ICAO Announces Increased Liability Limits for Passengers on Int’l Flights
Passengers and cargo shippers on international flights will soon benefit from higher compensation limits, following the announcement by the International Civil Aviation Organization (ICAO) that liability limits under the Montreal Convention will be raised.
In a statement, the organisation stated that the new limits, which address compensation for death, injury, delays, baggage, and cargo issues, will take effect on 28 December 2024.
The Montreal Convention, formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, established a unified framework for air travel, setting liability caps for airlines to ensure fair compensation for affected passengers and cargo shippers.
This treaty, which came into force in 2003, is periodically reviewed to account for inflation, and the upcoming increase marks the fourth review under its five-year review mechanism.
According to ICAO, the 140 States Parties to the Convention were officially informed of the new limits, which reflect inflationary adjustments.
The organisation has reiterated the importance of these periodic updates, which maintain the appropriateness of compensation levels over time.
By ensuring this, passengers and cargo handlers continue to benefit from equitable treatment when issues arise during international travel.
ICAO said the revisions will see the following changes to the compensation limits:
The limit for death or bodily injury will increase from 128,821 Special Drawing Rights (SDRs) to 151,880 SDRs, which is approximately US$202,500.
For delays in passenger transport, the limit will rise from 5,346 SDRs to 6,303 SDRs, translating to around US$8,400.
Compensation for the destruction, loss, damage, or delay of baggage will be raised from 1,288 SDRs to 1,519 SDRs, equivalent to about US$2,000.
The limit for destruction, loss, damage, or delay of cargo will increase from 22 SDRs to 26 SDRs per kilogram, or roughly US$35.
ICAO’s Secretary General, Juan Carlos Salazar, emphasised the importance of the Montreal Convention, saying: “This Convention is fundamental in ensuring the protection of consumer interests in international air travel.
“By promoting harmonisation and codification of rules governing international carriage by air, MC99 benefits passengers and the shippers of cargo while enabling the unified and equitable development of air services.”
The Montreal Convention, which modernised international aviation regulations, also introduced electronic tickets and air waybills, reducing operational costs and improving efficiency for airlines.
The liability limits under the treaty are expressed in SDRs, a unit of account set by the International Monetary Fund (IMF).
As of 18 October 2024, 1 SDR was valued at approximately US$1.33318.
ICAO has urged all States Parties to make the necessary legal adjustments in their domestic laws to ensure that the new compensation limits are fully implemented by 28 December 2024.
This move underscores ICAO’s ongoing efforts to ensure that international air travellers and cargo shippers are treated fairly and equitably under the globally recognised treaty.
The Montreal Convention continues to be a key instrument in promoting fairness and modernity in international air transport, and ICAO remains committed to its universal ratification to guarantee the protection of travellers worldwide.
