Bag tech saves airlines $18 billion dollars a year — not including fees

We're not talking chump change here: $18 billion. That's how much airlines have saved on processing lost luggage thanks to new bag tech that streamline the entire process.

This figure was part of SITA's Baggage Report 2015, which also found a corresponding drop of 61.3% in mishandled bags since 2007 despite a 33.3% jump in passengers deplaned in that same period.

Airlines now enjoy near-full automation at their baggage processing facilities, with humans present to process exceptions or to fix a jam. At Delta's facility in Atlanta's Hartfield-Jackson, for example, miles of conveyor belts push and bump suitcases onto the proper track to reach the correct destination.

Periodic barcode scanners process the bags to ensure that each is on the correct trajectory, to be pushed down to the carousel by the waiting bag cart, which then takes the bags to the right plane.

And when these systems fail, the consequences are catastrophic. Case in point: a system failure in Miami last month led to American Airlines boarding nearly a full day of flights without any bags whatsoever.

While humans are supposed to intervene in this case through sophisticated monitoring systems, the technology still can cause chaos and financial costs.

Even with the technological breakdown, no word on why none of the baggage handlers mentioned the especially light day of work down on the ramp.

In fact, 15% of all baggage errors are due to a "failure to load," making it the second most common reason for a mishandled bag after the 49% that experience a "transfer mishandling."

Technology, especially technology that's driving a series of mechanical louvers and belts, is bound to experience periodic issues.

Here's the rest of SITA's analysis of the growing deployment of baggage processing technology at airports worldwide.

The majority of airlines are planning an increased investment especially in consumer-facing bag management and tracking technologies, including the ability for travelers to pre-tag their own bags before leaving home.

NB: Lost baggage image courtesy Shutterstock.