Core Insights - The global baggage mishandling rate is projected to decrease from 6.9 to 6.3 per 1,000 passengers in 2024, driven by infrastructure upgrades and IT innovations, particularly automation [3][5] - Real-time tracking technology, such as SITA WorldTracer®, has significantly improved baggage recovery efficiency, with 66% of mishandled bags returned to passengers within 48 hours [3][5] - The global airline industry is under pressure to enhance baggage handling services as passenger expectations rise, necessitating a shift towards more automated and data-driven systems [7][10] Industry Performance - In 2024, the total number of mishandled bags is expected to reach 33.4 million, resulting in financial losses of approximately $5 billion for airlines [7] - The baggage mishandling rate has improved by 8.7% year-on-year, and has decreased by 67% since 2007 [5] - The most common type of mishandling is delays, accounting for 74% of cases, down from 80% the previous year [5] Regional Insights - The Asia-Pacific region boasts the lowest baggage mishandling rate at 3.1 per 1,000 passengers, while North America improved to 5.5, and Europe reduced its rate from 15.7 to 12.3 [5][6] - SITA has collaborated with several major Chinese airlines since the 1980s to enhance efficiency and reduce mishandling rates in international flights [6] Future Projections - By 2027, it is anticipated that 92% of airlines will utilize real-time tracking in operations, with 82% offering this service to passengers [8] - SITA aims to achieve a seamless, data-driven baggage journey in the Chinese market by enhancing real-time tracking capabilities [6][8] Challenges and Solutions - The industry faces challenges such as infrastructure disparities, particularly in developing countries, which hinder the implementation of real-time tracking systems [10] - SITA emphasizes the need for standardized data sharing and interoperability among airlines, airports, and ground service providers to improve baggage handling efficiency [10] - The company is focusing on scalable, cost-effective software solutions like WorldTracer® to facilitate real-time tracking without extensive hardware upgrades [9][10]

Core Insights - The global air passenger numbers reached a record high of 5.3 billion in 2024, leading to an increase in baggage handling volume [1] - The baggage mishandling rate decreased from 6.9 per 1,000 passengers in the previous year to 6.3 in 2024, marking a 67% reduction since 2007, despite an 8.2% increase in passenger volume [1] - The total number of mishandled bags slightly decreased to 33.4 million, indicating the growing impact of technology and automation in the industry [1] Baggage Handling Improvements - Over 66% of the 33.4 million mishandled bags were recovered within 48 hours using the SITA WorldTracer® system, with 25% resolved within 12 hours [1] - The aviation industry incurs approximately $5 billion in costs due to mishandled baggage, highlighting the need for real-time, automated, and data-driven baggage systems [1] Technological Advancements - SITA's CEO emphasized that transformation in the aviation industry is a constant process driven by technological advancements and rising passenger expectations [2] - In 2024, 42% of passengers received real-time baggage updates, an increase from 38% in 2023, with nearly half of travelers expressing that mobile tracking enhances their confidence in checked baggage [2] - 66% of airlines currently offer automated baggage check-in services, with an additional 16% planning to implement it by 2027 [2] Innovations in Baggage Tracking - The integration of Apple's "Share Item Location" feature with SITA WorldTracer® allows travelers to share the location of their Apple AirTags, expediting the recovery of lost luggage [3] - Delayed baggage remains the most common issue, accounting for 74% of mishandled bags, down from 80% the previous year [3] - The primary cause of mishandling is still transfer mishaps, which account for 41%, a decrease from 46% the previous year [3] Future Developments - The aviation industry is set to adopt a new standard for modern baggage messaging (MBM) by 2025, which aims to further reduce the mishandling rate by 5% [4] - Leading airports, such as Saudi Arabia's Red Sea International Airport, are beginning to implement next-generation baggage solutions, including off-airport check-in and real-time tracking [4] Company Overview - SITA is a leading provider of IT business solutions and communication services for the global air transport industry, offering a range of solutions for airlines, airports, aircraft, and governments [5]