Icelandair Lost Baggage: How to Claim Compensation for Damaged & Delayed Bags

Joanna Teljeur

By:  Joanna Teljeur

Last Updated:  February 23, 2026

If you had a flight with Icelandair and the airline lost your baggage, you’re not alone. Despite the ever-improving technology for baggage handling, passengers still have to contend with lost luggage when they fly. If this is you, then read on because we’re going to give you a step-by-step explanation of what you have to do and when to get compensation from Icelandair.

The Montreal Convention October 2024 changes approved the baggage compensation limit rise from €1,600 to nearly €1,920. Handle your baggage loss, damage or delay case knowing your rights!

Key Points

1. If your baggage is mishandled, then Icelandair is required to compensate you up to approximately  €1920 for lost baggage.
2. The Montreal Convention is the treaty that governs air passenger rights for delayed, damaged, or lost baggage.
3. You can be compensated for any expenses you have to make as a result of your baggage being lost.

Start your claim today!

What Are Your Air Passenger Rights

Your passenger rights are governed and protected by the Montreal Convention, an international treaty signed in 1999 requiring airlines to compensate passengers for baggage mishandling up to 1,519 Special Drawing Rights (SDRs). An SDR is a combined value of several different currencies which currently equals approximately €1,920. 

Icelandair Lost Baggage: What to Do 

When your luggage doesn’t arrive on the delivery carousel, it can be upsetting to say the least. While passengers would consider their baggage lost, airlines don’t consider baggage as lost until it has been delayed for 21 days. 

So, as soon as you realise your bags are missing, find the Icelandair Baggage Counter, which can usually be found in the reclaim area in the airport. Once you locate the desk, tell the representative about your lost baggage and ask to complete a Property Irregularity Report (PIR). This is a document that registers the problem with the airline and gives them information and time to solve the issue. It’s very important that you report your missing bags and keep a copy of the PIR as well as the number associated with it.

After you complete the Property Irregularity Report, use the number to trace your lost baggage. While most lost baggage is found within 24 hours, sometimes it can take longer. 

Buying essentials when your baggage is lost

Icelandair understands that you have to buy clothing, toiletries, and other necessities because your baggage is missing, especially if this happens while you’re away from home. So you can buy the items you need, just keep track of your receipts. Also, remember to only buy essentials.

Claiming Compensation for Icelandair Lost Baggage

If your baggage has been returned to you, then you can file a claim for essential purchases as soon as you get your baggage. But if your baggage hasn’t been found after 21 days of your report, then you should initiate your lost baggage claim. 

The following table shows you how long you have to submit your claim to the airline. Failure to comply with these time frames could result in your claim being denied.

Once you’ve submitted your claim on the Icelandair lost baggage page, you only have to wait for the airline to make their final decision about your claim. Be patient because this can sometimes take a month or longer.

Icelandair Damaged Baggage Reports and Claims

If your checked baggage is damaged when you retrieve it, then go immediately to the Icelandair Baggage Counter and make a report as we described for lost baggage. It’s especially important to do this as soon as possible and ideally, before you leave the airport.

Once again, you will be asked to complete a Property Irregularity Report. Remember to keep a copy. Also, it’s a good idea to take photos of the damage because this will come in handy when you file your compensation claim. 

If you’ve already left the airport, or if the damage was only discovered later on, then you have 7 days to make the report at the airport or on Icelandair’s website.

Next, you must file your damaged baggage compensation claim with Icelandair within 7 days of receiving your baggage. Once again, you can do this on the airline’s site. Before you begin, you might want to collect all the necessary information including the PIR, booking receipts, photos of the damage, and other pertinent information.

It’s important to understand however, that Icelandair will not cover the damage caused by improper packing, poorly made luggage, or normal signs of wear and tear. Likewise, they won’t usually compensate you for fragile items that were broken or small rips and tears or scuffs to the baggage itself.

Icelandair Lost Baggage Compensation: How Much You Will Recieve

The rules of the Montreal Convention say that Icelandair has a liability limit of up to roughly €1,920 for baggage mishandling issues. So, whether you’re claiming for essentials that you had to buy or lost, damaged, or delayed baggage, the most you can expect to receive is €1,920.

You’ve waited days for your luggage to arriveDon’t let Icelandair get away with it.
Start your claim today

You might also like:

• Rights of European Air Passengers
• Compensation for Flight Delays
• Lost and Delayed Baggage Compensation in the EU

Author:

Joanna Teljeur

Job/Position: Senior Editor & Content Lead

Joanna Teljeur is a senior editor and writer with 15+ years of experience in editorial leadership, journalism, and content development, specialising in consumer rights, aviation law, and public-interest reporting. Her work focuses on transforming complex regulatory and legal topics into clear, accurate, and accessible content for international audiences.

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