The Airlines' Bag Reflex

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But some bags are never found. Julie Roberts, a consultant from New Jersey, landed without her checked bags after a flight to San Francisco on JetBlue Airways (JBLU). About a week later, she was informed by the airline that it did not expect to find her luggage. Along with her bags and other things, Julie lost a cherished bracelet her husband had given her on their wedding day, and crucial—and expensive—allergy medication for which her insurance won't cover a new prescription. Of course, in addition to the expense of trying to locate her bags, the airline is liable for up to $3,000 for having lost them.

An Unexpected Solution

The vast majority of mishandled bags is eventually returned to their owners, and only 0.08% are lost for good, according to SITA. But the belongings of those few unlucky travelers often wind up in the Unclaimed Baggage Center in Scottsboro, Ala., a clearing house that pays airports for baggage that cannot be returned to the owner. "We're a side note to what happens," said Brenda Cantrell, the store's spokeswoman, explaining that airlines typically search bags for five days for clues to the owner's identity, then stow them in a warehouse for several months until her store carts them away. She compares sifting through the store's treasures to shopping at a thrift store or a yard sale. Except, she adds, "these were things people wanted with them, not something they discarded."

Adding insult to injury, in some people's eyes at least, United Airlines (UAUA) announced in June that it would initiate a policy of charging passengers between $10 and $30 to check bags—a move soon imitated by virtually every major U.S. carrier. Ironically, the fees may actually spare airlines and passengers from having to sing the lost luggage blues quite so frequently. If passengers check fewer bags, the odds of an airline losing some goes down. Moreover, the need for airlines to invest in expensive tracking technology becomes much less urgent. "They have so many competing priorities for a budget," said Catherine Mayer, vice-president of airport services for SITA. "I don't know where baggage sits."

Apparently, all too often, neither do the airlines.

Click here to see what happens to your bags when you check them in at the airport. It's amazing that more bags aren't lost.

Levy is a BusinessWeek reporting intern.