Montreal Convention 2025 Update: New SDR Liability Caps Explained

Montreal Convention 2025 SDR liability caps reflect ICAO's five-year inflation review under MC99 Article 24. The Montreal Convention 1999 mandates a periodic adjustment of compensation amounts to maintain real value against inflation. The 2024 review (effective late 2024 and into 2025) increased the baggage liability cap to 1,288 SDR (approximately USD 1,710 in April 2026), the delay damages cap to 5,346 SDR (approximately USD 7,103), and the death and bodily injury cap to 128,821 SDR (approximately USD 171,140). Special Drawing Rights are an IMF basket reserve asset (USD, EUR, JPY, GBP, CNY) recalibrated daily.

The cap that applies to your claim is the cap on the date of judgment or settlement. Claims pending across the 2024 review effective date may use the new (higher) cap.

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  Baggage liability (Article 17): increased from 1,131 SDR (2019 review) to 1,288 SDR (2024 review). Approximately 14% increase.

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  Delay damages (Article 19): increased from 4,694 SDR to 5,346 SDR. Approximately 14% increase.

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  Death and bodily injury (Article 21): increased from 113,100 SDR to 128,821 SDR. Approximately 14% increase.

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  Cargo liability (Article 22.3): increased from 19 SDR per kg to 22 SDR per kg.

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  Effective date: late 2024, with most carriers adopting through Q1 2025.

Article 24 of the Montreal Convention 1999 mandates a five-year inflation review. The mechanics:

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  Five-year review interval: 2009, 2014, 2019, 2024, 2029.

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  Inflation index: ICAO uses the IMF SDR basket inflation aggregate, weighted by the basket currencies (USD, EUR, JPY, GBP, CNY).

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  Automatic adjustment: increases tied to cumulative inflation, not negotiated.

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  Effective without ratification: state parties accept adjustments via Article 24 without separate ratification.

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  Carrier compliance: airlines update internal policies on the effective date.

SDR is a basket; the daily IMF rate determines USD equivalence:

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  1 SDR = approximately USD 1.33 as of late April 2026.

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  1,288 SDR baggage cap = USD 1,710.

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  5,346 SDR delay cap = USD 7,103.

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  128,821 SDR death cap = USD 171,140.

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  Daily fluctuation: SDR-to-USD rate published at imf.org/external/np/fin/data/rms_sdrv.aspx.

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  Applicable rate: the rate on the date of judgment or settlement.

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  Disruption occurred before late 2024 review: old caps (1,131 SDR baggage, 4,694 SDR delay) typically apply if judgment was before review effective date.

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  Disruption occurred after review effective date: new caps (1,288 SDR baggage, 5,346 SDR delay) apply.

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  Pending claims spanning review date: courts and arbitrators apply the cap on the date of judgment, which usually means the new (higher) cap on long-running cases.

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  Settlements at carrier portal stage: typically apply the cap effective at carrier processing date.

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  Insurance claims: separate. Travel insurance pays per policy terms, not SDR caps.

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  Family of 4 with lost baggage: 4 x 1,288 SDR = 5,152 SDR (USD 6,840) maximum cap on documented loss.

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  Solo business traveler with delay damages: up to 5,346 SDR (USD 7,103) on documented economic loss.

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  International death claim: up to 128,821 SDR (USD 171,140) strict liability; carrier negligence required above.

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  Cargo loss of 100 kg: up to 22 SDR per kg = 2,200 SDR (USD 2,920) cap.

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  Excess valuation declaration: overrides the standard caps up to declared amount.

1. 1

   Identify the disruption type: baggage (Article 17), delay (Article 19), or bodily injury (Article 21).

2. 2

   Document actual economic loss with receipts. Carriers settle on documented loss up to the cap.

3. 3

   Multiply the relevant SDR cap by the current IMF rate for USD equivalent.

4. 4

   Submit the claim citing the relevant Article and the new SDR cap. Carriers internally use SDR.

5. 5

   If carrier denies or undersettles, escalate within 2-year limitation period under Article 35.

For broader baggage and Montreal Convention framework, see airline lost baggage compensation guide, SDR to USD: what the Montreal Convention liability cap means in real money, and Montreal Convention for business travelers: higher claims for work trips.

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  Five-year review under Article 24: 2029.

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  Cumulative 2024-2029 inflation across SDR basket currencies determines the increase.

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  Likely caps: 1,400+ SDR baggage, 5,800+ SDR delay (estimates pending actual inflation).

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  Effective late 2029.

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  Pending claims at that date: cap on date of judgment or settlement applies.

Use the delayed flight worth calculator to estimate the delay compensation portion. See airline lost baggage compensation guide for the baggage process. The EU261 passenger rights pillar covers parallel international rights. Start a claim.