> On flights within the U.S., airlines are responsible for lost-luggage reimbursement up to $2,500 per person; on international flights, airlines owe you a mere $9.07 per pound, with a ceiling of $640. (That rate was set by an international treaty in 1929.)

> Beyond that, airlines owe you nothing for your most valuable items. Most contracts of carriage specifically exempt from compensation things like antiques, art, books, documents, money, cameras, collectibles, electronics, or "fragile or perishable items." [1]

Also this is not a guaranteed payout, you may need to provide receipts for your things [2]. In general I would prefer to keep the contents of my bag vs receiving "up to" $2,500. We're mostly working people here. The time and money cost of travel disruptions, replacing stuff, navigating bureaucracy etc. is not low. And my stuff has emotional value.

I agree that this setup seems reasonable in a perfect world. But knowing how large, complex companies function, I feel it is unwise to create any kind of loop which rewards airlines as a function of luggage lost.

[1] https://www.frommers.com/tips/airfare/the-bottom-line-what-d...

[2] https://www.peopleclerk.com/post/airline-lost-delayed-luggag...