Fewer mishandled bags and bumped passengers were reported in 2011 when compared to the year before, according to the Department of Transportation's Air Travel Consumer Report by the Office of Aviation Enforcement and Proceedings.

News reports tied the drop in lost baggage to the fact that people checked fewer bags overall last year because of the surge in fees associated with checked bags. According to our own survey findings, the proliferation of fees has been a major source of aggravation to airline passengers.

The drop in bumped passengers was the result of new DOT rules, according to news analysis, which raised the monetary penalty for bumping passengers. Starting this past summer, DOT rules required that passengers bumped from oversold flights must be compensated double the price of the purchased ticket (up to $650), unless an airline gets them to their destination within a few hours.

Also according to the DOT's latest report, flight delays and cancellations for U.S. airlines increased only slightly last year when compared to 2010. The Wall Street Journal reported that overall, last year airlines also benefited from relatively good weather and less congestion due to cuts in scheduled flights because of the weak economy and high oil prices.

For more from our survey, check out Best & worst airlines, for which almost 15,000 readers told us about their experiences on 29,720 domestic round-trip flights (ratings available to subscribers). According to our results, Southwest was tops and US Airways trailed. Southwest was tops and US Airways trailed.

And for tips on finding great airfares check out our video:

Air Travel Consumer Reports for 2012 [DOT]
Lost Bags, Bumped Passengers Down in 2011, But Complaints About Airlines Up, DOT Says [Wall Street Journal]