Air Carrier liability for baggage

Claims arising from lost, damaged, or delayed baggage represent a significant aspect of airlines’ legal liability. Such claims may give rise to financial demands and disputes with passengers, in addition to the need for clear procedures to ensure that baggage claims are handled in accordance with applicable international conventions and the governing law.

The 1999 Montreal Convention for the Unification of Certain Rules for International Carriage by Air is one of the principal legal frameworks governing air carrier liability in international carriage. The Convention establishes uniform rules concerning liability for baggage, limits of liability, claims procedures, and the time limits applicable to legal proceedings.

These rules are of particular importance to airlines, as the handling of baggage claims extends beyond operational considerations and involves a range of legal issues, including determining the basis of liability, assessing the nature and extent of the damage, applying the applicable limits of liability, preserving relevant evidence, and complying with statutory and contractual time limits.

I. Legal Framework Governing Air Carrier Liability for Baggage

The Montreal Convention addresses air carrier liability for baggage through several provisions, most notably Articles 17, 19, 22, 23, 24, 31, and 35.

Article 17(2) establishes the carrier’s liability for damage resulting from the destruction, loss of, or damage to checked baggage, provided that the event which caused the damage occurred while the baggage was in the carrier’s charge.

With respect to unchecked baggage, including personal items retained by the passenger, the carrier’s liability under the Convention is generally contingent upon proof of fault on the part of the carrier or its servants or agents.

Accordingly, determining an airline’s liability requires, as a first step, identifying the nature of the baggage concerned, the stage of the carriage during which the relevant event occurred, and the circumstances that resulted in the loss, damage, or other alleged harm.

II. When Is an Airline Liable for Lost Baggage?

Under Article 17(2) of the Montreal Convention, the carrier is liable in respect of checked baggage where the event that caused the destruction, loss, or damage occurred while the baggage was in the carrier’s charge.

The carrier’s liability does not, however, extend to damage attributable, to the extent established, to the inherent defect, quality, or vice of the baggage itself.

This makes a proper factual and legal assessment of each claim essential. A baggage loss report, in itself, does not necessarily establish all elements of the passenger’s claim. The relevant circumstances should be examined, including the baggage acceptance and delivery records, the passenger’s itinerary, baggage tracking data, incident reports, and supporting documentation submitted by the passenger.

This is particularly relevant to airlines’ legal and claims departments, as the assessment of a baggage claim should begin with determining the legal basis and scope of liability before proceeding to quantify the alleged loss or damage.

III. When Is Baggage Considered Lost?

Article 17(3) of the Montreal Convention establishes an important time-based criterion.

Where the carrier admits the loss of checked baggage, or where checked baggage has not arrived at the expiration of 21 days from the date on which it ought to have arrived, the passenger is entitled to enforce the rights arising out of the contract of carriage.

This provision has significant practical implications for airlines in managing baggage files that initially arise as delayed baggage cases and may subsequently become claims for lost baggage once the applicable legal conditions are satisfied.

Accordingly, airlines should maintain clear internal procedures addressing, among other matters:

• The date on which the baggage report was registered.
• The flight details and scheduled arrival date.
• The status of the baggage tracing process.
• The documentation submitted by the passenger.
• The point at which the case is treated as a lost baggage claim under the applicable legal framework.
• The methodology used to assess and settle the claim.

IV. What Is the Maximum Liability of the Air Carrier for Baggage?

Article 22(2) is one of the key provisions governing baggage claims.

Under the original text of the Montreal Convention, the carrier’s liability for the destruction, loss of, damage to, or delay in the carriage of baggage was limited to 1,000 Special Drawing Rights (SDR) per passenger.

This limit was subsequently revised in accordance with the periodic review mechanism established under Article 24.

The applicable limits have developed as follows:

• 1,000 SDR under the original Convention limit.
• 1,288 SDR effective as of 28 December 2019.
• 1,519 SDR effective as of 28 December 2024.

The International Civil Aviation Organization (ICAO) announced that the revised limit of 1,519 SDR became applicable on 28 December 2024.

Accordingly, this is the current limit to be considered when assessing claims falling within the scope of the Convention, subject to the applicable law and the specific circumstances of each claim.

V. Does 1,519 SDR Represent an Automatic Compensation Amount for Every Passenger?

No.

This is one of the key distinctions that should be clearly understood when managing baggage claims.

The amount of 1,519 SDR represents a limit of the carrier’s liability, rather than a fixed or automatic compensation amount payable to every passenger whose baggage has been lost.

In other words, the mere loss of baggage does not automatically entitle a passenger to the full amount of 1,519 SDR.

A distinction must therefore be made between:

the actual loss or damage established by the passenger

and

the maximum limit of the carrier’s liability under Article 22(2).

The Montreal Convention liability regime does not operate on the basis of an automatic fixed payment in every baggage loss case. Rather, the amount recoverable is linked to the loss or damage established, subject to the applicable limit of liability.

This distinction is particularly relevant to claims management and settlement within airlines, as it directly affects the assessment of supporting documents and the valuation of passenger claims.

VI. Special Declaration of Interest in Delivery of Baggage

Article 22(2) does not merely establish the general limit of liability.

It also allows a passenger, at the time the checked baggage is handed over to the carrier, to make a special declaration of interest in delivery at destination, subject, where applicable, to the payment of a supplementary sum.

In such circumstances, the carrier may be liable for an amount not exceeding the amount declared, unless it proves that the amount exceeds the passenger’s actual interest in delivery at destination.

This provision is particularly relevant to airlines because it creates a direct connection between baggage acceptance procedures and the potential scope of the carrier’s liability.

It also highlights the importance of the carrier’s conditions of carriage and internal procedures governing special declarations, applicable supplementary charges, and the recording and retention of relevant information within the airline’s operational and claims records.

VII. Air Carrier Liability for Delayed Baggage

Air carrier liability is not limited to cases involving lost or damaged baggage.

Article 19 of the Montreal Convention governs liability for damage caused by delay in the carriage by air of passengers, baggage, or cargo.

Under this provision, the carrier is liable for damage occasioned by delay, subject to the carrier’s ability to establish that it and its servants and agents took all measures that could reasonably be required to avoid the damage, or that it was impossible for them to take such measures.

Accordingly, baggage claims should be appropriately classified and distinguished, including:

Lost Baggage Claims

Delayed Baggage Claims

Damaged Baggage Claims

Each category may involve different factual circumstances, evidentiary requirements, and legal considerations.

VIII. The Importance of Documentation and Evidence in Baggage Claims

One of the most important aspects of baggage claims management is identifying and preserving the evidence necessary to establish the underlying incident and assess the value of the alleged loss.

Depending on the nature of the claim, relevant documentation may include:

• Baggage tags.
• Flight records and travel documentation.
• Baggage loss or delay reports.
• Baggage tracking system records.
• Baggage tracing and search records.
• Correspondence with the passenger.
• Documentation establishing the contents and value of the baggage.
• Invoices and receipts.
• Documentation relating to expenses incurred as a result of delayed baggage, where relevant to the claim.

From a legal perspective, maintaining a structured system for documenting and preserving such information can assist airlines in assessing claims consistently and reducing disputes arising from incomplete, inconsistent, or conflicting information.

IX. Time Limits for Baggage Claims

The Montreal Convention establishes specific time limits for making complaints concerning baggage.

In the case of damage to baggage, a complaint must be made to the carrier as soon as the damage is discovered and, at the latest, within seven days from the date of receipt of the baggage.

In the case of delay, the complaint must be made within 21 days from the date on which the baggage was placed at the passenger’s disposal.

Article 31 further provides for the legal consequences of failing to submit a complaint within the prescribed periods, subject to the exceptions provided by the Convention.

From an operational perspective, this further demonstrates the importance of maintaining accurate internal records of the date on which the complaint was received, the date of the relevant event, and the classification of the claim.

X. Limitation Period for Legal Proceedings

In addition to the applicable complaint periods, Article 35 of the Montreal Convention establishes a limitation period for claims for damages.

Under Article 35, the right to damages is extinguished if an action is not brought within two years, calculated in accordance with the rules established by the Convention.

Accordingly, an airline’s legal department should distinguish between:

the time limit for submitting a complaint to the carrier

and

the limitation period applicable to judicial proceedings.

These are separate procedural stages and may have different legal consequences.

XI. The Impact of Periodic Revisions of Liability Limits on Airlines

The Montreal Convention incorporates a mechanism for the periodic review of its liability limits.

Article 24 provides for a review of the limits at five-year intervals, with the purpose of considering adjustments based on specified economic indicators.

In the most recent review, ICAO announced an increase in the baggage liability limit from 1,288 to 1,519 SDR, with the revised limit becoming effective on 28 December 2024.

This mechanism means that airlines should not treat liability limits as permanently fixed figures. Instead, their internal policies, forms, procedures, and claims-handling systems should be reviewed periodically to ensure that they remain aligned with the applicable legal limits.

XII. Why Does the Montreal Convention Matter to an Airline’s Legal Department?

The significance of the Montreal Convention extends beyond determining the amount of compensation that may be payable.

For airlines, the Convention provides a legal framework that should be reflected across a number of operational and legal processes, including:

1. Passenger Claims Management

Establishing a clear process for receiving, classifying, assessing, and responding to passenger claims.

2. Liability Assessment

Determining whether the relevant incident falls within the carrier’s liability under the Convention.

3. Damage Assessment

Distinguishing between the applicable liability limit and the actual loss or damage established by the claimant.

4. Evidence Management

Preserving records and documents that may become relevant in the event of a dispute or legal proceedings.

5. Review of Conditions of Carriage

Ensuring that the airline’s conditions of carriage and internal procedures are consistent with the applicable legal framework.

6. Dispute Management

Determining the airline’s legal position before settling, rejecting, or defending a claim before the competent authority or court.

XIII. Why Do Airlines Need Legal Review of Baggage Claims?

Baggage claims involve multiple legal and factual considerations that must be assessed together.

The first question may be:

Does the incident fall within the scope of the carrier’s liability?

The next question is:

What loss or damage can be established?

This is followed by:

What is the applicable liability limit?

Then:

Was the passenger’s complaint submitted within the applicable time limit?

Finally:

Are there any circumstances or documents that may affect the assessment of the claim or the airline’s legal defense?

Accordingly, effective baggage claims management requires more than an operational response. It also requires a clear legal framework connecting the airline’s internal procedures with its obligations under the Montreal Convention and the applicable domestic law.

Conclusion

The Montreal Convention establishes a uniform framework governing air carrier liability for baggage in international carriage, including cases involving the destruction, loss of, or damage to baggage, as well as delay, subject to the conditions and limitations established by the Convention.

With respect to baggage, the maximum liability limit under Article 22(2) is now 1,519 Special Drawing Rights (SDR) per passenger, effective as of 28 December 2024, following the previous limit of 1,288 SDR that had applied since 28 December 2019.

However, this limit does not constitute a fixed or automatic compensation amount payable to every passenger. Rather, it represents a limit on the carrier’s liability, with the assessment of any claim requiring consideration of the loss or damage established and the specific circumstances of the case.

Accordingly, effective baggage claims management requires airlines to integrate legal expertise, risk management, evidence preservation, structured claims procedures, and ongoing review of applicable liability limits and conditions of carriage.

Each claim should ultimately be assessed on its own facts to determine the extent of the carrier’s liability and the amount, if any, recoverable, taking into consideration the Montreal Convention, the applicable domestic law, and the relevant jurisdiction.

How Can Specialized Legal Support Assist Airlines?

Specialized legal counsel can assist airlines in developing and reviewing baggage claims policies, conditions of carriage, claims-handling procedures, liability and compensation assessments, and disputes arising from air carrier liability, thereby supporting a consistent legal approach to claims management and helping mitigate the risks associated with baggage-related disputes.