At a glance
- Passengers up. 5 billion globally in 2025, from 4.8 billion in 2024.
- Mishandling down. Rate fell 23% to 4.9 per 1,000 passengers; total volumes fell 19% to 24 million bags. Both are now below pre-pandemic levels.
- Cost to the industry. $6.3 billion in 2025, equal to about 15% of total airline industry profit.
- New cost benchmark. $260 per mishandled bag on average, replacing the long-cited and outdated $150 figure.
GENEVA, June 30, 2026 (GLOBE NEWSWIRE) -- In 2025, the industry made its strongest progress outside the pandemic, even as passenger numbers rise. Mishandled baggage rates dropped 23%, a sign that digital transformation efforts are taking hold, according to the 2026 SITA Baggage IT Insights Report, the 20th annual edition of the industry benchmark.
But the bigger story is not just improvement. It's the gap that remains. Mishandling still costs the industry $6.3 billion annually. Each bag carries an average cost of $260. With net profit averaging just $8 per passenger, one mishandled bag wipes out the profit from more than 30 seats sold, and five erase the profit of an entire flight.
Passenger volumes are rising faster than the infrastructure designed to handle them. In 2025 alone, 5 billion passengers traveled globally, yet 24 million bags were still mishandled. Across the longer term, mishandling has fallen by close to three-quarters since 2007.
What changed in 2025 was not one technology, but a shift in how systems connect: real-time data sharing, AI routing, biometric bag drop, and connected passenger devices.
"Baggage is shifting from a logistical problem to a digital service," said Nicole Hogg, Portfolio Director Baggage, SITA. "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."
Real-world results show the formula at work. Apple's Find My integration with SITA WorldTracer cut permanently lost luggage by 90% in its first year and shortened delayed-bag recovery by 26%. SITA also recently integrated Google's Find Hub share item location feature into WorldTracer. Thai Airways, using SITA's Auto Reflight, compressed a three-minute task to a single second per bag across nine airports.
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."
The report pinpoints where the next gains can come from. Delayed bags account for around 70% of the total cost, most of it operational, in recovery, rerouting and delivery. For lost or damaged bags, up to 70% of the cost is compensation. Transfers remain the core mishandling driver at 39% of cases in 2025, down from 41% the year before.
The trajectory is clear. Three in four airlines plan to invest in AI over the next two years. Half plan to give passengers real-time baggage updates. Industry-wide baggage tracking under IATA Resolution 753 has now passed the 50% mark, with full compliance targeted for 2027. The next horizon is already on the runway: tagging bags at home, leaving bags in the car, and bags that don't need to fly on the same aircraft as the passenger.
Read the report. The SITA 2026 Baggage IT Insights Report is available at https://www.sita.aero/resources/surveys-reports/sita-baggage-it-insights/
About SITA
SITA is the air transport industry's tech engine, making travel safer, easier, and more sustainable for everyone. From the earliest days of commercial aviation to today's digital frontiers, SITA has been there, connecting the industry and helping it evolve through every leap forward.
With around 2,500 customers, SITA technology supports over 1,000 airports and more than 19,600 aircraft worldwide. It also helps over 70 governments strike the balance between secure borders and seamless journeys. Behind the scenes, SITA bridges 45-50% of the industry's data exchange, enabling a highly complex global network to operate smoothly and reliably, every step of the way.
SITA is transforming fast. From advanced self-service and operations control to airport design and digital borders, it is shaping the next generation of travel through key acquisitions like Materna IPS, ASISTIM, and CCM. It is also expanding beyond aviation with initiatives such as SmartSea, bringing its trusted technologies to cruise, rail, and urban air mobility.
This transformation is about more than new products. SITA is investing in the right skills, tools, and partnerships to help the industry move with greater intelligence and agility, bringing together smart systems, seamless data, and sustainable innovation. Because as global travel surges, flow is everything.
As part of our bold climate strategy, SITA is cutting emissions by 4.2% each year and targeting net zero by 2050. SITA's science-based targets are validated by the SBTi, and its growing portfolio is helping customers reduce their own carbon footprints too.
Owned by the industry and driven by its needs, SITA operates in more than 200 countries and territories.
Find out more at www.sita.aero
Contact: media.relations@sita.aero
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/126e8b0c-3e68-4a96-8b87-6e3617cc79f3
