In 2025, the industry made its most progress outside of the pandemic, even as ridership increases. Lost baggage rates fell 23%, a sign that digital transformation efforts are taking hold, according to a New SITA report.
Despite improvement, poor management still costs the industry $6.3 billion a year. Each bag has an average cost of $260. With an average net profit of just $8 per passenger, one mishandled bag wipes out profits from more than 30 seats sold, and five wipes out profits from an entire flight.
READ: SITA applies predictive analytics to baggage disruption with new Bag Radar technology
Passenger volume is increasing faster than the infrastructure designed to serve them. In 2025 alone, SITS says five billion passengers traveled worldwide, but 24 million bags were still mishandled. Longer term, mismanagement has fallen by nearly three quarters since 2007.
“Baggage is moving from a logistical problem to a digital service,” said Nicole Hogg, SITA baggage portfolio director. “Passengers expect to know where their luggage is at all times and are increasingly willing to help us track it. The next phase is to bring the technology we already have to every transfer, every handler and every airport, offering greater visibility and connecting every step of the journey. This is how the industry gains the trust that passengers now expect.”
The report points out where the next gains may come from. Delayed baggage represents around 70% of the total cost, most of it operational, in recovery, diversion and delivery. In case of lost or damaged suitcases, up to 70% of the cost is compensation. Transfers will continue to be the main factor of mismanagement, with 39% of cases in 2025, compared to 41% the previous year.
