Global baggage mishandling fell by 23% in 2025, dropping below pre-pandemic levels for the first time as airlines and airports expanded the use of digital tracking, automation and artificial intelligence (AI), according to SITA's 2026 Baggage IT Insights Report.
Global passenger numbers increased to five billion in 2025 from 4.8 billion the previous year, while the baggage mishandling rate fell to 4.9 bags per 1,000 passengers. Total mishandled baggage declined by 19% to 24 million bags.
Across the longer term, baggage mishandling has fallen by almost three-quarters since 2007.
Despite the global improvement, Africa recorded the highest baggage mishandling rate of any region at 12.1 bags per 1,000 passengers.
According to the report, international travel remains a key challenge for the continent, with journeys involving multiple airlines, airports and baggage handlers creating more opportunities for baggage disruption. Capacity pressures and ageing infrastructure in parts of Africa also continue to contribute to higher mishandling rates.
Technology drives baggage improvements
The report attributes much of the improvement in 2025 to better-connected baggage systems, including real-time data sharing, AI-powered routing, biometric bag drop and connected passenger devices.
"Baggage is shifting from a logistical problem to a digital service," said Nicole Hogg, portfolio director, baggage, Sita.
"Passengers expect to know where their bag is at every moment, and they're increasingly willing to help us track it. The next phase is about bringing the technology we already have to every transfer, every handler and every airport, offering greater visibility and connecting every step of the journey. That's how the industry earns the trust passengers now expect."
The report identifies Africa as the region with the greatest opportunity to improve baggage performance through end-to-end tracking, better data sharing, biometrics and AI-powered prediction.
Mishandling still costs the industry billions
Despite the lower mishandling rate, baggage disruptions continued to cost the airline industry an estimated $6.3bn in 2025.
The report places the average cost of a mishandled bag at $260, replacing the long-cited industry estimate of $150.
According to Sita, one mishandled bag can wipe out the profit generated by more than 30 passenger seats, while five mishandled bags can erase the profit from an entire flight.
Delayed baggage accounted for around 70% of the total cost, largely because of recovery, rerouting and delivery expenses. For lost or damaged baggage, compensation represented up to 70% of the total cost.
Transfer baggage remained the leading cause of mishandling, accounting for 39% of all cases in 2025, down from 41% the previous year.
Industry expands AI and baggage tracking
Sita highlighted several examples of technology improving baggage performance across the industry.
Apple's Find My integration with Sita WorldTracer cut permanently lost luggage by 90% in its first year and shortened delayed-bag recovery by 26%. Sita also recently integrated Google's Find Hub share item location feature into WorldTracer.
Thai Airways, using Sita's Auto Reflight, compressed a three-minute task to a single second per bag across nine airports.
"Airports are operating closer to their physical limits every year, and the answer isn't always more concrete. Data, AI and predictive operations let us get more out of the airport we already have, at check-in, security, the gate, on the apron and in baggage halls.
"Baggage shows the formula works. Solutions such as Total Airport Management take the same approach across the whole lifecycle, so airports can absorb growth without expanding their footprint," said David Lavorel, CEO at Sita.
Three in four airlines plan to invest in AI over the next two years, while half plan to give passengers real-time baggage updates.
Industry-wide baggage tracking under IATA Resolution 753 has now passed the 50% mark, with full compliance targeted for 2027. The report says this creates a stronger foundation for improving baggage performance globally, including in Africa.
