Airline baggage handling improved last year with the rate of mishandled bags dropping 1.78% despite a 4.5% rise in passenger numbers to 2.95 billion, according to SITA.
In 2012, 8.83 bags per thousand passengers were mishandled, down from 8.99 in 2011.
One area the industry is focusing on is improving baggage transfers between flights, the main cause of delays. SITA, which provides airlines with baggage tracing solutions, said there was an improvement in this area with transfer bags, as a proportion of all mishandled bags, down 9% from 2011.
It said this was a result of airlines and airports investing in processes and systems to improve both baggage handling efficiency and the speed with which bags travel through the airport.
SITA CEO Francesco Violante said: "The industry has made a concerted effort to improve baggage handling operations in recent years through significant investment and innovation.
"Over the past six years, the rate of mishandled bags per thousand passengers has fallen 53.2%, saving the industry US$2.1 billion in 2012 compared to 2007.
"While there is still work to be done because any mishandled bag is unwelcome, the six-year trend shows that our collaborative efforts to improve baggage handling are paying off to the benefit of both passengers and airlines."
In 2012, passengers reported 26.04 million mishandled bags. Delayed bags accounted for 82.9%, a further 12.9% were damaged or pilfered and 4.2% were lost or stolen
