Delta hikes payouts for overbooked fliers

Delta Air Lines increased the payouts its airport agents can offer passengers on overbooked flights, moving to prevent a public relations nightmare similar to the one plaguing United.

Customer service agents will be able to offer passengers as much as $2,000 when they're asked to give up a seat on an oversold flight, up from $800, according to a memo seen by Bloomberg. Managers can offer as much as $9,950, more than seven times the previous cap of $1,350, the memo dated April 13 says.

The new policies come in the wake of a controversy that enveloped rival United this week, after law enforcement officers dragged a passenger off a United Express flight from Chicago to Louisville, Ky.

The passenger, David Dao, already was seated on the plane and refused to give up his seat to make room for a United crew member who needed to fly. The incident made worldwide news and led to questions about why the airline didn't simply offer Dao more money to leave the plane.

Delta spokesman Anthony Black confirmed the authenticity of the memo, but declined to comment further. United earlier this week said it would review its policies regarding overbooked flights and announce results of the review by April 30.

United reiterated its plan Friday after the contents of the Delta memo were reported.

The memo also gives customer service agents tips on how to best deal with oversold flights, including looking for passengers with other options for non-stop flights.

Agents are advised to contact managers if compensation above $2,000 is needed, the memo says. It does not address the United controversy.

The airline is changing policy as it deals with its own bad publicity. An April 5 storm in Atlanta shut down Delta's operations during heavy spring break travel, with delays made worse by a breakdown in the airline's crew location and assignment systems, CEO Ed Bastian said in an email to customers. About 4,000 flights were canceled in the wake of the storm.