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In a concerning development for the airline industry, the rate of mishandled baggage has nearly doubled, reaching 7.6 bags per thousand passengers in 2022, according to the latest SITA report titled “2023 Baggage IT Insights.” The surge in mishandling incidents can be attributed to a combination of factors, including a shortage of skilled staff, the resumption of international travel, and airport congestion during peak periods. As a result, airlines and airports are now compelled to prioritize digitalization and automation to enhance baggage management.

The report highlights that delayed bags constituted a staggering 80% of all mishandled bags in 2022, lost and stolen bags accounted for 7%, and damaged and pilfered bags comprised 13% of the total. This substantial increase in mishandling rates marks a significant reversal from the positive trend observed over the past decade, where process improvements resulted in a 59.7% reduction in mishandling incidents between 2007 and 2021. However, the ongoing staffing challenges caused by the aftermath of the COVID-19 pandemic have contributed to a 75% surge in mishandling rates since 2021.

Historically, transfer bags have been the primary source of mishandled baggage, and this trend continued in 2022, with a one-percentage-point rise compared to the previous year, leading to 42% of bags being delayed during transfers. The resurgence of international and long-haul travel played a significant role in this increase, introducing loading errors and higher transfer mishandling rates. Meanwhile, failing to load bags accounted for 18% of all mishandled bags in 2022, representing a 3% decrease from the preceding year. Notably, loading errors more than doubled in 2022, contributing to 9% of all delayed bags, owing to operational strains on baggage systems.

David Lavorel, CEO of SITA, expressed concern over the escalating mishandling rates and emphasized the need for the industry to restore passengers’ confidence in checking in their bags. SITA is actively collaborating with airlines and airports to address the key pain points in the baggage journey through smart automation, tracking, and digital platforms. Lavorel stated, “We at SITA are working directly with airlines and airports to help solve key pain points in the baggage journey through smart automation, tracking, and digital platforms.”

To tackle the rising issue, airlines are investing in real-time baggage status information, with 57% already providing their staff mobile access to such data. This figure is expected to rise substantially to 84% by 2025. Furthermore, 67% of airlines plan to offer real-time baggage status information directly to passengers, marking a significant improvement compared to the current 25%.

SITA has developed the WorldTracer Auto Reflight system to respond directly to the high mishandling rates observed during transfers. This innovative solution automatically identifies bags unlikely to make their intended connecting flight and rebooks them on the next available flight using the existing bag tag while keeping passengers informed throughout the process. The automation of reflight operations using this system has the potential to save the industry up to $30 million annually. A recent partnership between Lufthansa and SITA has already yielded promising results during a Proof of Concept at Munich Airport, demonstrating that they can automatically reflight approximately 70% of mishandled bags belonging to Lufthansa passengers.

As the air transport industry grapples with the surge in baggage mishandling rates, adopting digitalization and automation emerges as crucial strategy to ensure efficient and reliable baggage handling. By investing in technology that provides real-time baggage status information and implementing innovative solutions like the WorldTracer Auto Reflight system, airlines can mitigate the challenges posed by increased passenger volumes and staff shortages, ultimately delivering an improved travel experience for passengers.