pay or explain a refusal within 30 days.
Vouchers stay voluntary, and unused balances go back to the passenger's bank account when they expire.

None of this applies yet, and UK261 is not affected by the EU revision.

Frequently asked questions

Is it legal for airlines to overbook flights?

Yes. Under 14 CFR 250.11, airlines must post a notice at their US ticket counters stating that "airline flights may be overbooked" and that no one will be denied a seat until volunteers have been asked for first. The same part requires airlines to keep the number of passengers bumped against their will to "the smallest practicable number," and reporting airlines must file quarterly counts of denied boardings on flights originating in the US.

Does the airline have to give me a meal or hotel if I'm bumped in the US?

Not under federal rules. Part 250 sets out cash compensation and refunds of unused extras, but it contains no requirement to provide meals, a hotel or ground transport to a bumped passenger. That depends on airline policy: under 14 CFR Part 259, airlines flying planes with 30 or more seats must have a customer service plan that covers how they handle "bumped" passengers, and must post their contract of carriage on their websites. Check both before accepting a rebooking for the next day.

Does the airline have to rebook me on another airline's flight?

Not under federal rules: Part 250 does not require a rebooking on any particular flight, but your payment tier depends on when the "alternate transportation" the airline offers at no additional charge is planned to arrive, and the required passenger notice says that can be a confirmed seat "by any scheduled airline licensed by DOT." So a seat on a rival that the airline books for you can lower the payment to 200% if it is planned to arrive within two hours of your original flight (four on international trips), or remove it if it is planned to arrive within one hour. Whether an airline looks beyond its own flights depends on its contract of carriage: Delta's US contract, Rule 20, for example, promises its next flight with space available at no additional cost and leaves other carriers to "Delta's sole discretion." You can ask for a competitor's earlier flight, but federal rules do not oblige the airline to agree.

What if I'm bumped on a flight to or from Canada?

Canada's rules cover flights to, from and within Canada, including connecting flights, under section 86.11 of the Canada Transportation Act. When the bumping is within the airline's control and not required for safety, the Air Passenger Protection Regulations require at least CAD 900, CAD 1,800 or CAD 2,400 if you reach your ticketed destination less than 6 hours late, 6 to under 9 hours late, or 9 or more hours late. The airline must pay within 48 hours of the denied boarding, in money unless you agree in writing to another form that is worth more and does not expire. Before the replacement flight, it must also provide food and drink, a means of communication and, for an overnight wait, a hotel or comparable accommodation with transport there and back to the airport, free of charge. It also may not remove a passenger already on board unless safety requires it.

Is there a deadline to claim EU261 compensation?

There is currently no single EU deadline: according to the European Commission's Your Europe guide, the time limit for taking an airline to court is set by each EU country's national limitation rules. Claim from the airline that operated the flight, which may not be the one that sold you the ticket. If it does not reply within two months, or you are not satisfied with the reply, you can complain to the relevant national authority. The nine-month claim window in the revised regulation applies only from October 23, 2027.

What to do at the gate if bumped

Before volunteering, ask the agent whether you would otherwise be bumped involuntarily and what the airline would owe you; compare any voucher with that figure.
If you are bumped involuntarily, ask for the written denied boarding statement and note the planned arrival time of the replacement flight. That time decides the 0%, 200% or 400% tier.
Ask for payment by check or cash; the airline must offer compensation without waiting for you to ask. If offered a voucher, ask about expiry, blackout dates and fees, and remember you can refuse it.
Keep your receipt or e-ticket showing the one-way fare including taxes, and tell the airline which paid extras you did not use, since for a problem affecting only you that notice starts the refund obligation.
Leaving the EU or UK, ask for the written EU261 or UK261 notice, which is separate from any US payment, and keep meal and hotel receipts.
If the airline does not pay, file a complaint with DOT's Office of Aviation Consumer Protection for a US departure, or with the national enforcement body named in the EU or UK notice for a European departure.