GlossaryEN1 min readUpdated: Jun 19, 2026

Montreal liability cap

When air cargo is lost or damaged in international transit, the Montreal liability cap sets the maximum amount an air carrier must pay in compensation.

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Last updated: 19 June 2026Published: 27 January 2026

Source: https://www.iata.org/en/policy/air-transport-insurance/montreal-convention/

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Definition & Explanation

When air cargo is lost or damaged in international transit, the Montreal liability cap sets the maximum amount an air carrier must pay in compensation. Established by the Montreal Convention, the cap is calculated on the basis of gross weight per shipment and expressed in Special Drawing Rights (SDR) as defined by the International Monetary Fund, with the figure subject to periodic revision. Shippers whose goods exceed this threshold in value can declare a higher value in writing at the time of booking; the carrier is then liable up to the declared amount, though an additional surcharge typically applies. Without such a declaration, compensation is strictly limited to the weight-based ceiling regardless of the actual market value of the goods. This cap applies specifically to cargo and should not be confused with the separate—and differently calculated—liability limits for passenger injury or baggage claims.

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Montreal liability cap

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