Baggage Compensation: Check Your Rights

Baggage claim - compensation amount

The airline is obliged to pay up to 1 131 Special Drawing Rights (SDRs) to the passenger for any issues regarding luggage, when they are deemed responsible. SDR is an artificial currency consisting of US dollars, euros, yen and pound sterling, which is calculated daily. At the time of writing, 1 SDR equals 1.24 € and 1 131 SDRs is approximately 1 500 €.

The compensation from the airline should cover the following:

• Emergency purchases when baggage is delayed, however the airline is obliged to only pay for those items bought during the days that the passenger was waiting for their bags.
• In the event of damaged baggage, the repair or value of baggage, or any damaged contents.
• If luggage is lost, replacement purchases of contents, plus purchase of a new suitcase.

This amount is paid once per person for any checked luggage, regardless of whether the suitcase was shared with someone else or not.

Air passenger rights under the Montreal Convention

The legal basis for liability issues in international and civil aviation is the so-called Montreal Convention.

Here is a summary of the key points with regards to this agreement:

• Flight route – claims for compensation under the Montreal Convention apply only to international flights between contracting states;
• Responsibility – for checked baggage the airline is liable, regardless of fault, for any damage incurred during the journey. For hand luggage, the airline is liable only if the damage was caused by airline employees.
• Deadlines – ensure the claim for compensation is made within the statutory deadline, which are explained a bit later in this article.

Liability of airline - baggage claim

According to the Montreal Convention, the airline is liable for any issues with regards to checked luggage during the journey. This encompasses delay, damage and loss of luggage which occurred while it was on the aircraft or under the care of the airline. However, the airline is not liable for any luggage problems which are caused due to a defect in the item, or if the passenger is responsible - for example, not packing fragile items properly.

For hand luggage and personal items, which the passenger takes on board with them, the airline is only liable when they or their employees caused the damage. Passengers must have sufficient evidence that this is the case when making a claim.

Deadline for your luggage claim

If your luggage is damaged, or hasn’t arrived at the destination airport, you should immediately go to the complaint counter or the counter of your airline. There, you will need to show your baggage tag and then fill in the Property Irregularity Report (PIR), which will outline what issue has occurred. Keep your copy safe, as it is evidence of your claim. You will be given a transaction number that allows you to view the status of your baggage, if it is still in transit, using the worldwide electronic baggage tracking system.

Luggage problems during business & package travel

The same rights apply for business and package travel as for individual travellers; however, there are a few differences to note. For example, when taking a trip as part of a package tour, and baggage issues arise, passengers can claim for a reduction in price for each day this impacts them. Certain percentages will be applied to this price reduction and to get an overview of this, the Kempten Table can be referenced.

Baggage problems during business travel

When travelling for business trips, a suit and tie are considered necessities and the costs for these items of clothing are therefore refunded to you by the airline. However, bear in mind that the maximum you can be compensated for is 1 500 €, so do not go overboard with your spending. You will also find more information on the topic in our article Business travel.

Baggage problems on package holidays

If you experience luggage problems during package travel, you should contact not only the airline, but also the tour operator. Delayed, damaged or lost luggage falls under the category of travel disruptions and the tour operator is obliged by law to ensure your journey is as promised at the time of purchase. If they are unable to provide specific solutions for your baggage problem, you are entitled to a price reduction of the cost of your trip.

Baggage claim form

When enforcing your rights on your own, the following steps should be followed:

Step 1. You have already filled in the PIR form at the airport, now it is time to write a letter to the airline. You can create your own letter or use our letter template. If you choose our template, you can either fill it in online and send it via email, or print it out, fill it in and then mail it. In both cases, all receipts for replacement and emergency purchases must be attached – when emailing, you can scan these. It is advised when mailing the letter to use registered post, in order to have evidence of when the airline receives it. If necessary, this information can later be used in court.

Open letter template

The letter should include the following information:

Current statistics on baggage issues

• In 2024, the worldwide rate of misrouted baggage was only 6.3 items per 1,000 passengers — a decrease from 6.9 in 2023.
• In total, according to the report, around 33.4 million baggage items were mishandled (delayed, damaged, or lost) in 2024, even though global passenger numbers were at record levels.
• Of these 33.4 million cases, more than 66% (≈ 22 million) were found again within 48 hours via the SITA WorldTracer system and returned to their owners.
• The most common reason remains delays during transfers — in 2024, about 41% of all baggage issues were due to this.
• Losses and thefts are less common: about 8% of reported baggage issues involved lost or stolen items.

Conclusion: What you should take away

Even in 2025/2026: lost or delayed baggage is rare — but possible.

• Your rights to compensation remain important — for delay, loss, or damage.
• Always document your baggage receipt (Baggage Tag) and keep receipts in case replacement purchases are necessary.
• Modern airlines and airports are improving their technology — but risks remain, especially during transfers and with high passenger volumes.