The SITA 2026 Baggage IT Insights report reveals a significant 23% reduction in mishandled baggage rates in 2025, marking the first time these rates have fallen below pre-pandemic levels.

This improvement comes as global passenger numbers reached a record 5 billion, up from 4.8 billion in 2024. However, the cost of mishandling remains substantial, amounting to $6.3 billion annually, with each mishandled bag costing an average of $260.

Passenger volumes are increasing faster than the infrastructure can accommodate, with 24 million bags mishandled in 2025. The report highlights that the shift towards digital solutions, such as real-time data sharing, AI routing, and biometric bag drop, is transforming baggage handling from a logistical challenge to a digital service. Nicole Hogg, Portfolio Director Baggage at SITA, noted, “Passengers expect to know where their bag is at every moment, and they’re increasingly willing to help us track it.”

Technological advancements are yielding tangible results. For instance, Apple’s Find My integration with SITA WorldTracer® reduced permanently lost luggage by 90% in its first year. Additionally, Thai Airways' use of SITA’s Auto Reflight has significantly expedited baggage processing.

Looking ahead, the report suggests that delayed bags, which account for 70% of mishandling costs, present an opportunity for further improvement. With three-quarters of airlines planning to invest in AI and half aiming to provide real-time baggage updates, the industry is poised for continued progress. The goal is full compliance with industry-wide baggage tracking by 2027, paving the way for innovations like home-tagging and car park bag drops

This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.