Few moments in travel feel as flat as watching the carousel empty out while your suitcase never shows up. The first question most people ask is what the airline actually has to do about it. The answer sits in a handful of federal rules, and several of them changed recently.
Some of those rules are firm, with hard deadlines and clear refund duties. Others are looser, and passengers often have to push to get what’s due. Here’s how the Department of Transportation framework works as of 2026.
The Rule That Changed Bag Fee Refunds
The DOT’s automatic refund rule has been in force since October 28, 2024.[1] It was designed to make refunds easier when airlines cancel or significantly change flights, significantly delay checked bags, or fail to provide extra services a passenger bought.[2] Before it, bag fee refunds depended heavily on each airline’s own policy.
The rule also covers more than luggage. Airlines must issue refunds automatically, without passengers having to explicitly request them or jump through hoops.[2] For bags, though, one condition still applies, and it’s covered below.
The Time Limits That Trigger a Refund
The clock starts when your flight reaches the gate. A domestic bag that isn’t delivered within 12 hours of arrival qualifies for a checked bag fee refund.[3] For international trips, the window is longer and depends on the flight.
Specifically, the trigger is 15 hours for international flights with segments of 12 hours or less, and 30 hours when any segment runs longer than 12 hours.[4] So a short hop to Mexico and a long haul to Asia are treated differently. Check which category your itinerary falls into before assuming you’ve missed the cutoff.
Why the Mishandled Baggage Report Matters
The refund isn’t truly hands off. You’re entitled to it only if you file a mishandled baggage report.[3] That report is the formal record that your bag didn’t arrive with you.
Do it at the airport, before you leave. Filing should be done with the operating airline,[5] which matters on tickets sold by one carrier but flown by another. Once the report exists, the refund duty follows from it, and you shouldn’t need to chase the money.
How Fast the Money Has to Arrive
Refund timing is spelled out too. Airlines and ticket agents must refund within seven business days for credit card purchases and 20 calendar days for other payment methods.[2] Those deadlines run from the point a refund becomes due.
The form of payment matters as well. Refunds must be automatic and in cash or the original form of payment, and vouchers or travel credits are acceptable only if the passenger agrees.[6] If an airline offers a credit when you’re owed cash, you can say no.
Reimbursement for Essentials While You Wait
A refunded bag fee doesn’t cover the toothbrush and clean shirt you buy on arrival. Those fall under a separate expectation. Airlines must cover reasonable and verifiable expenses you incur while your bag is delayed.[7]
Think toiletries, chargers, and basic clothing rather than anything extravagant. Airlines can’t impose arbitrary daily limits on these expenses.[8] Keep every receipt, because the claim is only as strong as your paperwork. The airline may have its own view of what counts as reasonable, so expect some back and forth.
What You Can Claim If the Bag Is Lost
A delayed bag eventually becomes a lost one if it never turns up. Once an airline determines your bag is lost, it must compensate you for the contents, subject to depreciation and liability limits, and refund any fees you paid to transport it.[9] That fee refund applies to lost bags as well as late ones.
Compensation isn’t based on what you paid. Airlines pay the depreciated value of your lost items, not the original purchase price.[10] Receipts, photos, and purchase records help you make the case. Airlines can also exclude or limit liability for categories like electronics, jewelry, and cash,[11] so those are better kept in your carry on.
Domestic Limits Versus International Limits
There’s a ceiling on what you can recover, and it varies by trip. For domestic flights, DOT regulation lets airlines cap liability for lost, damaged, or delayed bags, with the maximum set at $4,700 per passenger.[9] That figure is adjusted for inflation every two years.[12] It’s a maximum rather than a guaranteed payout.
Most international flights work differently. A treaty called the Montreal Convention applies, with a maximum of 1,519 Special Drawing Rights, roughly $2,175, per passenger.[9] That was raised from 1,288 SDR on December 28, 2024.[11] If your belongings are worth more than the cap, you can buy excess valuation from the airline at check in, which isn’t insurance but raises its potential liability.[12]
What the DOT Rules Don’t Cover
The bag fee refund is narrower than many people assume. It covers the fee you paid to check the bag, not the value of what was inside.[4] Compensation for contents runs through the separate liability rules described above.
The US also has nothing like Europe’s flat payouts for delays. There is no US law requiring cash compensation for delays the way EU261 does.[13] A late bag gets you a fee refund and reasonable expenses, but not a fixed cash award.
How Often Bags Actually Go Missing
The odds are in your favor, though not by a wide margin. US airlines mishandled about 1.05 million bags between January and June 2026, out of 213 million.[14] The rate across reporting airlines fell from 0.52 per 100 bags in the first half of 2025 to 0.49 in the first half of 2026,[15] or roughly one bag in every two hundred.
Carriers vary quite a bit. American Airlines had the worst US rate at 0.73 per 100 bags, while Allegiant had the best at 0.12.[16] Globally, delayed bags make up the bulk of mishandling, at roughly three quarters in SITA’s 2024 breakdown,[17] so a late suitcase is far likelier than a vanished one.
Steps to Take at the Airport
File the mishandled baggage report before you leave the baggage area, and keep a copy or reference number. Then save receipts for any essentials you buy while you wait. The DOT rule requires refunds in the original form of payment,[1] so check your card statement against the deadlines above.
If your bag is lost for good, submit a claim with documentation of what was inside, up to the applicable limit for your trip. If the airline stalls on a refund you’re owed, you can file a complaint with the DOT. Bags that arrive late but within the window don’t trigger a fee refund, though reasonable expenses can still be claimed.
