Delta Increases Compensation for Overbooked Flights

A Delta Airlines (NYSE: DAL) spokesperson informed CNN Money that supervisors will now offer up to $9,950, up from $,1350, for passengers who are bumped from overbooked flights. Gate agents may now offer up to $2,000, up from $800. The changes will benefit business and leisure travelers. More flyers will consider Delta as an option among the big carriers. This will contribute to seat shortages where travelers can cash in. If you’re a small business traveler and can score a quick $2000 on a return flight, do it! That is free money for future business travel or for vacation.

United has not announced any changes to compensation for travelers on overbooked flights. American Airlines (NYSE: AAL) spokesperson, Ross Feinstein, said American will work “to ensure we set compensation amounts properly … to obtain the correct number of volunteers.”

Delta’s quick response to the PR nightmare that United (NYSE: UAL) is suffering shows that management is in a clear position to manage upside risk. Some Wall Street analysts have upgraded Delta to “Strong Buy” because of Delta’s aggressive action.