Airlines are legally required to compensate you for lost, delayed, or damaged baggage. The exact amount depends on whether your flight was domestic or international, and which regulations apply. Here's what you need to know to get the maximum compensation.
US Domestic Flight Rules (14 CFR Part 254)
The US Department of Transportation (DOT) sets the liability limit for domestic flights under 14 CFR Part 254 — read our full breakdown of the $4,700 DOT limit for details:
Maximum liability: $4,700 per passenger (effective January 22, 2025)
Applies to all US-operated domestic flights
Airlines can set LOWER limits but cannot exceed the DOT maximum
Covers the depreciated value of your bag and contents
You can demand cash — airlines cannot force you to accept vouchers
This limit is adjusted periodically for inflation. The previous limit was $3,800.
International Flight Rules (Montreal Convention)
For international flights covered by the Montreal Convention:
Maximum liability: 1,519 SDR per passenger (~$2,000 USD as of December 2024)
SDR (Special Drawing Rights) is an IMF currency basket — the USD value fluctuates
Applies to flights between Montreal Convention signatory countries (covers 99% of international air travel)
Airlines are strictly liable — you don't need to prove negligence
Covers both the bag and its contents
EU-Specific Rules
For airlines based in the EU (or flights departing from the EU):
EU Regulation 889/2002 extends the Montreal Convention to domestic flights within the EU
This means the 1,519 SDR limit applies to ALL flights, not just international ones
EU airlines cannot set a lower limit
What "Depreciated Value" Means
Airlines don't pay the original purchase price of your items. They calculate the current value based on depreciation:
Typical depreciation rate: 10-20% per year
A $100 shirt purchased 2 years ago might be valued at $60-$80
Electronics depreciate faster (20-33% per year)
Keep receipts or credit card statements as proof of purchase price
How to Maximize Your Compensation
Itemize everything — list every item in your bag with the purchase price and date
Provide proof — receipts, credit card statements, photos, Amazon order history
Don't accept the first offer — airlines often lowball the initial offer
Know the regulation — cite 14 CFR Part 254 (domestic) or Montreal Convention (international)
Demand cash — you are not obligated to accept vouchers or credits
File a DOT complaint if the airline is unresponsive — 78% success rate
Interim Expenses for Delayed Bags
While waiting for a delayed bag, airlines must reimburse reasonable interim expenses — see our complete guide to delayed baggage compensation for full details:
Toiletries, underwear, and a change of clothing
Typically $50-$100 per day
Keep all receipts
File within 21 days of receiving the bag (international flights)
Frequently Asked Questions
Can I exceed the liability limit?
If your bag contents are worth more than the limit, you can:
- Declare excess value at check-in (for an additional fee) to increase the airline's liability
- File on your travel insurance for the difference
- In rare cases, prove the airline acted with intent to cause damage or recklessly (Montreal Convention Article 22)
Do airlines have to pay for everything in my bag?
Most items are covered, but airlines exclude: cash, jewelry, electronics, fragile items, perishable goods, and items prohibited from checked baggage. Check your airline's Contract of Carriage for specific exclusions.
What if the airline offers to repair my damaged bag instead of paying cash?
Airlines often prefer to repair rather than replace. If the repair is adequate, this is a valid resolution. If you'd prefer replacement, you can negotiate — but the airline is not required to replace if repair is possible.
Compensation Rules by Region and Airline
Compensation rules depend on your airline and route. Here's how regulations apply across different airline types:
US Domestic Airlines (DOT Rules)
All US domestic flights are covered by the $4,700 DOT limit. Major US carriers include:
American Airlines — $4,700 domestic max. Files claims through their online portal. Applies standard depreciation rates.
Delta Air Lines — $4,700 domestic max. Known for relatively fair claim processing among legacy carriers.
United Airlines — $4,700 domestic max. Online claims system with WorldTracer tracking for lost bags.
Southwest Airlines — $4,700 domestic max. Straightforward claims process through customer relations.
European Airlines (Montreal Convention + EU Rules)
EU carriers benefit from EU Regulation 889/2002, which extends Montreal Convention protections to domestic flights:
Lufthansa — Montreal Convention applies to all routes (domestic and international). ~$2,000 USD max per passenger.
British Airways — Same Montreal Convention protections. Strong online claims process.
Turkish Airlines — Montreal Convention applies to international flights. Thorough documentation requirements.
Air France — EU regulations mean full Montreal Convention protection on every flight.
Asia-Pacific and Middle Eastern Airlines
Emirates — Montreal Convention for international flights. Known for responsive claims processing.
Qatar Airways — Montreal Convention protections with a structured claims process.
Singapore Airlines — Follows Montreal Convention. Reputation for high customer service standards extends to claims.
Budget and Ultra-Low-Cost Carriers
Budget airlines must follow the same regulations as legacy carriers, but the claims experience differs:
Spirit Airlines — Same $4,700 domestic / Montreal Convention international limits apply, but documentation requirements are stricter.
Frontier Airlines — Full regulatory compliance with thorough claim review processes.
For your airline's specific compensation limits, visit our airline directory.