Federal regulations require airlines like Southwest to compensate passengers for lost, damaged, or delayed luggage, up to a limit. For domestic flights, that can be up to $3,800, according to the DOT.

As of early 2026, Southwest Airlines maintains a maximum liability limit of $4,700 per passenger for baggage-related issues on domestic flights, in accordance with 14 CFR § 254.4. This reimbursement covers proven damages resulting from the loss, damage, or substantial delay of checked or carry-on luggage. To qualify, passengers must document the original purchase price of items (minus depreciation) and demonstrate reasonable efforts to minimize their losses. For flight delays or cancellations within the airline's control lasting three hours or more, Southwest's policy also includes reimbursement for "reasonable" expenses such as meals, hotel accommodations, and ground transportation. It is important to note that for international travel, different limits apply under the Montreal Convention (approximately $1,700). Passengers can purchase "excess valuation" at check-in for an additional fee if their belongings exceed the standard $4,700 cap.