Tech drove down mishandled bag rates by 23% in 2025, but mishandling still costs the industry $6.3 billion a year

The aviation industry achieved a 23% reduction in baggage mishandling rates in 2025 through digital transformation, bringing rates below pre-pandemic levels. However, mishandled baggage still costs the industry $6.3 billion annually, with each bag averaging $260 in costs. Real-time data sharing, AI routing, and biometric bag drop technologies are driving improvements, though transfers remain the primary mishandling driver at 39% of cases.