In 2026, the amount an airline must pay for lost luggage is governed by international and domestic laws, with limits that are periodically adjusted for inflation. For international flights, the Montreal Convention sets a liability limit of approximately 1,288 SDR (Special Drawing Rights) per passenger, which converts to roughly $1,735 USD. This is a maximum limit, not a flat payment; you must prove the value of the items lost. For US domestic flights, the Department of Transportation (DOT) has a higher limit of $3,800 per passenger. It is important to note that airlines generally do not pay for high-value items like jewelry, electronics, or cash unless you "declared excess value" and paid a fee at check-in. In 2026, if your bag is missing for more than 21 days, it is officially declared "lost," and the airline is required to reimburse you for the depreciated value of your belongings plus any baggage fees you paid. Always keep receipts for "essential" purchases (like toiletries and clothing) made while the bag was delayed, as these are also reimbursable.