Airlines Are Backing a Startup That Could Fix the Overbooking Problem

Volantio Inc., the Atlanta-based startup that helped United Airlines Inc. manage its overbookings in the wake of the Dr. Dao scandal last summer, is telling investors it’s cracked a seemingly impossible code: generate more money for airlines while improving customer satisfaction.

Eight months into its product lifespan, the company—which helps airlines preventatively rejigger inventory by offering buyouts to flexible passengers—closed a $2.6 million series B funding round in February. The monetary sum is less impressive than the venture capitalists contributing to it: On board are three of the world’s biggest aviation investors, which rarely join hands: International Airlines Group (IAG), JetBlue Technology Ventures (JTV), and Qantas Ventures.