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IATA: The Cost Of Denied Boarding

Airport boarding gate, closed.Airlines are being urged to make an effort to advise passengers of what needs to be done paperwork-wise prior to arrival at the airport, as IATA points out that a single denied boarding likely costs an airline between USD2300 and USD16000, depending on how well it was handled.

Mahir Sahin, IATA’s head of timatic and passenger experience solutions, says this figure takes into account the approximate time a denied boarding case consumes, as well as the potential for lost future business. It also includes delays and legal exposure, though IATA did factor in that most denied boardings occur at the gate and therefore result in no delay, and that most passengers typically won’t take legal action considering that it’s clearly their responsibility.

. . . Check-in Key

The key issue, says IATA, is that by the time a passenger reaches check-in, airlines have already lost, with Sahin adding that a passenger cannot realistically get a missing visa three hours before departure, and an expired passport cannot be renewed at the airport quickly.

“The actual work that prevents denied boarding happens days, weeks, if not months earlier while the passenger still has time to act.”

Sahin recommends a series of moves for airlines, starting with telling passengers exactly what they need at check-in, and agents may also like to ensure their clients are correctly prepared. “Specificity is everything here,” he says. “The ‘Ensure you have valid documents’ gets ignored because every passenger thinks their passport is valid as long as it’s not expired.”

It also pays to inform passengers who have some requirements to meet what needs to be done, rather than issuing blanket reminders, and to increase off-airport check-in rates, as he says this is the last digital moment airlines can control before the denied boarding is happening at the airport.

“All of these steps share a common objective; put the right information in front of the right passenger at the right moment where they can still make a change,” says Sahin.

“If [airlines] do that consistently, the denied boardings as well as the cost associated with each will go down and turn into a rare exception.”

. . . Agents

While passengers are ultimately responsible for their own documentation, any guidance agents can offer may also help prevent clients from being denied boarding.

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