Why Almost Every Airline Has Sued This One Website | Half as Interesting

The Gist

Airlines routinely sue the website Skiplagged because its hidden city ticketing tool lets travelers bypass airline pricing models and save money. However, major US carriers have repeatedly lost or dropped these lawsuits because the practice of skipping a flight leg is entirely legal.

Quick Overview

Major airlines consistently lose lawsuits against Skiplagged because hidden city ticketing is completely legal and a direct result of airline pricing models created after 1970s deregulation. Skiplagged allows travelers to book non-stop flights with a layover in their actual destination city for a fraction of the cost of a direct ticket. Although airlines claim this practice disrupts operations and violates terms of service, courts have routinely dismissed lawsuits or ruled in favor of the website.

Key Points: Skiplagged is a travel website that facilitates hidden city ticketing, allowing users to buy tickets with layovers in their desired destination cities and skip the final leg. Airlines hate hidden city ticketing because their hub and spoke pricing model means direct flights are typically more expensive than flights with layovers. Lufthansa previously sued a traveler in Germany for hidden city ticketing, but the high court dismissed the case and ruled that the practice does not warrant penalty fees. United Airlines and Orbitz filed a joint lawsuit against Skiplagged in 2014, citing public safety concerns and unfair competition, but the case was ultimately dismissed. American Airlines filed a lawsuit against Skiplagged seeking over 94 million dollars, but a jury awarded American only 4.7 million dollars in actual damages and 4.7 million in disgorged profits over trademark issues, completely rejecting claims that the practice itself is illegal. Skiplagged averages about 10 million monthly users, with roughly 30 percent of those users successfully booking hidden city tickets and saving an average of 180 dollars per trip. Airlines update their terms of service to prohibit hidden city ticketing, threatening passengers with frequent flyer account termination, but getting caught remains exceptionally rare.