Airlines calculate expected "no show rates for each route and class of ticket, but for simplicity, assume that there is a 0.0995 probability that a passenger with a reservation will not show up for the flight (based on data from the IBM research paper "Passenger-Based Predictive Modeling of Airline No-Show continued I
If the flight is not over booked, the airline loses revenue from empty seats, but if too many seats are sold, the airline loses money from the compensation it must pay to the bumped passengers. Delia can overbook by acepting more reservations than there are seats available. Transcribed image text: Overbooking Flights Della Airlines Flight 2673 from New York's JFK airport to San Fran cisco's SFO airport uses the Boeing 757-200 with 180 seats available for passengers.