US domestic baggage liability (14 CFR part 254) and DOT bag-fee refunds

Who is covered

Passengers on domestic US air transportation, on flight segments using large aircraft or on the same ticket as such a segment. International itineraries are governed by the Montreal Convention instead, which has a different ceiling and much harder deadlines.

What you get

Provable direct and consequential damages — the real cost of what was lost, damaged or delayed — with the carrier unable to limit below $4,700 per passenger. Plus a refund of the checked-bag fee if the bag was lost or delayed beyond 12 hours domestically.

Where claims go wrong

• The $4,700 is a floor on the airline's liability, not a ceiling on your loss. Airlines present it as a cap.
• The figure was $3,800 until 22 January 2025 and is re-adjusted every two years under § 254.6.
• Depreciation schedules have no basis in part 254, which speaks of provable damages.
• The bag-fee refund under 14 CFR 260.5 is a separate entitlement and requires a Mishandled Baggage Report. Airlines rarely volunteer it.
• There is no federal deadline, but your carrier's contract of carriage imposes one — commonly 24 hours for damage and 45 days to file.
• The limitation period is state contract law, not the two-year Montreal period, which does not apply to domestic carriage.