The agreement states that American Airlines' liability for lost, damaged, or delayed baggage on international flights is capped at 1,288 Special Drawing Rights (SDR) per passenger under the Montreal Convention.
This analysis describes what American Airlines's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes the maximum recoverable amount for international baggage claims, denominated in SDRs, and limits passengers' ability to seek compensation beyond the treaty-specified ceiling regardless of actual loss value. The Montreal Convention framework is mandatory for international carriage and the stated cap reflects treaty obligations rather than a discretionary policy choice.
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View change record →Under this clause, passengers on international flights are limited to a maximum baggage claim of 1,288 SDR (approximately $1,700 USD depending on current exchange rates) regardless of the actual value of lost or damaged contents. Passengers with high-value items may wish to consider additional travel insurance or declare excess valuation at check-in where that option is available.
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"American's liability for loss, damage, or delay of baggage on international travel is governed by the Montreal Convention. Under the Montreal Convention, liability for destruction, loss, damage or delay of baggage is limited to 1,288 Special Drawing Rights per passenger.— Excerpt from American Airlines's American Airlines Terms of Use
(1) REGULATORY LANDSCAPE: This provision is governed by the Montreal Convention (Convention for the Unification of Certain Rules for International Carriage by Air, 1999), which is incorporated into U.S. law and enforced by the U.S. DOT and through private right of action. The SDR cap is periodically adjusted by ICAO; compliance teams should verify the current SDR-to-currency conversion applicable at claim time. (2) GOVERNANCE EXPOSURE: Medium. The liability cap is consistent with treaty obligations and standard airline industry practice for international carriage. Exposure arises primarily if the airline fails to properly notify passengers of applicable limits, which may engage DOT disclosure requirements. (3) JURISDICTION FLAGS: The Montreal Convention applies to international carriage between signatory states. For domestic U.S. flights, different liability rules apply. EU passengers departing from EU airports on international flights may have additional rights under EU Regulation 261/2004, which operates independently. (4) CONTRACT AND VENDOR IMPLICATIONS: Corporate travel agreements and third-party booking platform contracts should reference the applicable CoC and Montreal Convention limits. Excess valuation declarations, if offered, create a separate contractual mechanism that procurement teams should document for high-value shipments or equipment. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should audit passenger-facing disclosures at booking and check-in to ensure SDR cap notification meets DOT and Montreal Convention disclosure requirements. Internal claims processing procedures should be mapped against the treaty-mandated timeframes for liability to attach.
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This provision establishes the maximum recoverable amount for international baggage claims, denominated in SDRs, and limits passengers' ability to seek compensation beyond the treaty-specified ceiling regardless of actual loss value. The Montreal Convention framework is mandatory for international carriage and the stated cap reflects treaty obligations rather than a discretionary policy choice.
Under this clause, passengers on international flights are limited to a maximum baggage claim of 1,288 SDR (approximately $1,700 USD depending on current exchange rates) regardless of the actual value of lost or damaged contents. Passengers with high-value items may wish to consider additional travel insurance or declare excess valuation at check-in where that option is available.
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