The $2 Billion Reason You Should Never Put Valuables in Your Checked Luggage-and How to Fit Them in a Carry-on

"The answer is yes, but with a caveat. According to the 2024 SITA Global Baggage Report, the airline industry loses about $2 billion annually due to lost or mishandled luggage. So, lost luggage payouts are certainly happening at a grand scale, no doubt about it-but the individual payouts are sometimes a fraction of the value of the lost items. Per the U.S. Department of Transportation, airlines are liable for up to $4,700 per person for lost luggage on domestic flights"

"Per the U.S. Department of Transportation, airlines are liable for up to $4,700 per person for lost luggage on domestic flights and up to $2,175 for international flights, which are five times more likely to lose your luggage than domestic flights, according to SITA. But it's important to note that airlines can limit their liability by determining what items are actually worth reimbursing. Artwork, jewelry, computers, and even cash are often excluded from reimbursement."

Airlines lose about $2 billion annually to lost or mishandled luggage, and international flights are five times more likely to misplace bags than domestic flights. The U.S. Department of Transportation caps liability at $4,700 per passenger for domestic lost luggage and about $2,175 for international lost luggage. Individual reimbursements can be significantly less than the value of items because airlines can restrict payouts by valuing possessions and excluding categories such as artwork, jewelry, computers, and cash. Passengers can reduce risk by packing valuables in carry-on luggage and using appropriately sized travel accessories and organized packing hacks to secure items.

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