Airlines lost 23% fewer bags in 2025, but 24 million still went missing: SITA

Airlines worldwide reduced baggage mishandling by 23% in 2025, signalling steady progress in improving baggage operations through digital technology. Yet, 24 million checked bags were still delayed, lost, damaged or stolen during the year, according to the 2026 Baggage IT Insights report published by SITA.

The report, now in its 20th edition, found that the global baggage mishandling rate declined to 4.9 bags per 1,000 passengers in 2025. The improvement came despite airlines carrying 5 billion passengers during the year.

According to SITA, the latest figures suggest the aviation industry's continued investment in digital baggage management is delivering measurable operational gains.

Millions of bags still create a costly problem

While baggage performance improved, the financial impact remains significant.

The report estimates baggage mishandling costs the aviation industry $6.3 billion every year, with each mishandled bag generating an average cost of $260.

According to SITA:

• 5 billion passengers travelled globally in 2025.
• 24 million bags were mishandled.
• The mishandling rate fell 23% to 4.9 bags per 1,000 passengers.
• Baggage mishandling has declined by nearly 75% since 2007.

The report also highlights the commercial impact on airlines. With average net profit standing at $8 per passenger, a single mishandled bag can eliminate the profit generated from more than 30 passengers, while five mishandled bags can erase the profit from an entire flight.

Digital tracking is reshaping baggage operations

SITA attributes much of the improvement to wider adoption of digital technologies across baggage handling systems.

Nicole Hogg, Portfolio Director, Baggage at SITA, said baggage management is evolving beyond a logistical function.

She said passengers increasingly expect real-time visibility into the location of their luggage and are more willing to use digital tools to monitor their bags throughout their journey. According to Hogg, the next phase of industry improvement will depend on expanding existing technology across airports, baggage handlers and transfer points to improve visibility throughout the baggage journey.

Delays remain the biggest challenge

The report defines a mishandled bag as checked baggage that becomes unintentionally separated from its passenger or crew. This includes bags that are:

• Delayed
• Lost
• Damaged
• Pilfered or stolen

Although overall performance improved, delayed baggage continues to account for the largest share of industry costs.

According to SITA:

• Delayed baggage represents around 70% of total mishandling costs, driven largely by recovery, rerouting and delivery expenses.
• Lost and damaged baggage account for compensation costs, which can represent up to 70% of expenses within those categories.
• Transfer baggage remains the leading cause of mishandling, accounting for 39% of all cases in 2025, compared with 41% a year earlier.

The reduction suggests airlines are making gradual improvements in handling transfer luggage, although it continues to be the largest operational challenge.