Baggage Handling Improves Globally, But Industry Sees Room for Further Optimization

SITA’s latest report reveals a steady decline in mishandled bags, yet the industry still faces $5 billion in associated costs annually. As passenger expectations rise, airlines and airports are turning to real-time tracking, AI analytics, and self-service solutions to deliver a smoother, more connected baggage journey.

The SITA Baggage IT Insights 2025 report reflects the views and data of 280 airlines and IATA passenger traffic. SITA applies a weighting system, based on IATA passenger traffic statistics, to its WorldTracer data to calculate the baggage mishandling rates.

Improvements in Europe and Elsewhere

Per the report, Europe’s air transport industry handled record passenger volumes in 2024, with airports and airlines managing soaring baggage loads with increasing precision. Europe’s baggage mishandling rate dropped to 12.3 bags per 1,000 passengers in the past year, marking a 26% improvement compared to 2007 and an impressive recovery from 15.7 in 2022.

Globally, despite an 8.2% increase in worldwide traffic in 2024, the overall mishandling rate dropped to 6.3 bags per 1,000 passengers, down from 6.9 the previous year and 67% lower than in 2007. The total number of mishandled bags decreased to 33.4 million, compared to 33.8 million the previous year. Over 66% or 22 million of these cases were resolved and closed in SITA WorldTracer within 48 hours.

Mishandling Remains an Issue

While these results show clear improvement, baggage mishandling still cost the industry an estimated $5 billion in 2024, and passengers are increasingly expecting more from the industry. SITA CEO David Lavorel noted, “Passengers now expect their baggage experience to be as easy and transparent as using a rideshare or delivery app. It’s no longer just about moving bags, it’s about delivering a smooth, connected journey.”

Many airlines are ready to tap into technology that improves the passenger experience while keeping costs down and being simple to roll out. Lavorel said, “Together with our partners, we’re reimagining baggage handling to give passengers full visibility and control from departure to arrival, giving them peace of mind. Time for long-term solutions rather than band-aids.”

In 2024, 42% of passengers had access to real-time baggage updates, up from 38% the year before. Nearly half of travelers say mobile tracking would boost their confidence in checking in a bag, and 38% value the addition of digital ID tags. Airlines have responded by prioritizing visibility across the baggage journey, with 66% offering automated bag drop and another 16% planning to by 2027.

Where Most Bags Go Missing and How the Industry is Responding

Delayed bags remain the most common issue, accounting for 74% of mishandled baggage, down from 80% in the previous year. Lost or stolen bags made up 8%, while damaged or pilfered bags increased to 18%, up from 15% in 2023. Transfer mishandling was the biggest contributor at 41%, showing improvement from 46% the previous year.

SITA’s director of baggage Nicole Hogg remarked, “We’re making progress, but baggage still causes stress. Passengers want reassurance. The future of baggage is rapidly evolving with automation, computer vision, and mobile tools, we’re making the experience much more reliable.”

New Regulations to Help Reduce Mishandling

Earlier this year, the air transport industry approved the new Modern Baggage Messaging (MBM) standard. Designed to enhance data quality, MBM Version 2 is expected to reduce mishandling by another 5%. These improvements build on IATA Resolution 753, which mandates baggage tracking at four key stages, with a focus on using shared data to predict and prevent issues, not just report them.

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