SITA’s 2026 Baggage IT Insights Report found that mishandled baggage rates have dropped by 23%, but incidents still cost the industry US$6.3 billion over the course of the year.
The technology company say improved digital processing is mostly responsible for the decrease, with lost luggage rates at their lowest since the Covid-19 pandemic. 2025 represented a significant drop from 2024, where SITA estimate misplaced and lost bags cost aviation US$7.9 billion.
Nevertheless, David Lavorel, SITA CEO, notes:
The total cost of mishandled bags is $6.3 billion. Compare that with the airline industry’s total 2025 annual profit, estimated at $41 billion. In other words, mishandled baggage alone is equivalent to 15% of profit. It’s one of the largest operational drains on profitability in our industry, which is already defined by thin margins and currently burdened with sky-high fuel costs and persistent geopolitical uncertainty.
Even as passenger numbers rise — up to an estimate 9.8 billion last year — the rate of mishandled luggage continues to fall, now impacting 4.9 bags for every 1,000 passengers. The report highlights better tracking, enhanced biometrics, and integration with Bluetooth bag tag products as driving improved luggage handling.
Darryl Dowd, Vice President of Safety, Security and Operations, ACI World, added:
The next step is to turn better operational performance into a more seamless and resilient baggage experience for passengers. Airports have an important role to play by working with airlines, ground handlers and technology partners to reduce failure points earlier in the journey, strengthen real-time visibility for stakeholders and passengers and improve end-to-end data exchange. The industry does not lack data; the challenge is ensuring that all stakeholders can act on the same timely, reliable picture when decisions need to be made.
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