Baggage mishandling falls to record low

Airlines reduced baggage mishandling to its lowest level on record in 2025, according to SITA’s latest Baggage IT Insights report. The global rate fell to 4.9 mishandled bags per 1,000 passengers – down 23 percent year on year – despite continued growth in passenger traffic.

The report attributes the improvement to wider adoption of digital technologies, including AI-assisted baggage routing, real-time data sharing, biometric bag drop and connected passenger devices. Global passenger numbers reached five billion in 2025, while the total number of mishandled bags fell 19 percent to 24 million.

Despite the progress, baggage mishandling continues to cost the aviation industry an estimated US$6.3 billion annually. SITA estimates the average cost of handling a mishandled bag has risen to US$260, with delayed baggage accounting for around 70 percent of total costs. Transfers remain the leading cause of mishandling, responsible for 39 percent of cases.

“Baggage is shifting from a logistical problem to a digital service,” said Nicole Hogg, Portfolio Director Baggage at SITA. “Passengers expect to know where their bag is at every moment, and they’re increasingly willing to help us track it. The next phase is about bringing the technology we already have to every transfer, every handler and every airport, offering greater visibility and connecting every step of the journey. That’s how the industry earns the trust passengers now expect.”

Looking ahead, the report suggests digital investment will continue to accelerate. Three in four airlines plan to invest in AI over the next two years, while half intend to provide passengers with real-time baggage updates. Industry adoption of baggage tracking under IATA Resolution 753 has also surpassed the 50 percent mark, with full compliance targeted for 2027.

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