Airline Baggage Compensation: Your Rights

Airlines are required by law to compensate you for lost, delayed, and damaged baggage. On domestic U.S. flights, the U.S. Department of Transportation sets a minimum liability of $4,700 per passenger under 14 CFR Part 254. ^[1] On international flights, the Montreal Convention caps liability at 1,519 Special Drawing Rights per passenger — approximately $2,025 at late-2024 exchange rates. ^[2]

These are not goodwill gestures. They are legal obligations.

Airlines count on most people not knowing these numbers. They’ll offer a modest stipend and hope you don’t ask questions. Below you’ll find what to ask for, how to file, and what to do when they say no.

Your Rights at a Glance

Important: These are maximums, not guarantees. Airlines compensate based on the depreciated value of your lost items, not the original purchase price. The $4,700 limit is per passenger, not per bag. If you and your partner each lost a bag, that’s $9,400 in potential claims. The more documentation you have — receipts, photos, purchase records — the stronger your claim. ^[4]

Your Rights on Domestic Flights

The DOT sets the rules for baggage compensation on flights within the United States. Under 14 CFR Part 254, airlines operating aircraft with more than 60 seats can’t limit their baggage liability below $4,700 per passenger. ^[1]

This amount was last updated on January 22, 2025 (up from $3,800), and the DOT reviews the limit every two years using a Consumer Price Index formula. ^[1] The $4,700 covers all provable direct or consequential damages from the disappearance of, damage to, or delay in delivery of your personal property, including baggage.

What Airlines Must Provide During a Delay

While your bag is missing, DOT guidance states airlines must reimburse reasonable incidental expenses — toiletries, a change of clothing, and other necessities. ^[4] There’s no fixed daily dollar amount required by federal regulation. Many airlines set internal limits of $50-$200 per day, but those are airline policy, not federal law.

Document every purchase. The DOT standard is “reasonable,” and receipts make your expenses verifiable. ^[4]

Bag Fee Refund

Under 14 CFR Part 260, airlines must automatically refund your checked bag fee if your bag isn’t delivered within 12 hours of your domestic flight’s arrival at the gate. ^[3] This rule took effect October 28, 2024, and requires you to file a Mishandled Baggage Report (MBR) at the airport. Refunds must be processed within 7 business days for credit cards or 20 calendar days for cash and debit. ^[3]

For a detailed breakdown of domestic rights and how to exercise them, see our domestic flight rights guide (coming soon).

Your Rights on International Flights

International flights between signatory countries fall under the Montreal Convention, which caps baggage liability at 1,519 Special Drawing Rights (SDR) per passenger — approximately $2,025 at late-2024 exchange rates. ^[2]

The SDR is an International Monetary Fund currency unit. Its dollar value fluctuates daily, so the exact USD equivalent will vary slightly. ^[8] The 1,519 SDR limit took effect December 28, 2024, a 17.9% increase from the previous 1,288 SDR limit. ^[6]

Strict Liability for Checked Bags

Under Article 17(2) of the Montreal Convention, the airline is presumed liable for checked baggage damage — you don’t need to prove the carrier was negligent. ^[2] The airline’s only defense is that the damage resulted from an inherent defect in the baggage itself.

For carry-on baggage, the standard is different. You must prove the damage resulted from the carrier’s fault. ^[2]

Filing Deadlines Are Strict

The Montreal Convention imposes strict written complaint deadlines under Article 31: ^[2]

Missing these deadlines by even one day can bar your claim entirely, except in cases of carrier fraud. ^[2] Verbal reports at the airport aren’t sufficient — Article 31(3) requires that every complaint be made in writing.

International Bag Fee Refund

The DOT’s bag fee refund rule also covers international flights: 15 hours for short-haul international (non-stop segment 12 hours or less) and 30 hours for long-haul international (non-stop segment over 12 hours). ^[3]

For a full explanation of international rights, see our international flight rights guide (coming soon).

The Montreal Convention in Plain English

The Montreal Convention covers international flights between 143 countries. Here’s what it means for your bag: ^[2]

• The airline is presumed at fault for checked baggage damage. You don’t need to prove negligence.
• The maximum payout is ~$2,025 (1,519 SDR). You can increase this by declaring a higher value at check-in and paying a supplementary fee. ^[2]
• A bag is legally lost after 21 days without arrival, per Article 17(3). ^[2]
• You must complain in writing within 7 days for damage or 21 days for delay. No exceptions.
• You have 2 years from your arrival date to file a lawsuit if needed.

ICAO reviews the liability limits every five years using an inflation factor. The most recent revision (December 2024) was the fourth since the treaty took effect in 2003. ^[6]

For a deeper explanation, see our Montreal Convention guide (coming soon).

How to File a Baggage Claim

Filing a claim isn’t difficult, but airlines don’t make it intuitive. The process has four key steps:

For the complete step-by-step process, see our how to file a claim guide.

Free Claim Letter Template

A well-written claim letter significantly improves your chances of full compensation. It shows the airline you know your rights and you’ve documented your losses.

Our free template covers every required element: flight details, PIR number, itemized contents with values, specific regulation citations, and a clear dollar amount. It’s ready to customize for any airline, domestic or international.

No signup required. No email gate.

Get the free claim letter template

Credit Card Travel Insurance

Your credit card may provide an additional layer of protection beyond what the airline owes you. Cards like the Chase Sapphire Preferred and American Express Platinum include baggage delay and loss coverage that kicks in on top of airline compensation.

This coverage typically adds $1,000 to $3,000 in protection for delayed or lost bags, with lower deductibles and faster processing than airline claims. Some cards cover interim expenses with no waiting period. Don’t leave this money on the table.

For a breakdown of which cards offer what and how to file, see our credit card insurance guide (coming soon).

Escalating a Denied or Lowball Claim

Airlines deny or underpay claims regularly. When that happens, you’re not out of options. The escalation path, roughly in order of effort and effectiveness:

1. File a DOT complaint. The DOT’s Office of Aviation Consumer Protection accepts complaints online at airconsumer.dot.gov. The airline must acknowledge within 30 days and respond in writing within 60 days. ^[5] The DOT can’t order individual compensation, but complaints inform enforcement actions and create a paper trail.

2. Dispute through your credit card. If you paid for your ticket with a credit card, you may be able to dispute the charge or file a claim through your card’s travel protection.

3. Escalate via social media. Public-facing airline accounts on X (formerly Twitter) and Facebook often have faster response times than traditional customer service channels.

4. Engage a claims service. Services like AirHelp and AirAdvisor handle the process for you but take 30-50% of the recovered amount.

5. Small claims court. For amounts within your state’s jurisdictional limit, small claims court is an option that doesn’t require a lawyer.

For detailed guidance on each escalation path, see our escalating denied claims guide (coming soon).

Domestic vs. International: Quick Comparison

Protect Your Next Trip

A luggage tracker can’t prevent mishandling, but it changes the dynamic. When your bag goes missing, you’ll know where it is even when the airline doesn’t. In 2024, 33.4 million bags were mishandled globally. ^[7] A $29 tracker is inexpensive insurance.