United Airlines to raise payment for displaced passengers to A$13,395

United Airlines will raise the payment to passengers who give up their seats on overbooked flights to A$13,395 ($US10,000) as it deals with fallout of a viral video which showed a passenger being violently dragged from his seat.

The airline was forced to do a review into the mistakes which led to the incident on April 9 on a United Express plane to Chicago.

Doctor David Dao, 69, was hospitalised after his violent removal by three airport security officers.

In addition to the extra compensation, the airline said it will reduce the amount of overbooking on flights and no longer require already seated customers to give up their seats.

United has not confirmed if ticket sales have dropped since the incident, but admitted it could be damaging.

“I breached public trust with this event and how we respond,” CEO Oscar Munoz said.

“People are upset, and I suspected that there are a lot people potentially not flying us.” United had already announced it will no longer call police to remove passengers from overbooked flight and will require airline crews travelling for work to check in sooner.

In addition to the upped payment, displaced passengers and crew members will be put on other airlines or have a car arranged to transport them to their destinations.

Gate agents will also be given more training on how to deal with oversold flights.

Upon releasing the report, Mr Munoz apologised again and faulted his initial response to the incident.

“That first response was insensitive beyond belief,” Mr Munoz said.

“It did not represent how I felt…(I) got caught up in facts and circumstances that weren’t initially clear.”