SITA Baggage Report 2016 has revealed that luggage mishandling dropped to its lowest ever rates in 2015.
Last year, the rate of baggage mishandling was 6.5 bags every thousand passengers, a reduction of 10.5% from 2014 and less than half the number from 2003.
Rates have improved despite an 85% rise in passenger traffic since 2003, with over 3.5 billion passengers travelling through airports last year.
Increasing passenger numbers are expected to exert pressure on the aviation industry's resources, infrastructure and baggage handling systems.
In June 2018, airlines will implement IATA Resolution 753, which ensures bags are tracked throughout journeys.
SITA CEO Francesco Violante said: "Over the next three years bag tracking will be in the spotlight as airlines ready themselves to implement IATA's Resolution 753.
"This increase in visibility will provide more control and drive further improvements in bag handling.
"It also means that passengers will be able track their bag, just like a parcel, which will reduce anxiety and allow them to take fast action if flights are disrupted and their bags are delayed."
According to the report revealed by SITA, baggage handling has also improved in the area of self-service bag services.
Around 40% of airports and airlines provide self-bag-tag printing services at self-service kiosks.
More than 75% are expected to have adopted the services by 2018.
Violante added: "The baggage statistics for 2015 are very encouraging, however in total, mishandled bags still cost the industry $2.3bn last year.
"While this is a 3.75% reduction from 2014 it is clear that this must remain an area of focus for the industry."
For more than 20 years, SITA has provided its baggage management solutions to more than 200 airports and 500 airlines worldwide.
Image: The rate of baggage mishandling in 2015 was 6.5 bags every thousand passengers. Photo: courtesy of SITA.