Montreal Convention Liability Limits: 2024 Revisions and Implications

As liability limits under the Montreal Convention rise this December, airlines must brace for greater financial exposure and revisit their existing contracts and coverage.

The Montreal Convention of 1999 (the “Convention”), which governs international air travel liability, is incorporated into Canadian law through the Carriage by Air Act, R.S.C. 1985, c. C-26. The Convention limits liability for carriers in claims for passenger injury or death, baggage loss, and delays. These limits are reviewed every five years by the International Civil Aviation Organization (“ICAO”) and adjusted for inflation, pursuant to Article 24. 

ICAO has now published the adjusted limits, which will come into effect on December 28, 2024, and supersede the current 2019 figures. The new limits reflect an approximately 18% increase from the previous figures. 140 State Parties, including Canada, have been notified of the change and have been asked to amend their domestic laws to give effect to the revised limits.

The new limits of liability under the Convention, effective December 28, 2024, are the following:

• Death or Injury (Article 21): $282,497 CAD (151,880 SDRs) from $239,464 CAD (128,821 SDRs).
• Baggage Claims (Article 22.1): $11,722 CAD (6,303 SDRs) from $9,939 CAD (5,346 SDRs).
• Cargo Claims (Article 22.2): $2,825 CAD (1,519 SDRs) from $2,395 CAD (1,288 SDRs).
• Delay Compensation (Article 22.3): $48 CAD (26 SDRs) from $41 CAD (22 SDRs)​​

Legal Implications for Airlines

Claims are governed by the time of carriage, and therefore the new limits will apply to all losses that occur from December 28, 2024, onwards.

Carriers should reassess their liability coverage to ensure that it is sufficient to cover anticipated claims due to the increased financial exposure for airlines occasioned by the higher limits. 

The new limits will override any conflicting terms in contractual documents, such as Conditions of Contract and/or Conditions of Carriage, and therefore carriers may wish to amend these contracts and review any standard contractual terms or waybills that reflect the current liability limits (for example, Article 8 of the IATA Standard Ground Handling Agreement with respect to baggage or cargo).