There is a holiday stress that starts the moment a suitcase just vanishes behind the check in desk. Travellers board their flight and spend the next few hours wondering if their luggage will make it to the baggage belt because of this, which adds so much anxiety to what could’ve been a fun trip.
So, the good news here is that mishandled baggage is becoming less of a problem thanks to tech. According to the SITA 2026 Baggage IT Insights report, baggage mishandling went below pre pandemic levels for the first time in 2025, even as global passenger traffic reached new highs.
The report says mishandled baggage rates went down 23% in 2025, which is the best progress outside the pandemic period. Around 5 billion passengers travelled during the year, although 24 million bags were still mishandled. Over a longer timeframe, baggage mishandling has gone down by almost three quarters since 2007.
That is important because mishandled luggage is expensive. SITA says baggage mishandling costs the aviation sector $6.3 billion every year. The average cost per bag is $260. According to the report, airline net profit averages about $8 per passenger, meaning a single mishandled suitcase can wipe out the profit from more than 30 seats.
What Is Helping Bags Get Where They Should?
According to SITA, the improvement did not come from one breakthrough product. It came from better connections between systems. Real time data sharing, AI routing, biometric bag drop technology and connected passenger devices all contributed.
Nicole Hogg, Portfolio Director Baggage at SITA, said, “Baggage is shifting from a logistical problem to a digital service. 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.”
Travellers are becoming active participants in the process because phones, tracking devices and connected services mean passengers can often see where a bag is long before they reach the baggage carousel.
More from Tech
- The Supreme Court Just Blocked Geofence Warrants – But What Does It Mean For Your App
- Startups Are Racing To Support Ozempic Users – But Is The Market Moving Faster Than The Science?
- Digital ID Is Coming To Banking Apps, But Will Customers Trust It?
- Your Android Is A Seismometer – How Google Warned 11 Million People Of An Earthquake
- New Vs Refurbished: Which Tech Products Are UK Shoppers Choosing In 2026?
- We Gave Robots The Steadiest Hands In Medicine – Now What?
- Are Antivirus Subscriptions Essential Protection Or Clever Marketing?
- Is The UK’s Psychedelic Medicine Wave Getting Ahead Of NHS Reality?
The report says half of airlines intend to give passengers real time baggage updates over the next two years, giving travellers more information throughout their trip.
How Is Tech Helping Recover Luggage Faster?
One of the most fascinating examples comes from Apple’s Find My network and SITA WorldTracer. According to the report, the integration reduced permanently lost luggage by 90% during its first year and shortened delayed baggage recovery times by 26%.
SITA recently added Google’s Find Hub share item location feature into WorldTracer as well, giving airlines and passengers another tool to locate missing baggage.
The technology is helping airline staff too, with examples like Thai Airways adopting SITA’s Auto Reflight system and reduced a task that previously took 3 minutes to just a second for each bag across 9 airports.
For passengers, that means less waiting, fewer phone calls and a better chance of getting luggage back quickly when something goes wrong.
What Would This Mean For Baggage Handling?
Even with progress, there certainly is room for improvement. SITA says delayed baggage accounts for around 70% of total baggage mishandling costs, mainly through recovery, rerouting and delivery expenses. Lost or damaged bags generate compensation costs that can account for up to 70% of related expenses.
Transfers continue to be the biggest source of baggage mishandling. According to the report, transfer baggage accounted for 39% of cases in 2025, lower than the 41% recorded a year earlier.
Airports are also dealing with rising passenger traffic and limited physical space. David Lavorel, CEO at SITA, said, “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.”
According to the report, 3 in 4 airlines are planning to invest in AI during the next couple of years. Industry baggage tracking under IATA Resolution 753 has passed the 50% level, with full compliance targeted for 2027.
Travellers may also start to see some new ideas coming in over the next few years. The report mentions tagging bags at home, leaving bags in the car and luggage that does not need to travel on the same aircraft as its owner. The running theme here has to do with giving passengers more visibility and helping airlines find and recover bags much faster than before.
