Layover loophole? American Airlines travel hack trial begins Monday in Fort Worth

Next week in federal court in Fort Worth, American Airlines plans to challenge a popular fare hack known as “skiplagging,” which is favored by some passengers but not by airlines.

In August of 2023, American filed suit against New York-based Skiplagged Inc., a leading online promoter of the practice, also known as “hidden city ticketing.” Under some conditions, travelers can save money by booking a flight to an ostensible destination with a layover in their true desired destination; then, instead of boarding the connecting flight, they exit the airport — a strategy that only works for passengers traveling without checked luggage.

American’s civil lawsuit, to be tried before a jury beginning Monday in the court of U.S. District Judge Mark T. Pittman, contends that Skiplagged Inc.’ marketing of the practice violates the airline’s ticketing policies, puts buyers who book flights through Skiplagged at risk of having their tickets invalidated, infringes on American’s trademarks and, because of hidden fees, fraudulently promises customers lower fares than they end up paying.

“It is the classic bait and switch: draw consumers in with the promise of secret fares, and instead sell the consumer a ticket at a higher price,” the airline’s complaint alleges.

American is seeking at least $94.4 million in damages. Dee J. Kelly Jr. of Fort Worth, the lead attorney in the suit for American Airlines, and William L. Kirkman of Fort Worth, lead attorney for Skiplagged, declined to comment on the case.

In court filings, Skiplagged generally denied the allegations raised in American’s suit. It accused the airline of “monopolistic and predatory pricing practices” and claimed the use of American’s trademarks on Skiplagged’s site was not “trademark infringement under the doctrine of nominative fair use” and was simply intended “to identify AA’s flights and to differentiate such flights from those of other carriers.”

Skiplagged has been sued before under similar circumstances. United Airlines and the online travel agency Orbitz accused Aktarer Zaman, who started Skiplagged around 2014 when he was in his early 20s, of touting “prohibited forms of travel.” Zaman started a GoFundMe to pay his legal costs. He settled with Orbitz, and the United lawsuit was dismissed.

The Texas Lawbook is an online news publication focused on business law in Texas. For more on this and other legal news, visit texaslawbook.net.

AT A GLANCE

What is skiplagging? It is a travel booking method in which a passenger purchases a ticket with a layover but intentionally skips the final leg in order to save money.

How it works: When booking a flight, a traveler chooses one to a destination with a layover in their real intended city. They would then exit the airport at the layover stop with their carry-on bag and skip the final leg of the trip.

Potential savings: Skiplagging may provide a tempting alternative to direct flights to the same destination, potentially luring travelers to try to save money on airfare in certain situations.

Possible risks: Airlines consider skiplagging a violation of their terms of service and may penalize travelers by canceling frequent flyer accounts or denying service. This could even lead to travelers being banned from flying with the airline.

The Texas Lawbook is an online news publication focused on business law in Texas. For more on this and other legal news, visit texaslawbook.net.