Lost Luggage Compensation Guide 2026: Montreal Convention Explained

Nothing ruins the start of a trip quite like standing at an empty baggage carousel. In 2025, airlines globally mishandled over 34 million bags — roughly 5.7 bags per thousand passengers. While most delayed bags are returned within 48 hours, some are never found.

The good news: international law provides robust compensation rights for lost, delayed, and damaged luggage. This guide explains exactly what you are entitled to and how to claim it.

The Legal Framework: Montreal Convention

The Montreal Convention of 1999 (MC99) is the primary international treaty governing airline liability for baggage. As of 2026, over 130 countries have ratified it, including all EU nations, the United States, Canada, Australia, and most major travel destinations.

Under MC99, airlines are strictly liable for damage or loss of checked baggage up to:

SDR stands for Special Drawing Rights, an International Monetary Fund reserve asset. The SDR amount is reviewed and adjusted every five years for inflation. The current limit was set in 2024.

Immediate Steps When Your Bag Is Missing

Filing Deadlines (Do Not Miss These)

For damaged baggage:

For delayed baggage:

For lost baggage:

Missing these deadlines can bar your claim entirely. Some courts have been strict about the 7-day rule for damage — even if you did not notice the damage until later.

What You Can Claim

For delayed baggage, you can claim reimbursement for essential items purchased while waiting:

For lost or destroyed baggage, you can claim:

How to Maximize Your Claim

- File with a national civil aviation authority

- Use alternative dispute resolution services

- File in small claims court

What About Carry-On Items?

Under MC99, airlines are liable for damage to carry-on baggage only if they are at fault. The liability limit is the same 1,614 SDR. For items you take into the cabin, proving airline fault is harder — you must show the airline or its staff caused the damage.

Valuable Items and Exclusions

Airlines typically exclude or limit liability for:

Always carry valuables, medications, and essential electronics in your carry-on bag. If you must check expensive items, declare a higher value and pay the additional fee where available — this raises the liability cap for that bag.

Travel Insurance for Extra Protection

Standard travel insurance typically covers baggage delay and loss, often with limits of 1,000 to 3,000 EUR. Consider a comprehensive policy like [Travelex Travel Insurance](/go/amazon/B07Q9MJKBV) for broader protection.

Recommended products for luggage security:

Low-Cost Carrier Gotchas

Budget airlines like Ryanair, Wizz Air, and easyJet sometimes have more restrictive baggage policies and may push passengers toward filing claims through third-party services. Remember that MC99 applies to all carriers regardless of their size or pricing model.

What if the Airline Goes Bankrupt?

If an airline ceases operations, your claim becomes an unsecured debt in insolvency proceedings. Travel insurance with scheduled airline failure cover is your best protection in this scenario.

Summary

The Montreal Convention gives you strong legal rights when airlines lose or damage your luggage. Act quickly, document everything, and do not accept the first offer if it does not cover your actual losses. Your right to compensation is guaranteed by international law — use it.