Delta Air Lines increases passenger compensation to $13k after dragging debacle

An internal memo has revealed Delta Air Lines is boosting compensation sevenfold to a maximum of AU $13,135 for passengers who give up their seats on overbooked flights.

The memo, obtained by the Associated Press, shows gate agents will be able to offer up to $2640, up from $1056, and their supervisors can offer a maximum of $13,135, up from $1780.

Other airlines are reportedly also reviewing their compensation policies, according to AP.

The changes come days after a passenger was filmed being dragged off a United Airlines plane.

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Airport officers pulled Dr David Dao from his seat after he and three others were ordered off an overbooked Chicago-Louisville flight.

The 69-year old doctor had refused to disembark and was filmed screaming as he was dragged off the plane.

He suffered a broken nose and concussion and lost two teeth as a result of the incident, which sparked international outrage and widespread criticism of overbooking.

Government data analysed by AP shows that in 2015 and 2016, Delta paid an average of $1476 for passengers who volunteered to give up their seat. Southwest Airlines paid $1000, United $746 and American Airlines $731.

The practice is common and legal in both the US and Australia.