What Happens if an Airline Loses Your Luggage?
Airlines are required to compensate you for lost luggage, but the process involves strict deadlines, documentation requirements, and liability caps most passengers don't know about until it's too late.
If an airline loses your luggage, you are entitled to compensation, but only if you follow a specific process within strict deadlines. Most passengers miss those deadlines or fail to file the right paperwork, which is why airlines resolve so many claims for far less than the full amount owed, according to the US Department of Transportation's consumer protection guidance on lost and delayed baggage.
What the airline is required to do
For flights within the United States, airlines are liable for up to $3,800 per passenger for lost, damaged, or delayed baggage under DOT regulations. For international flights governed by the Montreal Convention, the liability limit is approximately 1,288 Special Drawing Rights, roughly $1,700 USD at current exchange rates, according to DOT's official guidance.
Airlines must also reimburse you for reasonable expenses caused by the delay while they search for your bag, things like clothing, toiletries, and other necessities you needed to replace. Keep every receipt.
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The deadlines that most people miss
The timeline matters more than most passengers realise:
- Before leaving the airport: File a Property Irregularity Report (PIR) at the airline's baggage claim desk. If you leave without doing this, your claim becomes significantly harder to pursue.
- Within 21 days: For lost baggage on international flights, you must file a written claim within 21 days of when the bag should have been delivered. For domestic flights, check your airline's specific contract of carriage, most follow a similar window.
- Within 7 days: For damaged baggage, the claim must be filed within 7 days on international flights.
Missing these deadlines can eliminate your right to compensation entirely under the Montreal Convention, according to AFAR Magazine's 2025 guide to lost luggage claims.
What actually happens step by step
- Report it immediately at the airport. Go to the airline's baggage service office before leaving. Get a file reference number and a copy of the PIR.
- Track it online. Most airlines provide a tracking link with your file reference number. Bags are found and returned within 24 to 48 hours in the majority of delayed cases.
- Keep spending receipts. Any reasonable expenses you incur while waiting for your bag are reimbursable. The DOT does not set a specific daily limit but airlines typically pay $50 to $100 per day for necessities.
- File a formal claim if the bag is not found within 5 days. At this point the airline will begin treating the bag as lost rather than delayed, which triggers the full liability process.
- Submit a written claim with documentation. Include your PIR number, a list of the bag's contents with estimated values, and receipts where available. Airlines apply depreciation to used items.
What airlines routinely deny
Airlines exclude certain categories from liability in their contracts of carriage including electronics, cash, jewellery, medications, and fragile items packed in checked bags. If your lost bag contained a laptop or camera, you may receive nothing for those items regardless of the total claim amount, according to AFAR.
Travel insurance and credit card travel benefits often cover what airline liability does not, including electronics and higher-value items. Check your policy before assuming the airline will cover everything.
For the full breakdown, read the complete gotaprob analysis: Airlines Routinely Damage and Destroy Luggage and Make the Claims Process So Painful That Most Passengers Give Up.
Sources
- US Department of Transportation — Lost, Delayed, or Damaged Baggage, liability limits and passenger rights — https://www.transportation.gov/individuals/aviation-consumer-protection/lost-delayed-or-damaged-baggage
- AFAR Magazine — What to Do if an Airline Loses Your Luggage 2025, deadlines and documentation requirements — https://www.afar.com/magazine/what-to-do-if-an-airline-loses-your-luggage
Go deeper
Airlines routinely damage and destroy luggage and make the claims process so painful that most passengers give up