Liability has always been an inescapable feature of commercial aviation. But in an era defined by geopolitical volatility, regulatory fragmentation, and rapidly evolving technology, the nature and scale of airline liability losses are changing in fundamental ways. As operators confront both traditional risks and a widening array of non-traditional exposures, the challenge is no longer simply about insuring against loss, but about managing complexity across jurisdictions, stakeholders, and reputational fronts.
These issues will be at the centre of discussion at the International Air Transport Association’s (IATA) World Legal Symposium (WLS) 2026, to be held from 17–19 February in Warsaw, Poland, hosted by LOT Polish Airlines, under the theme “Liability in a Changing World.” The event comes at a moment when internationally agreed liability principles are under increasing strain.
Pressure on a Global Liability Framework
Aviation liability has long rested on a foundation of international treaties designed to provide predictability, uniformity, and legal certainty for airlines and passengers alike. That framework is now facing growing pressure from divergent national measures, particularly in areas such as consumer protection, sanctions, trade tariffs, and data regulation.
“Internationally agreed airline liability principles are facing growing pressure from divergent national measures, which risk undermining the uniform application of the international liability treaties and their benefits to connectivity,” said Leslie MacIntosh, IATA’s Corporate Secretary and Acting General Counsel. “The challenges this creates for airlines, who must navigate through these inconsistencies to support global operations, will be at the heart of discussions at this year’s WLS.”
For airlines, this divergence translates directly into heightened legal exposure. Liability losses today are rarely confined to a single jurisdiction. Even a single incident can trigger parallel claims, regulatory investigations, and enforcement actions across multiple countries, often including claimant-friendly jurisdictions such as the United States.
Beyond the “Classic” Aviation Loss
While catastrophic accidents remain the most visible liability events, they are no longer the only, or even the dominant, source of legal risk. Airlines continue to face traditional insured exposures such as passenger injury or fatality, third-party property damage, baggage and cargo claims, and hull losses. But layered onto these are a host of contemporary compliance-driven risks.
Environmental, social and governance (ESG) obligations, allegations of greenwashing, evolving taxation regimes, data privacy requirements, and the deployment of artificial intelligence in operational and customer-facing systems all present new vectors of liability. These exposures are amplified by changing societal expectations and heightened regulatory scrutiny.
As Michał Fijoł, President and CEO of LOT Polish Airlines, noted: “New regulations, emerging technologies, and evolving societal expectations create strategic challenges in airline operations today. Bringing together leading aviation law experts, regulators, and industry representatives is essential to jointly identify and address the complexities ahead.”
Serious Incidents and Reputational Risk
Not all liability losses arise from major accidents. Airlines routinely deal with serious incidents that fall short of a total loss but nevertheless pose significant legal and reputational challenges. These include runway excursions, emergency landings or evacuations, near misses, ground collisions, onboard disturbances, toxic exposure events, and individual fatalities or serious injuries.
Incidents involving high-profile passengers or allegations of discrimination can quickly escalate, drawing intense media attention and regulatory interest. In such cases, liability management is inseparable from reputation management. Open communication, swift coordination among stakeholders, and careful handling of investigations are essential to mitigating long-term damage.
Crisis Preparedness as a Legal Imperative
For a customer-sensitive industry, a major loss or serious incident can represent an existential threat. Preparation is therefore not optional. Airlines are increasingly expected to demonstrate robust crisis-management systems, including compliant Emergency Response Manuals, alignment with local regulations such as the US Air Carrier Family Assistance Act, and participation in realistic crisis simulation exercises.
The adage “plan for the worst, but hope for the best” remains apt. Prevention is always preferable to cure, but when incidents occur, the speed and competence of the response often determine the ultimate legal and commercial outcome.
Attritional Losses: The Constant Drain
Alongside headline-grabbing events, airlines face a steady stream of attritional liability losses: passenger injury and delay claims, baggage and cargo damage, and third-party property losses. Individually modest, these claims can collectively represent a significant financial and operational burden.
Effective handling requires specialist expertise, cost discipline, and access to a global network capable of responding consistently across regions. Increasingly, claims data and trend analysis are being used not only to defend individual cases but to inform broader risk management and operational improvements.
Recoveries and Third-Party Liability
Aviation liability is not solely defensive. There are frequent opportunities for recovery actions against third parties whose conduct has caused or contributed to loss. These may include aircraft and equipment manufacturers, avionics suppliers, airports, air traffic control authorities, maintenance and repair organisations, ground handling agents, and other airport service providers.
Claims arising from defective design, negligent maintenance, ATC instructional errors, wildlife incursions, or ground handling failures underscore the interconnected nature of aviation risk. Establishing jurisdiction and coordinating multi-party actions across borders requires both technical aviation knowledge and legal sophistication.
General Aviation: A Distinct but Growing Risk Profile
Liability exposure is not confined to commercial airlines. The general aviation sector, encompassing drones, helicopters, business jets, microlights, gliders, and regional operators, presents its own complexities. Losses may involve hull damage, personal injury, fatalities, and subrogation claims, often intersecting with regulatory and investigative authorities.
Specialist expertise, including technical qualifications and pilot experience, is increasingly valuable in navigating these cases and achieving outcomes that balance insurer and operator interests.
A Changing World, A Higher Bar
As the aviation industry adapts to a changing world, liability risk is becoming broader, deeper, and more interconnected. Legal exposure now extends well beyond the aftermath of accidents into the realms of compliance, technology, geopolitics, and public perception.
The discussions at WLS 2026 will reflect this reality. For airlines and air operators, the message is clear: liability management is no longer a back-office function. It is a strategic capability, one that will increasingly shape resilience, competitiveness, and trust in global aviation.
