Denied boarding compensation is a payment a carrier owes a passenger involuntarily bumped from a confirmed flight (usually due to overbooking), calculated under EU261 in the EU, UK261 in the UK, and 14 CFR Part 250 in the United States.
Involuntary denied boarding starts with a call for volunteers; if there are not enough, the carrier bumps passengers per its priority rule and owes them. EU261 pays fixed sums by distance (roughly EUR 250 to EUR 600); DOT Part 250 pays a multiple of the one-way fare capped at a set ceiling. Voluntary bumps get whatever the airline and passenger agree (usually a voucher). Support desks need to log which class of denied boarding applies, because the payout math differs. Verify against primary source at build time.
The most-argued edge cases are downgrades and “no-fault” bumps (weight and balance, aircraft substitution). Downgrades are compensated on a percentage of fare (roughly 30 to 75% under EU261 by distance). Weight-and-balance bumps still trigger denied-boarding compensation in most regimes.
Common questions
What is the difference between voluntary and involuntary denied boarding?
Voluntary means the passenger accepts an offer (usually a voucher) to give up the seat. Involuntary means the airline bumps them; only involuntary bumps trigger the fixed compensation.
Does denied boarding apply if my flight was cancelled?
No. Denied boarding is specifically for confirmed passengers refused seats on a flight that operates. A cancellation triggers cancellation compensation instead.