Aviation analyst Sean Mendez has said that fraudulent and inflated passenger claims are placing growing pressure on how airlines process compensation for delayed and lost baggage, leading to stricter verification procedures across the system.
Speaking to The High Street Journal, he noted that while airlines are required under international aviation rules to compensate passengers for verified losses, the process is often complicated by inconsistencies between what passengers declare and what is actually found in their baggage.
He explained that global compensation limits are defined under the Montreal Convention, which caps airline liability for delayed or lost baggage at approximately US$2,000, depending on currency conversion using Special Drawing Rights (SDRs).
According to him, this ceiling is designed to cover reasonable and verifiable losses, not exaggerated or speculative claims that exceed the actual contents of baggage.
“In some cases, at least half of the claims were fraudulent, people would exaggerate or misrepresent what was in their baggage,” he said.
Mendez cited cases where passengers reportedly claimed high-value or excessive items that did not match what was later recovered, creating challenges for verification teams responsible for assessing compensation requests.
He said this has led airlines to adopt stricter reimbursement procedures, with greater emphasis on receipts, documentation, and validation before payments are approved.
The analyst explained that while airlines are obliged to support passengers during genuine disruptions, they must also protect against abuse of the system, which can increase operational costs and slow down claims processing.
He added that most airlines now apply tighter checks where compensation requests appear excessive or lack supporting evidence, particularly given the capped liability framework under international rules.
Mendez stressed that most passengers do not engage in fraudulent behaviour, but even a small number of inflated claims can influence how verification systems are designed and enforced.
He further noted that most baggage delays are resolved within 48 to 72 hours, meaning compensation frameworks are intended for short-term disruption rather than large-scale financial recovery.
He added that clearer passenger understanding of what is legitimately covered under the US$2,000 limit would help reduce disputes and ensure smoother processing of genuine claims, while maintaining fairness in airline compensation systems.
