… as industry loses $6.3bn to baggage disruption
Africa continues to record the world’s highest rate of mishandled airline baggage despite significant improvements in global baggage handling, according to the 2026 SITA Baggage IT Insights Report.
The report shows that while airlines and airports reduced global baggage mishandling by 23 per cent in 2025 through increased adoption of digital technologies, Africa still recorded 12.1 mishandled bags per 1,000 passengers – the highest among all regions.
Globally, baggage mishandling fell to 4.9 bags per 1,000 passengers from 6.3 in 2024, while the total number of mishandled bags declined 19 per cent to 24 million, even as passenger traffic reached a record five billion travellers.
Baggage Errors Still Cost Industry $6.3bn
Despite the improvements, baggage disruptions continue to impose a heavy financial burden on the aviation industry.
According to the report, mishandled baggage cost airlines an estimated US$6.3 billion in 2025, representing about 15 per cent of the industry’s total profits.
SITA also introduced a new industry benchmark, estimating that the average cost of handling a mishandled bag has risen to US$260, replacing the long-standing estimate of US$150.
With airlines earning an average net profit of just US$8 per passenger, the report noted that a single mishandled bag can wipe out the profit generated from more than 30 passengers.
Africa Faces Infrastructure, Connectivity Challenges
The report attributed Africa’s high baggage mishandling rate largely to the complexity of international travel involving multiple airlines, airports and baggage handlers.
It also identified ageing airport infrastructure and capacity constraints across parts of the continent as key contributors to baggage disruptions.
However, SITA described Africa as the region with the greatest opportunity for improvement through wider deployment of end-to-end baggage tracking, artificial intelligence, biometric technologies and enhanced data sharing across the aviation ecosystem.
Industry-wide implementation of baggage tracking under IATA Resolution
753 has now surpassed 50 per cent globally, with full compliance targeted by 2027, laying the foundation for improved baggage handling across Africa.
Technology Driving Better Performance
The Geneva-based air transport technology provider said the sharp decline in baggage mishandling reflects the aviation industry’s growing investment in digital transformation rather than any single technological breakthrough.
Instead, the gains have been driven by better integration of real-time data sharing, AI-powered baggage routing, biometric bag-drop systems and connected passenger devices.
“Baggage is shifting from a logistical problem to a digital service”, Portfolio Director, Baggage at SITA, Nicole Hogg said.
“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”.
AI, Smart Tracking Deliver Results
The report highlighted several technology deployments already improving baggage performance worldwide.
According to SITA, Apple’s Find My integration with the SITA WorldTracer platform reduced permanently lost baggage by 90 per cent during its first year while shortening delayed baggage recovery times by 26 per cent.
The company has also integrated Google’s Find Hub location-sharing feature into WorldTracer, while Thai Airways has reduced baggage reflight processing from three minutes to just one second per bag across nine airports using SITA’s Auto Reflight solution.
SITA Chief Executive Officer, David Lavorel, said airports are increasingly relying on data and predictive technologies to manage growing passenger volumes without major infrastructure expansion.
“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”, he said.
Industry Eyes Smarter Baggage Handling
Looking ahead, the report said delayed baggage accounts for about 70 per cent of total baggage-related costs, mainly due to recovery, rerouting and delivery expenses, while compensation accounts for most costs associated with lost or damaged luggage.
Transfer baggage remains the biggest source of mishandling, accounting for 39 per cent of all cases in 2025, although this has improved slightly from 41 per cent a year earlier.
The report found that three out of every four airlines plan to invest in artificial intelligence over the next two years, while half intend to provide passengers with real-time baggage tracking.
Future innovations expected to reshape baggage handling include home baggage tagging, remote bag check-in before arriving at the airport and systems that allow baggage to travel separately from passengers where operationally necessary.