United Airlines to offer up to $10,000 for forfeiting seat

United Airlines has said it will offer up to $10,000 to passengers who give up seats on overbooked flights.

The airline said it will cut back on overbooking and develop an automated system to gauge customers' interest in voluntary, compensated bumping at check-in.

The change comes as part of a review following an inquiry set up after a passenger was dragged off a fully booked United flight this month, ABC News reported on Thursday.

David Dao lost two front teeth and suffered a broken nose when he was removed from the Chicago-Louisville flight to make room for crew members in the April 9 incident.

The incident caused outrage and widespread condemnation of the airline. The shocking footage was shared and watched by millions online.

The offer by United comes after rival Delta Air Lines Inc said it will pay as much as $9,950 compared with a previous cap of $1,350 for volunteers to get off overbooked flights.

The latest incident to hit United Airlines's reputation came on Wednesday when it announced an investigation into the death of a giant rabbit which was being transported on one of its planes.