Over 42m bags were lost in UK airports in 2007 and passengers are often only awarded compensation of less than a tenth of the value of their possessions, according to consumer watchdog Air Transport Users Council (AUC).

The number of bags lost increased from an estimated 34m in 2006, and since a change in passengers' rights several years ago airlines are liable to pay up to £1,049 in compensation when luggage is lost, damaged or arrives late.

However, in many cases airlines are demanding receipts before they pay for the items that have been lost in customers' baggage or are not paying the full fee by claiming that the bags had already suffered depreciation.

"Complaints to the AUC show that passengers often struggle to get reasonable redress from airlines after the event," said the AUC's chairman, Tina Tietjen.