In a landmark decision on Thursday, the European Union’s top court ruled that dogs traveling in an airplane’s cargo hold are legally classified as baggage. This means airlines are not obligated to pay higher compensation if the animal is lost or harmed during transit. The ruling emerged from a legal dispute between Spanish carrier Iberia and a passenger whose dog went missing during a flight from Buenos Aires to Barcelona in October 2019. The dog, which was too large and heavy to travel in the cabin, escaped while being transported to the aircraft and was never recovered. The passenger sought €5,000 ($5,400 USD) in damages, but Iberia argued that compensation should align with the Montreal Convention’s limits for checked baggage, which caps liability at a lower amount. The Spanish court referred the case to the European Union Court of Justice, which sided with the airline. The Luxembourg-based court stated that while the term ‘baggage’ typically refers to objects, it does not exclude pets, provided animal welfare requirements are met during transport. The court also noted that the passenger had not made a ‘special declaration of interest’ at check-in, which could have allowed for higher compensation with the airline’s approval. The judgment is advisory, and the final decision on compensation will be determined by the Spanish court handling the case.