Delta has implemented the increases following the media storm from United's treatment of passenger David Dao, who was told to give up his seat on an April 9 flight from Chicago to Louisville to make way for airline crew. American Airlines updated its rules to say that no passenger who has boarded the plane will be removed to give the seat to someone else.
"We will continue to review all aspects of this disruption and develop a plan to avoid a similar situation in the future, ensuring we deliver on the reliability and service you expect and deserve from Delta", Bastian said.
How much did Delta pay out in cash to people who volunteered to miss their flight, the case the new limit applies to, in 2016? This can translate into millions of dollars a day as an airline like Delta runs over 4,800 flights daily.
For the past few years, Delta Air Lines has surpassed its competition, United Airlines and American Airlines, in bumping far fewer passengers involuntarily while persuading more passengers to voluntarily fly standby.
The practice has been questioned, however, since video of the United Express incident went viral.More news: Nokia 9 and Nokia 8 design sketches reveal thin bezels, dual cameras
The dragging has turned into a public-relations nightmare for the entire industry, not just United, and led to calls from politicians and consumer advocates to suspend or ban overbooking.
In an email to some customers, Delta's CEO Ed Bastian said he's heard for many customers who say they were let down by the airline.
A company spokesperson confirmed to CNNMoney that supervisors were previously only able to offer up to $1,350, but Delta notified them on Friday that they'll now be able to offer up to $9,950 in compensation.
"There were so many people at the airport who were heading to weddings, people who were going to funerals, people who were going to see their dying parents, who had real reasons to go", said Ms Bloom "And of course, we had a reason to go - we wanted to see our family - but it wasn't a life-or-death situation". If Delta paid $9,950 to every person it bumped involuntarily past year, that would total $12 million.