The European Court of Justice has ruled that pets travelling in a plane's cargo hold may be classified as baggage, limiting airline liability in cases of loss or injury, reports People magazine.

The decision stems from a dispute involving Spanish airline Iberia and an Argentine passenger whose dog Mona went missing before a 2019 flight from Buenos Aires to Barcelona. Mona escaped her crate on the tarmac and was never recovered.

The court found that under the Montreal Convention, pets do not qualify as passengers and fall under the baggage liability regime. This means compensation is capped unless a special declaration of value is made at check-in.

Mona's owner, Grisel Ortiz, had sought EUR5,000 (US$5,400) in damages. However, the court ruled she was entitled to only EUR1,578.82, citing the absence of a special declaration.

Ms Ortiz's lawyer criticised the ruling, saying airlines rarely accept such declarations for pets and that the decision undermines efforts to improve legal protections for animals in transit.

Iberia accepted responsibility but argued for limited compensation. The final ruling will be made by the Spanish court handling the claim, which referred the legal question to the ECJ.

Following Mona's disappearance, Ms Ortiz launched a Facebook group called "We're Looking for Mona" and offered a cash reward, though the dog remains missing.