Because it’s worth it. It’s really that simple.
The airlines have done their homework, they did the math. The amount that they pay to passengers that get bumped is less than the potential revenue lost by having empty seats.
And it’s not like you have much of a choice, either. There are half-a-dozen airlines left, and they don’t all service every city. So you’ll probably have a choice of 2 or 3 airlines at most, who all do the same thing.
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