American Airlines passenger and frequent traveler June Lee recently checked his sturdy aluminum suitcase on a cross-country flight. Although Lee’s much-loved 2-year-old designer bag had successfully weathered many trips worldwide, it would not survive this journey.
When American Airlines reunited Lee with the $1,700 suitcase at baggage claim in New York, it was severely damaged. In fact, the luggage looked like it had been run over by an aircraft instead of transported inside one.
After finding the airline surprisingly resistant to his damaged bag claim, Lee turned to Consumer Rescue. He hoped we could nudge American Airlines to promptly compensate him for the suitcase it destroyed and its contents.
Lee says American Airlines owes him well over $4,500 for the flattened bag and his ruined belongings.
Let’s examine what the law says about an airline’s liability limit for lost and damaged baggage.
American Airlines tags this bag as priority at LAX
Lee routinely flies between Los Angeles (LAX) and New York City (JFK).
On the day his bag was destroyed, Lee arrived at the business class check-in counter as usual. He lifted the large suitcase onto the scale, and the American Airlines agent attached a bright orange priority tag to it.
As he waited for his boarding pass, Lee watched his bag make its way down the conveyor belt. It soon pushed through the door flaps and vanished into the unknown.
Despite that AA priority tag, the next time he would see his sleek Rimowa designer bag, it would be unrecognizable.
What did American Airlines do to this bag?
After the overnight flight from Los Angeles landed, Lee made his way to baggage claim. After the long flight, he was hoping to quickly retrieve his luggage and head home. As the suitcases started plunking down onto the carousel, he expected to soon see his priority-tagged bag.
When it didn’t promptly arrive he was only mildly annoyed. But as he continued to wait, the crowd of passengers around him grew thinner. Increasingly more annoyed, Lee began to suspect his bag had been misdirected.
But then he noticed a large bin holding the remnants of what used to be a suitcase beginning a trip around the carousel. At first, Lee didn’t recognize it as the fancy designer bag he checked at the American Airlines counter hours before.
In fact, whatever was in that bin didn’t look much like a piece of luggage at all.
However, as it got closer, Lee recognized some of his own clothing falling out of the bin. Then he noticed the American Airlines priority tag. Lee suddenly realized the pile of crumpled aluminum was actually his $1,700 Rimowa bag.
And even though the bag has a lifetime guarantee, something told Lee that Rimowa probably wouldn’t be able to fix this damage.
Filing a damaged baggage claim at the airport
As a savvy traveler, Lee knew it was important to immediately create an incident report at the airport. He picked up the bin and his clothing, which were scattered about on the carousel, and carried the awkward heap to the American Airlines baggage service.
Related: American Airlines promised me a $18,349 refund. Why did I get flight credit?
For the next hour, Lee took inventory of what was missing from his demolished bag. Then he carefully photographed the remnants of his luggage and completed the incident report.
In this case, Lee filed two incident reports: one for a mishandled (damaged) bag and the other for missing items. When he tallied up everything that was missing and damaged he estimated a loss of over $4,000.
After completing all the paperwork, Lee gathered what was left of his belongings and finally headed home.
Then he waited for the claims to be reviewed and paid. He hoped it would be a swift process.
It wasn’t.
What does an airline owe you if it loses or damages your bag?
It isn’t unusual for airline passengers to have unrealistic and unreasonable expectations when filing a damaged or lost luggage claim. In fact, some travelers seem to view having their luggage damaged or lost as an opportunity to fleece an airline.
My case-dismissed files are filled with requests from passengers who have assigned severely overinflated values to their belongings. In one case, a traveler told me she estimated the airline and/or travel insurance company owed her roughly $16,000 for the damage to her small suitcase. In another particularly memorable case, a woman claimed to have placed $158,000 worth of uninsured jewelry into her carry-on, which was subsequently gate-checked.
Not surprisingly, these and other similar claims didn’t go the way the air passenger hoped. The reason? Worldwide airline liability limits for lost and damaged bags.
Airline liability limits for lost and damaged bags
An airline’s liability limit for your belongings is vastly different depending on whether your flight is domestic or international.
- International flights: The Montreal Convention sets an airline’s liability limit at just around $1,700 per passenger (not per bag) on international flights.
- Domestic flights in the United States: The Department of Transportation sets an airline’s liability limit for domestic flights at $4,700 per passenger.
It’s important for passengers to know that these are the upper limits, not a required cash award issued for a lost or damaged bag. Airlines rarely pay anywhere near the upper limit, instead factoring in the diminished value of your belongings when determining compensation.
Travelers should always remember these limits when packing for vacation and always avoid putting valuable items in checked bags.
American Airlines has good news about this damage claim
Lee’s claim was scraping the top of American Airlines’ uppermost liability for his destroyed bag and belongings.
But he had two things passengers often don’t have:
- Itemized receipts for his damaged bag and clothing.
- American Airlines Executive Platinum status.
I sent Lee’s case over to our executive contact at American Airlines for review. I included the photos that showed his hardsided, “super durable” aluminum suitcase had been no match for whatever had smashed it between LA and NYC.
Shortly after the executive team had a look at Lee’s damage claim, along with the photos of his destroyed bag, Lee received the good news.
They [American Airlines] are sending me a check for the maximum liability for the damaged luggage and goods missing of $4,700. As before, [in the last case you helped me with] I believe your email to your contacts prompted them to provide better service, since I was unsuccessful after my attempts.
Thank you,
June
(That’s right, Lee is one of my repeat and happy “customers.”)
You’re very welcome, June. I’m happy to have been able to help you again, but I hope you won’t have to come back again soon!
How to ensure your lost or damaged bag claim is approved
The good news for travelers is that an airplane running over your checked bags is rare. I realize we don’t know for sure what smashed into Lee’s luggage, but an aircraft remains my best guess. Regardless of what ruined his designer suitcase, what happened isn’t common. However, if it happens to you, that won’t be a consolation.
Here’s how to reduce the impact, financially and emotionally, of an airline’s mishandling of your personal belongings (before, during and after your trip).
1. Photograph the items you’re packing in your checked bag
It’s always a good idea to take photos or, better yet, a video of the items you’re packing before you head to the airport. You should conduct your photoshoot in a well-lit room and make sure to pan out to show what your suitcase looks like as well.
If you buy anything of value during your vacation and intend to pack it in your suitcase on the flight home, document that new addition.
These photos will not only help you to assign value to your claim, but can also assist the airline in locating your belongings. This is especially true if the contents of your luggage are separated from the bag itself.
2. Keep receipts
Many people buy new clothes and other items just before vacation. Always keep those receipts. If you don’t want the paper cluttering your house, then scan the documents and store them in a folder on your computer. The same goes for high-priced luggage – always keep your receipt and file it away.
Lee was meticulous with his record keeping. He had receipts for most of his belongings. He used those receipts to back up his eventual damaged bag and missing items claim with American Airlines.
You need to do the same.
3. Don’t put luxury items or medical necessities in your checked bag
Never put high-value items or necessities like medicine in your checked bag.
Air passengers should know that most airlines in the United States have a clause in their contract of carriage that excludes any liability for luxury items or medical necessities.
That means if you purchased a $2,000 pair of Gucci sunglasses for vacation, you shouldn’t pack those in your checked bags. If you do, and your bag is lost, you won’t be reimbursed. Likewise, jewelry and other high-ticket items don’t belong in the luggage you intend to check.
Medicine or any medical device that you need when you land should never find its way into your checked bags.
Essential and high-value items should always remain in your carry on.
4. Check with your homeowners’ insurance for coverage
If you tend to travel with high-value (luxury) items like jewelry or expensive luggage, check with your homeowners insurance company to determine if your valuables are covered while traveling abroad.
The bottom line
Airline passengers should feel free to fly with whatever type of luggage and belongings they want. However, travelers should always keep in mind that airlines and travel insurance companies have liability and coverage limits.
If you’re not a top-tier frequent flyer with an airline, you should not expect a claim to result in as generous a payout as Lee received. Airlines are free to adjust claims based on a variety of factors. It is rare that a passenger’s damaged bag claim payout will match or exceed their request.
If you don’t have a homeowners’ or a travel insurance policy covering the items you’re traveling with, it’s best to just leave the expensive stuff at home. Otherwise, if an airplane runs over your luggage and drags your belongings across the airport, you might not be fully reimbursed. That’s a scenario that you can totally avoid.
But if your luggage does get damaged or your belongings lost, and the airline isn’t responding to your claim, you know where to turn. Consumer Rescue is always here for you. Our mediation services are always fast, friendly and, of course, free of charge. 🛟⛑️ (Michelle Couch-Friedman, Founder of Consumer Rescue)
