American Airlines’ lawsuit against Skiplagged, an airfare search engine company offering cheap flights, is set to begin on October 7, 2024, according to a report by The Dallas Morning News. The Fort Worth-based carrier aims to challenge the widely used fare hack known as “skiplagging.”

Skiplagging or “hidden city ticketing” is the controversial practice of booking a trip where the layover is the actual and intended destination of the traveler. For instance, if you’re flying from New York (JFK) to Dallas (DFW), it might cost less to book a ticket from New York to Las Vegas (LAS) with a layover in Dallas and then simply not continue to Las Vegas.

Skiplagging is believed to result in cheaper airfares for passengers. However, airlines generally oppose this practice because it leads to revenue losses and can increase the chances of overbookings.

The lawsuit details

In 2023, American Airlines
filed a lawsuit against Skiplagged, claiming that the promotion of skiplagging violates the airline’s ticketing rules. The airline argues that this practice risks invalidating customers’ tickets, infringes on its trademarks, and misleads buyers with hidden fees, ultimately offering fares that are higher than initially promised. The Fort Worth-based carrier is seeking $94.4 million in damages, according to the report.

American Airlines Boeing 737-800 (N337PJ) blasting out of Los Angeles International Airport.

Photo: Minh K Tran | Shutterstock

It is worth noting that skiplagging is not a criminal offense but can lead to lawsuits as airlines are working to address the issue and target companies that offer these tickets. In a comment to CNN, American Airlines said that “the practice of hidden city ticketing is prohibited by American’s Conditions of Carriage and agency agreements.”

“If a customer knowingly or unknowingly purchases a ticket and doesn’t fly all of the segments in their itinerary, it can lead to operational issues with checked bags and prevent other customers from booking a seat when they may have an urgent need to travel. Intentionally creating an empty seat that could have been used by another customer or team member is an all-around bad outcome.”

American Airlines is not the first carrier to file a lawsuit against Skiplagged. In 2015, a Chicago judge dismissed a lawsuit filed by United Airlines
against Aktarer Zaman, the company’s founder and CEO. The Northern District Court of Illinois judge ruled that the court lacked jurisdiction over the case because Zaman neither resided nor conducted business in Chicago.

In 2021, Southwest Airlines
also filed a lawsuit against the company, stating that it had no right to display Southwest ticket prices.

Why is skiplagging cheaper?

Flights with connections are generally cheaper than direct ones. By skipping the final leg of the trip, a seat remains empty that the airline could have otherwise sold at a higher price to a passenger seeking a nonstop flight.

Southwest Airlines Boeing 737 NG and 737 MAX at Dallas Love FIeld DAL shutterstock_2428818329

Photo: Markus Mainka | Shutterstock

Skiplagging may also cause slight delays because the airline knows a passenger was on the first leg of the trip and might call their name during the final boarding call of the connecting flight.

Notably, hub-and-spoke airlines, which operate from one central hub to various destinations, are the most affected by this issue. Point-to-point airlines are not impacted by skiplaggers as they generally offer nonstop journeys.

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