Etihad downgrades passenger from business to economy despite full payment - Here's what to do in case; how to get refund
Etihad Airways has recently faced criticism online after passengers claimed that they were downgraded from business class to economy without their knowledge. Reportedly, the passengers paid full price for their seats but were relocated to economy seats due to high demand.
An alleged apology letter issued by the airline has emerged on X. According to it, the company offered a 75% refund to the affected flyers.
“Nice to know you can pay full price for a business class seat on @etihad, and when you show up at the airport they can simply “downgrade" you to economy because they sold more seats than they have (not sure how that’s my problem). Done flying these guys," a post read on X.
The incident has raised questions about policies regarding airline overbooking and what passengers can do in such situations.
Overbooking is reportedly the most common reason for involuntary downgrades among Airlines. Airlines may sell more tickets than available seats to maximise revenue. Typically, it is done to ensure flights remain full even if some flyers cancel or miss their flight.
In case all passengers show up, some may be downgraded.
In simple terms, downgrade means moving a passenger to a lower class seat than what was originally booked for.
In some cases, downgrades may happen due to crew requirements. If designated crew rest areas remain unavailable, a crew member may be required to use a first or business-class seat for breaks or rest. Such a situation may lead to passenger downgrades.
During downgrades, affected passengers should document everything carefully and make an appropriate compensation claim. One must obtain a written reason for the downgrade and keep applicable records such as images of the new seat, the boarding pass, and any further communication from the company.
According to airline regulations, compensation for involuntary downgrades can be somewhere between 30-75 per cent of the ticket price, accordingly.
Under rules by the Directorate General of Civil Aviation (DGCA), passengers are entitled to a refund of the full value of the ticket, including tax. For domestic flights, about 75% of the total ticket cost (including taxes) and for international flights, 30-75% of the total ticket cost (as per flight distance) should be provided by the airlines.
Passengers can keep the applicable refund and continue with the journey in the downgraded cabin or decline to travel and get a full refund of the ticket.
For further assistance, such as if an airline refuses or offers only vouchers, passengers can escalate the matter via airsewa.gov.in
Sneha Biswas specialises in covering entertainment and pop culture, with a specialisation on Bollywood, Hollywood, OTT platforms, K-pop, K-dramas, and major developments in the US entertainment industry. She believes in telling stories that balance speed with substance, and in making entertainment journalism contextual, culturally aware, and reader-first rather than purely reactive.<br><br> With over six years of experience in digital media, Sneha currently serves as a Deputy Chief Content Producer at Live Mint. She has spent more than three and a half years with the HT Group and returned to the organisation in February 2025, joining Live Mint to uplift the entertainment section. Over the past year, she has been closely involved in entertainment coverage including breaking news, explainers, trend reporting, box office reports and analysis for the audience.<br><br> Sneha is Google News certified, having completed training focused on newsroom best practices, digital reporting, and SEO-driven content strategies. Her work reflects a strong understanding of audience behaviour, search trends, and the evolving consumption patterns of entertainment news across formats.<br><br> Prior to her current role, Sneha has worked across multiple content and editorial functions within digital newsrooms, building expertise in content planning, editing, and real-time coverage. Her professional interests lie at the intersection of entertainment, internet culture, and global pop trends.<br><br> Working for the National city team, Biswas closely follows global entertainment movements while maintaining a strong pulse on what is happening in India.
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