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Why would airlines give away free tickets?

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Why would airlines give away free tickets?

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More importantly how does it work?! First, you must understand that all major airlines overbook their flights. For example, if an American Airlines plane carries 100 people, they will sell 110 tickets, assuming that about 10% of them won’t show up. A lot of people actually miss their flights because they arrived at the airport late and missed the plane, were too ill to travel, or simply changed their mind at the last minute. Since airlines want to maximize their profit while simultaneously not piss people off, they have devised a brilliant plan. If a flight is overbooked and everyone shows up (or at least one person beyond the plane’s seating capacity), they have to kick people off the plane. In order to keep passengers satisfied, they offer financial incentives. Just before boarding, the airline representatives will announce that the plane is oversold and ask if anyone wants to step off. People with the most flexible schedules will agree and as a “thank you” the airline will typically

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