More airline passengers getting bumped

Based on the numbers, America’s major airlines are doing a better job of getting us to our destinations on time and with our luggage in tow -- assuming we can get on the flights.

Not only is the rate of lost luggage lower than it has been in years, the on-time performance for the nation’s biggest airlines reached a record 88.6% in November, the best rate since the Bureau of Transportation Statistics began keeping track of the numbers in 1987.

But there is a growing trend that spells trouble for travelers: More passengers are getting bumped from flights.

In the first nine months of 2009, the rate of ticketed passengers who were denied boarding was 1.22 per 10,000 travelers, compared with 1.12 in the same period in 2008.

That equates to nearly 54,000 passengers involuntarily bumped in the first nine months of 2009, up from about 47,000 fliers in the same period in 2008.

The bumping increase is largely a result of the slumping economy, which has reduced airline demand and prompted carriers to eliminate flights and fill planes to the max -- or beyond. Indeed, it is no secret that airlines routinely overbook planes because they expect that some passengers won’t show up for a flight.

“The carriers overbook to account for the no-show factor,” said David Castelveter, a spokesman for the Air Transport Assn., a trade organization of the nation’s largest airlines. “Airline seats are perishable, and once the seat has left the terminal the opportunity to sell it is gone.”

How much airlines overbook varies by carrier, route and even the makeup of the passengers.

Business-class passengers who are flying for meetings or conferences are more likely to miss a flight because of scheduling conflicts than a family that has been planning for months to visit grandma for the holidays. Thus, airlines may overbook more seats on commuter flights heavily favored by business travelers.

“It literally varies on a flight-to-flight, day-to-day basis,” said Tim Winship, publisher of www.frequentflier.com, a website that reports on the industry’s frequent-flier programs. “It’s a dynamic formula rather than a set formula.”

Overbooking is not an exact science, and when airlines miscalculate the “no-show factor” they must bump passengers from full flights.

Still, you have rights if the flight you are scheduled to board has been overbooked.

Airlines are required by federal law to first try to get passengers to voluntarily give up their seats. That is when you can make the most of the situation.

The airline gate agents will initially try to entice passengers to give up seats with an offer of a free ticket on a later flight plus cash or a voucher for a future flight.

Passengers can haggle with the gate agents, Winship said. You can even ask for a free meal voucher or a pass for the airlines’ VIP lounge in addition to a free airline ticket. Don’t be surprised if the agent tries to low-ball you. The airlines are trying to spend as little as possible to get you to your destination.

But don’t get too greedy in your demands, Winship warned, because the gate agents may reject your offer, knowing that other passengers may be willing to give up their seats for less.

“It’s greed versus fear,” Winship said.

Things get a bit more complicated if an airline can’t get enough passengers to give up seats voluntarily.

By law, if the airline denies you a seat because of overbooking but arranges to put you on another flight that arrives within an hour of your original arrival time, the carrier is not obligated to compensate you at all.

If, however, you are bumped and the airline gets you on a flight that arrives within two hours of your original arrival time, the carrier must compensate you with 100% of the value of the ticket, up to a maximum of $400.

If the airline bumps you and can’t get you on a flight that arrives within two hours of your original arrival time, the carrier must compensate you double the value of your original one-way fare, up to $800.

The rules vary for international flights.

You can haggle with the airlines about getting that compensation in cash or in airline credits.

So who is most likely to get bumped?

Under federal law, airline carriers can establish policies to determine who is first to be bumped so long as the rules do not “cause any unjust or unreasonable preferences or prejudice or disadvantage in any respect whatsoever.”

The law goes on to say that the airlines can base their bumping policy on how early you check in for a flight, whether you have an assigned seat, how much you paid for the ticket, whether you are a frequent flier, if you are an unaccompanied minor or are traveling with family members.

Based on those criteria, industry experts say airlines are most likely to bump you if you paid the cheapest fare, are flying alone and you show up at the gate at the last minute.

On the other hand, business-class or first-class passengers who have a reserved seat are unlikely to get bumped, said Rick Seaney, founder of www.farecompare.com, a website that keeps tracks of airline trends.

“If you have VIP status or loyalty status, you are golden,” he said.

Baggage policy lifts Southwest

American Airlines followed the lead this week of United, Continental and Delta airlines in raising baggage fees to $25 for the first bag and $35 for the second, with discounts for passengers who pay online.

(For information on luggage fees and weight limits on more than 100 airlines, check out www.luggagelimits.com, a website created by a Connecticut boarding school teacher to help his students keep track of travel costs.)

Meanwhile, Southwest Airlines, the economy carrier that reminds the world whenever possible that it charges nothing for the first two checked bags, posted a fourth-quarter profit Thursday of $116 million, while several other major carriers have reported losses or smaller profits.

Southwest Chief Executive Gary Kelly appeared on CNBC this week and credited part of the airline’s financial success to the no-baggage-fee policy.

He also took another shot at fee-charging airlines.

“I just cheer on our competitors,” Kelly said. “I hope they charge a hundred bucks a bag. We’ll take all the customers they want to give us.”

hugo.martin@latimes.com