On January 29, 2007, the U.S. Department of Transportation issued a Final Rule increasing the minimum limit of an airline’s liability for baggage lost, damaged or delayed during domestic travel from $2,800 to $3,000 per passenger. The change takes effect on February 28. Thus, for domestic travel beginning that date, “an air carrier shall not limit its liability for provable direct or consequential damages resulting from the disappearance of, damage to, or delay in delivery of a passenger’s personal property, including baggage, in its custody to an amount less than $3,000 for each passenger.” See 14 CFR sec. 254.4.
Federal regulations require that DOT periodically revise the baggage liability limit to reflect changes in the Consumer Price Index.