The International Civil Aviation Organization (ICAO) has officially implemented higher compensation limits for international flights, which went into effect on December 28, 2024.
The new liability limits include an increase to $202,500 for death or injury, $8,400 for delays, and adjustments for baggage and cargo issues.
This adjustment follows ICAO’s announcement in October that the liability limits would be updated in line with the Montreal Convention’s built-in review mechanism.
This mechanism ensures that the limits are adjusted for inflation every five years, keeping pace with the evolving needs of the aviation industry and ensuring fair compensation for passengers and cargo shippers.
ICAO’s statement in October read, “Travelers will soon benefit from higher compensation limits for international flights, with the International Civil Aviation Organization (ICAO) announcing that the Montreal Convention liability limits for death, injury, delays, baggage, and cargo issues will increase on 28 December 2024.”
On Saturday, Michael Achimugu, Director of Public Affairs & Consumer Protection at the Nigerian Civil Aviation Authority (NCAA), shared several photos of a news publication on his X account, announcing the increment.
His post read, “Important update: International passengers will now get more benefits as liability limits increase becomes effective.”
The revised compensation limits are as follows:
- Death or bodily injury: The limit increases from 128,821 Special Drawing Rights (SDRs) to 151,880 SDRs (approximately $202,500).
- Passenger transport delays: The limit rises from 5,346 SDRs to 6,303 SDRs (around $8,400).
- Baggage loss or delay: The limit increases from 1,288 SDRs to 1,519 SDRs (approximately $2,000).
- Cargo loss or damage: The limit rises from 22 SDRs to 26 SDRs per kilogram (around $35).
More insight
This marks the fourth review since the treaty’s implementation in 2003, ensuring that compensation levels remain appropriate and reflective of modern travel needs.
Formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, the Montreal Convention provides a unified framework for the international carriage of passengers, baggage, and cargo by air.
The revised compensation limits are designed to balance the interests of travelers, cargo shippers, and the aviation industry.
- ICAO has informed the 140 State Parties to the Montreal Convention that the revised limits are now in effect and has encouraged them to make the necessary provisions to fully implement the changes in accordance with their domestic legal frameworks.
- By updating the compensation limits, ICAO ensures fair compensation for passengers and cargo shippers while helping airlines streamline operations and reduce paperwork.
The modernization of these limits also supports the broader goal of improving the overall passenger experience by making compensation processes more efficient and responsive to the needs of travelers in today’s dynamic aviation environment.