SDR to USD: What the Montreal Convention Liability Cap Means in Real Money

Montreal Convention SDR USD compensation confuses passengers because the underlying Montreal Convention 1999 (MC99) denominates liability caps in Special Drawing Rights (SDR), not US dollars. SDR is an IMF reserve asset made up of a basket of five major currencies (USD, EUR, JPY, GBP, CNY). The IMF publishes the SDR-to-USD rate daily. The conversion rate that applies to your claim is the rate on the date of judgment or settlement, not the date of the disruption.

As of late April 2026, 1 SDR equals approximately USD 1.33. That converts the 1,288 SDR baggage cap to approximately USD 1,713. The rate fluctuates daily; check imf.org/external/np/fin/data/rms_sdrv.aspx for the current rate.

The 2024 ICAO five-year inflation review increased Montreal Convention caps. The current caps applicable to disruptions occurring in 2026:

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  Baggage liability (Article 17): 1,288 SDR per passenger, approximately USD 1,710 in April 2026. Covers loss, delay, or damage of checked baggage. Excess valuation declarations override this cap.

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  Delay damages (Article 19): 5,346 SDR per passenger, approximately USD 7,103 in April 2026. Covers documented economic loss from a delayed international flight (separate from EU261 cash compensation).

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  Death and bodily injury (Article 21): 128,821 SDR per passenger, approximately USD 171,140 in April 2026. Strict liability up to this amount; carrier negligence required above.

For the broader baggage framework, see Montreal Convention liability cap explained and Montreal Convention claim deadlines.

When the original Warsaw Convention (1929) and later Montreal Convention (1999) negotiations took place, drafters faced a problem: liability caps fixed in any single currency would erode with inflation. SDR is a basket of five major currencies, which dampens individual currency volatility. Equally important, ICAO conducts a five-year inflation review under MC99 Article 24 and adjusts the SDR caps to maintain real value. The 2009, 2019, and 2024 reviews all increased the caps.

The five-year ICAO review is automatic. The next adjustment is scheduled for 2029. The caps will likely increase again, reflecting cumulative 2024-2029 inflation across the SDR basket currencies.

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  Date of judgment or settlement: courts and arbitrators apply the SDR-to-USD rate on the date the award is calculated, not the date of the disruption. This is settled in US case law (see Tseng v El Al, 525 U.S. 155 (1999), and follow-on baggage cases).

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  Date of voluntary settlement: when an airline settles a baggage claim before judgment, parties typically agree on the rate as of the settlement date.

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  Currency hedging: a long-running case can see SDR fluctuate 5-10% over 6-18 months. Settlements typically reflect this risk implicitly.

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  EUR-denominated airlines: some EU carriers settle baggage claims in EUR using their internal SDR-to-EUR conversion. The economic value should still align with the IMF SDR rate.

1. 1

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

2. 2

   Document actual economic loss with receipts. Airlines settle on documented loss up to the SDR cap, not on the cap itself.

3. 3

   Multiply the relevant SDR cap by the current IMF rate to get USD equivalent. Use imf.org/external/np/fin/data/rms_sdrv.aspx for the rate on the day of filing.

4. 4

   Submit the claim with USD documentation but cite the SDR cap explicitly in the demand. Airlines work in SDR internally and will recognize the citation.

5. 5

   If settlement disputes the conversion, request the IMF's published rate on the settlement date as the reference.

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  Excess valuation declaration: declared value at check-in (typically with a fee) overrides the 1,288 SDR baggage cap up to the declared amount. Documented baggage worth more than USD 1,710 should always be valuation-declared.

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  Wilful misconduct (Article 22.5): the cap does not apply when carrier acts with intent to cause damage or recklessly with knowledge that damage would probably result. Rare in baggage cases; more relevant for cargo or significant injury.

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  Documented loss exceeding cap: a passenger with USD 5,000 of stolen baggage contents recovers up to USD 1,710 unless valuation was declared. The remaining USD 3,290 is unrecoverable from the airline (consider travel insurance).

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  Domestic carriage: Montreal Convention applies only to international carriage. Pure domestic legs in the US, EU, or other jurisdictions are governed by national rules.

1. 1

   Report at the destination airport: file a Property Irregularity Report (PIR) with the carrier within 7 days of the bag's arrival (delay) or within 21 days of confirmed loss.

2. 2

   Document loss: photos of damaged items, receipts for replacements purchased during delay, original receipts for lost items.

3. 3

   Submit a written claim citing Montreal Convention Article 17 (baggage). Include passport, ticket details, PIR, and itemized loss with receipts.

4. 4

   Use SDR cap as the upper bound. Airlines settle in USD or local currency at the IMF rate.

5. 5

   Escalate to small claims court within 2 years of arrival if denied. Montreal Convention Article 35 sets the 2-year limitation period.

Montreal Convention claims are strict-liability up to the cap, so the math is more predictable than EU261. Use the delayed flight worth calculator for the related delay framework, and see airline lost baggage compensation guide for the full baggage process. The EU261 passenger rights pillar covers the parallel European framework on flight delays. Start a claim.