What does overbooking refer to in airline operations?

Overbooking in airline operations refers to the practice of selling more seats on a flight than the actual number of seats available. This strategy is employed to mitigate the financial losses incurred from no-shows and cancellations, where some passengers do not turn up for their flights. The idea is that not every passenger who books a ticket will actually show up, allowing airlines to maximize revenue by filling as many seats as possible.

The correct interpretation of overbooking can often be phrased as selling more seats than available seats. This highlights the airline's proactive approach to managing the unpredictability of passenger attendance and ensuring flight profitability. When passengers do show up, the airline may face situations where they have to deny boarding to some despite holding confirmed reservations, often leading to compensatory measures.

In this context, while the concept of having more passengers than seats becomes relevant to describe the operational outcome of overbooking, the fundamental definition centers primarily on the practice of selling more tickets than the physical capacity of the aircraft allows.