Do Airlines Have to Compensate You forLost Luggage?

Losing your luggage is one of the most frustrating parts of air travel. You land in a new city—only to find that your bag didn’t make the trip with you. Whether it’s missing entirely, stuck in limbo, or damaged beyond recognition, the big question is: Do airlines have to pay you for it?

The short answer? Yes—within limits. Here’s what the law says, what you’re entitled to, and how to take action if an airline loses your baggage.

What Counts as Lost Luggage?

Airlines usually won’t consider a bag officially “lost” until it’s been missing for at least 5 days—and often not until 21 days have passed. Until then, they’ll treat it as delayed luggage, which carries different rules for reimbursement.

If your bag is never found, it’s classified as lost, and that’s when compensation rules kick in.

How Much Can You Be Compensated?

Under U.S. law, airlines are required to compensate passengers for lost or damaged bags on domestic flights —up to a certain amount. As of now, the maximum liability for domestic flights is: $3,800 per passenger. That means if your bag and its contents are worth more than that, the rest is on you—unless you purchased extra insurance or filed a higher-value claim ahead of time.

For international flights, compensation is governed by the Montreal Convention, which limits liability to about $1,700 USD, depending on currency conversion.

What You’ll Need to File a Claim

This is the big one, and this is how you are most likely to see that reimbursement! If your bag is lost or
severely delayed, start documenting everything. Here’s what to do:

1. Before you leave the airport - Report the loss immediately at the airport’s baggage service counter. Follow their procedure and keep a copy of the report you filled out. If they don’t offer you a copy, request one.

   1. If it is after hours, begin a chat with your airline and keep all documentation.

   2. Get a written incident report and claim reference number. This should come with the incident report you do at the counter.

   3. File a formal claim with the airline within the deadline (usually within 21 days).

   4. List and estimate the value of your lost items — include receipts if you have them.

   5. Any items you replace, keep your receipt! There may be some non-reimbursable items, check your airline’s specific policy for those. Generally, they should replace on a 1:1 ratio the items in the lost bag.

   6. At the end of your trip, bring your receipts to the airline baggage desk to continue your claim. Follow their policy, and keep copies of everything

   7. Keep all documentation and communication with the airline.

What About Delayed Bags?

If your bag is delayed, airlines still have to cover reasonable expenses—like toiletries, clothes, and essentials you had to buy because your luggage didn’t arrive. They may not volunteer this info, but under DOT regulations, they must reimburse you.

What Airlines Won’t Cover

There are some exclusions to be aware of. Airlines often deny compensation for:

• Fragile or perishable items

• Electronics (unless checked properly and disclosed)

• Cash, jewelry, or valuables

• Items not allowed in checked baggage

Always check the airline’s contract of carriage—this is the fine print that spells out their rules. You can usually find it on their website.

What If They Refuse to Pay?

If an airline drags its feet, denies your claim, or offers less than what you're owed, you don’t have to accept it. You can:

1. Send a demand letter formally requesting compensation

2. File a complaint with the U.S. Department of Transportation: https://secure.dot.gov/air-travel-complaint

3. Take them to small claims court (yes, really—many travelers win)

Need help drafting a solid demand letter? That’s what we do at Airclaim Legal Services.

Yes, airlines are required to compensate you if they lose your luggage—but only if you take the right steps. Don’t assume they’ll do the right thing automatically. Be proactive, know your rights, and don’t be afraid to push back.

If you’re tired of getting the runaround, we can help you take action—without hiring an expensive attorney or spending hours researching laws.

Know Your Rights. Speak Up. Fly Fair.

Don’t let airlines ignore your rights. If you think you’ve been wronged, we’re here to help.

Sources:

1. FAA - https://www.faa.gov/travelers/fly-rights

2. DOT - https://www.transportation.gov/airconsumer/baggage

3. DOT - https://www.transportation.gov/airconsumer/baggage-delay