American Airlines · American Airlines Terms of Use · View original document ↗

Baggage Liability Cap (Montreal Convention)

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Recent governance activity American Airlines recorded 3 documented changes in the last 30 days.
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Document Record

What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

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.

Recent Activity

This document changed recently

Medium Jun 6, 2026

The updated Terms of Use no longer include explicit statements about how American Airlines uses performance cookies to analyze site usage and track popular pages, or how functional cookies remember your preferences like language and region settings. Previously, the terms disclosed that cookies are essential to site operation and cannot be rejected. The removal of these disclosures means users visiting the American Airlines website will not find this granular explanation of cookie purposes in the terms themselves, though cookie collection may continue through other disclosure mechanisms such as a separate privacy policy or cookie banner.

View change record →

Consumer impact (what this means for users)

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.

How other platforms handle this

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To the maximum extent permitted by applicable law, in no event will Synthesia's aggregate liability to you under or in connection with this Agreement exceed the total fees paid or payable by you to Synthesia in the twelve (12) month period immediately preceding the event giving rise to the claim. In...

Google AI Studio Medium

Google's total liability to you for any claims under these terms, including for any implied warranties, is limited to the amount you paid us to use the Gemini API (or, if we choose, to supplying you the services again) in the 12 months before the breach.

Duolingo Medium

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DUOLINGO SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS OR REVENUES, WHETHER INCURRED DIRECTLY OR INDIRECTLY, OR ANY LOSS OF DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESUL...

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▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(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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Applicable agencies

  • FTC
    The FTC has authority over unfair or deceptive practices in consumer-facing disclosures, including airline baggage liability limit notifications
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
American Airlines Terms of Use
Entity
American Airlines
Document last updated
May 5, 2026
Tracking information
First tracked
May 21, 2026
Last verified
May 21, 2026
Record ID
CA-P-012960
Document ID
CA-D-00632
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
6457e63937227a5e7f6c6a4081c57e892564cd15c43b2faaaf8058239b0d508f
Analysis generated
May 21, 2026 03:26 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: American Airlines
Document: American Airlines Terms of Use
Record ID: CA-P-012960
Captured: 2026-05-21 03:26:09 UTC
SHA-256: 6457e63937227a5e…
URL: https://conductatlas.com/platform/american-airlines/american-airlines-terms-of-use/baggage-liability-cap-montreal-convention/
Accessed: June 8, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does American Airlines's Baggage Liability Cap (Montreal Convention) clause do?

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.

How does this clause affect you?

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.

Is ConductAtlas affiliated with American Airlines?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by American Airlines.