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.
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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TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...
In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...
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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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