CanadaCan the airline limit its liability for lost or damaged baggage on international flights?
Yes, airlines can limit their liability for lost or damaged baggage on international flights under the Montreal Convention, which Canada has adopted into law. The limit is 1,288 Special Drawing Rights (SDR) per passenger for checked baggage.
What the Law Says
Canada applies the Montreal Convention through the Carriage by Air Act, which gives the international treaty the force of law in Canada. The Convention sets strict liability limits and prohibits carriers from contracting out of those limits.
The Montreal Convention (formally the Convention for the Unification of Certain Rules for International Carriage by Air, signed in Montreal on May 28, 1999) governs liability for international air travel involving Canada. It replaced the older Warsaw Convention system and was implemented in Canada via the Carriage by Air Act.
Under the Convention, airlines are strictly liable for damage to checked baggage occurring during international carriage — meaning passengers do not need to prove negligence. However, liability is capped unless the passenger declares a higher value at check-in and pays an additional fee.
The Convention also prohibits airlines from excluding or limiting their liability below the prescribed amounts — any attempt to waive these protections is void.
Statutory TextThe carrier is liable for damage sustained in case of destruction or loss of, or damage to, checked baggage upon condition only that the event which caused the damage occurred on board the aircraft or during any of the operations of embarking or disembarking.
— Montreal Convention, Art. 17(2)
Statutory TextThe carrier's liability in respect of checked baggage is limited to 1,288 Special Drawing Rights per passenger.
— Montreal Convention, Art. 22(2)
Statutory TextAny provision tending to relieve the carrier of liability... or to fix a lower limit than that which is specified... shall be null and void.
— Montreal Convention, Art. 26
What Courts Have Said
The Supreme Court of Canada confirmed the binding, non-waivable nature of Montreal Convention liability limits and affirmed that domestic legislation cannot override this international framework.
The SCC held that the Montreal Convention establishes a complete, self-contained liability regime for international air carriage. Airlines cannot avoid or reduce their obligations under it — including baggage liability caps — through contract terms or waivers. The Court emphasized that the Convention balances airline operational needs with passenger protection, and Canadian law must give full effect to its provisions.
What to Do
File a written complaint with the airline within 7 days for damaged baggage or 21 days for lost baggage (per Montreal Convention Art. 31).
Keep all baggage tags, boarding passes, and receipts for replacement items.
If your claim is denied or underpaid, you may sue in a Canadian court with jurisdiction — but only within 2 years from arrival, or date flight should have arrived (Montreal Convention Art. 35).
Do not sign any release or waiver offered by the airline without reviewing it — such waivers are void under the Convention.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.