REVISED LIABILITY LIMITS FOR OVERSALES AND MISHANDLED DOMESTIC BAGGAGE ARE NOW EFFECTIVE
February 12, 2025
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In late 2024, DOT issued a final rule increasing liability limits for denied boarding (i.e., oversales) compensation that U.S. and foreign air carriers may impose as well as raising the liability limit U.S. carriers may impose for mishandled baggage in domestic air transportation. For reference, the compensation limits for oversales and mishandled domestic baggage are adjusted for inflation every two years. The denied boarding compensation that U.S. and foreign air carriers may impose rose from $775 and $1,550 to $1,075 and $2,150. Likewise, the liability limit U.S. carriers may impose for mishandled baggage in domestic air travel increased from $3,800 to $4,700. Carriers should note that revised amounts became effective January 22, 2025, and thus all flights on or after that date will be subject to the increased dollar amounts.
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