Traffic delay has been an important issue for the government and industry. However, most of the previous research emphasized on measuring the reliability of transportation service. There is no research in the area of delay compensation. In this research, the feasibility of introducing delay compensation into the frequently delayed passenger flights is studied from the marketing point of view. In addition, with the Logit choice model and revenue maximization, the optimal delay compensation is developed. The results show that whether the passengers are sensitive to price or travel time is the key factor to be considered. As to the amount of money to be compensated for flight delay, it is suggested that low compensatory policy should be adopted when the flight delay occurs frequently. On the contrary, when the flight is relatively punctual, the higher compensatory policy will be better.