ICAO Announces Increased Compensation Limits under the Montreal Convention 2024

The International Civil Aviation Organisation (ICAO) has announced higher compensation limits for international flights, effective from December 28, 2024. These adjustments to the Montreal Convention liability limits will cover death, injury, delays, baggage, and cargo issues.

ICAO has informed the 140 States Parties that these limits will increase in line with the Convention’s built-in review mechanism, adjusting for inflation every five years.

This ensures that compensation remains appropriate over time. This is the fourth review since the treaty came into force in 2003.

Key Provisions of the Montreal Convention

The Montreal Convention 1999 (MC99), formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, established a comprehensive framework for the international carriage of passengers, baggage, and cargo by air.

It sets liability limits for airlines, ensuring fair compensation for consumers in cases of injury, death, delay, baggage, and cargo issues.

Additionally, it allows for the use of electronic tickets and air waybills, significantly reducing paperwork and operational costs for airlines, thus simplifying processes and enabling more efficient risk management.

Juan Carlos Salazar, ICAO Secretary-General, stated: “ICAO continues to advocate for the universal ratification of MC99. 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 shippers of cargo while enabling the unified and equitable development of air services.”

Revised Compensation Limits

The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund.

As of October 18, 2024, 1 SDR was valued at US$ 1.33318. The limits will be revised as follows:

1. The limit for death or bodily injury will increase from 128,821 SDRs to 151,880 SDRs  (about US$202,500) (originally 100,000 SDRs in 2003).
2. The limit for delay in passenger transport will rise from 5,346 SDRs to 6,303 SDRs  (about US$8,400) (originally 4,150 SDRs in 2003).
3. The limit for destruction, loss, damage, or delay of baggage will increase from 1,288 SDRs to 1,519 SDRs (about US$2,000) (originally 1,000 SDRs in 2003).
4. The limit for destruction, loss, damage, or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram (about US$35) (originally 17 SDRs in 2003).

ICAO has urged States Parties to MC99 to “make provisions as necessary in accordance with their domestic legal requirements, to give full effect as of 28 December 2024 to the revised limits.”