Fort Worth, Texas – American Airlines, headquartered in Fort Worth, has won a substantial legal victory with a $9.4 million jury verdict against Skiplagged Inc., a New York-based company known for promoting “throwaway ticketing” strategies that allow travelers to purchase cheaper flights. The federal court decision came on October 15, marking a significant win for the airline in its battle against practices it argues undermine revenue through unorthodox booking tactics.
Throwaway ticketing refers to the purchase of airline tickets to a final destination with no intention of completing the final leg of the journey. For instance, a traveler might book a cheaper flight from New York to Denver with a layover in Chicago, then disembark during the layover instead of continuing to Denver. American Airlines contends that this practice, which Skiplagged facilitates, has cost it millions in lost revenue.
The courtroom ruling, issued by a jury in the federal court trial, commanded Skiplagged to compensate American Airlines $4.7 million for actual damages linked to copyright infringement and an equal amount for disgorgement of profits derived from these contentious business practices.
American Airlines expressed satisfaction with the outcome, stating that the decision is a critical step forward in safeguarding its intellectual property and branding. The trial, conducted under the oversight of Judge Mark T. Pittman of the U.S. District Court for the Northern District of Texas, did not, however, grant damages regarding alleged trademark infringement, which American had also pursued.
William Kirkman, an attorney representing Skiplagged, noted his approval of the jury’s denial of the trademark claim but mentioned that the copyright damages are not yet set in stone. Kirkman revealed that more phases of the trial are pending, which could potentially alter the verdict’s financial implications.
Skiplagged’s defense has argued that American Airlines, which has earned significant profits from ticket sales made through Skiplagged’s website, had no entitlement to financial recovery. Further, Skiplagged previously accused the airline of engaging in monopolistic behavior and price manipulation.
American Airlines also alleged that Skiplagged’s use of the airline’s logo misled customers into thinking their site was an endorsed booking platform. The major airline maintains strict policies against throwaway ticketing through its official booking partners—including Priceline, Travelocity, Orbitz, and Expedia.
In a related but separate legal matter, American Airlines, post-merger with U.S. Airways, recently secured a nominal $1 in attorney fees in an antitrust lawsuit involving Sabre Corp., the largest electronic travel agent network in the U.S. This long-standing lawsuit accused Sabre of restricting travel agents via exclusive agreements that discouraged the use of cost-effective booking options.
American’s legal battles highlight the complexities airlines face as they navigate proprietary rights, industry regulations, and consumer activities on third-party platforms.
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