ICAO: International Air Travel Liability Limits Set to Increase, Enhancing Customer Compensation

Travelers will soon benefit from higher compensation limits for international flights, with the International Civil Aviation Organization (ICAO) announcing that the Montreal Convention liability limits for death, injury, delays, baggage and cargo issues, will increase on 28 December 2024.

ICAO has informed the 140 States Parties that the limits would increase in line with the Convention’s built-in review mechanism, to adjust for inflation every five years. This ensures that passenger and cargo compensation remains appropriate over time. This is the fourth review since the treaty came into force in 2003.

Formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, the Montreal Convention 1999 or MC99 established a comprehensive and unified framework for the international carriage of passengers, baggage, and cargo by air, introducing several elements to balance the interests of travelers and the shippers of cargo and the aviation industry.

The Convention sets liability limits for airlines, ensuring fair compensation for consumers in cases of injury, death, delay, baggage and cargo issues. Additionally, it allows for the use of electronic tickets and air waybills, significantly reducing paperwork and operational costs for airlines. This modernization has simplified processes and enabled more efficient risk management.

“ICAO continues to advocate for the universal ratification of MC99,” said Juan Carlos Salazar, ICAO Secretary General. “This Convention is fundamental in ensuring the protection of consumer interests in international air travel. By promoting harmonization and codification of rules governing international carriage by air, MC99 benefits passengers and the shippers of cargo while enabling the unified and equitable development of air services.”

The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. For indicative purposes, 1 SDR was valued at US$ 1.33318 on 18 October 2024.  The limits will be revised as follows:

The limit for death or bodily injury will increase from 128,821 SDRs to 151,880 SDRs  (about US$202,500) (originally 100,000 SDRs in 2003).

The limit for delay in passenger transport will rise from 5,346 SDRs to 6,303 SDRs  (about US$8,400) (originally 4,150 SDRs in 2003).

The limit for destruction, loss, damage, or delay of baggage will increase from 1,288 SDRs to 1,519 SDRs (about US$2,000) (originally 1,000 SDRs in 2003).

The limit for destruction, loss, damage, or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram (about US$35) (originally 17 SDRs in 2003).

ICAO has invited the States Parties to MC99 to “make provisions as necessary in accordance with their domestic legal requirements, to give full effect as of 28 December 2024 to the revised limits.”