If American loses or damages your bags, they will only pay up to a set dollar limit, which is $3,800 for domestic flights and roughly the equivalent in SDRs for international flights, unless you paid to declare a higher value beforehand.
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
If your checked luggage contains items worth more than the liability cap and you did not declare a higher value, you may not recover the full cost of your loss from American regardless of fault.
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 →The provision was refocused to address only international Montreal Convention liability; the domestic $3,800 limit was removed entirely.
View full change record →The removal of the specific domestic baggage liability limit of $3,800 leaves domestic passengers without a clearly stated maximum liability cap in the current terms.
View full change record →Passengers whose baggage contains valuables exceeding the standard liability cap may recover only a limited amount for loss or damage; declaring excess value in advance and paying the associated fee is the primary mechanism available to increase that limit.
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"For domestic travel, American's liability for loss, damage or delay of baggage is limited to $3,800 per ticketed customer unless a higher value is declared in advance and additional charges are paid. For international travel, liability is limited by the Montreal Convention to 1,288 Special Drawing Rights (SDRs) per passenger.— Excerpt from American Airlines's American Airlines Terms of Use
REGULATORY LANDSCAPE: Domestic baggage liability is governed by DOT regulations and the CoC; the $3,800 domestic cap must be maintained at or above the DOT minimum and is subject to periodic DOT adjustment. International baggage liability is governed by the Montreal Convention, with the 1,288 SDR limit subject to ICAO review every five years; enforcement authority for treaty compliance rests with the DOT and applicable foreign civil aviation authorities. Where the CoC asserts limits below treaty minimums, the treaty takes precedence. GOVERNANCE EXPOSURE: Medium. The liability cap is standard across the U.S. airline industry and grounded in both DOT regulation and international treaty; however, failure to update the stated dollar amount when DOT adjusts the domestic minimum would create regulatory noncompliance exposure. JURISDICTION FLAGS: EU passengers on flights departing the EU may have additional protections under EC Regulation 889/2002, which implements the Montreal Convention and may provide additional procedural rights. California and other states do not independently override Montreal Convention limits. CONTRACT AND VENDOR IMPLICATIONS: Corporate travel programs and travel management companies should inform clients of the baggage liability cap and excess valuation options to manage expectations and potential reimbursement claims. Codeshare and interline agreements should address how liability is allocated when baggage is handled by a partner carrier. COMPLIANCE CONSIDERATIONS: Legal teams should confirm the domestic liability figure is current against the DOT minimum and that the SDR conversion is disclosed accurately. Claims handling procedures should be audited to ensure consistent application of the cap and the excess valuation process.
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If your checked luggage contains items worth more than the liability cap and you did not declare a higher value, you may not recover the full cost of your loss from American regardless of fault.
Passengers whose baggage contains valuables exceeding the standard liability cap may recover only a limited amount for loss or damage; declaring excess value in advance and paying the associated fee is the primary mechanism available to increase that limit.
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