# Why Almost Every Airline Has Sued This One Website Source: https://www.youtube.com/watch?v=7Tu8ZIbfLis Recap page: https://rapidrecap.app/video/7Tu8ZIbfLis Generated: 2026-08-05T21:33:34.038+00:00 --- ## 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. ![Screenshot at 01:15: A price comparison on Kayak showing a significantly cheaper ticket to Boston with a layover in Newark compared to a direct flight.](https://ss.rapidrecap.app/screens/7Tu8ZIbfLis/00-01-15.jpg) **Context:** Hidden city ticketing, also known as skipagging, is a travel hack where passengers book a flight with a layover in their intended destination city and walk away before boarding the final leg. Airlines price their tickets based on supply and demand rather than simple distance, making direct flights significantly more expensive than flights with connections, which fuels the popularity of websites like Skiplagged. ## Detailed Analysis Skiplagged has faced numerous legal battles from major airlines seeking to shut down its hidden city ticketing operations. The underlying conflict stems from airline pricing structures, where non-stop flights command higher prices due to demand, while flights with layovers are discounted to fill seats. Although airlines claim hidden city ticketing causes logistical problems and breaches terms of service contracts, courts have repeatedly ruled that the practice is entirely legal. Legal actions by United, Orbitz, and American Airlines have failed to ban the website, with courts dismissing core claims and only awarding damages in specific trademark disputes. As long as airlines price direct flights higher than connecting routes, travelers will continue using hidden city ticketing to save money. ### The Mechanics of Hidden City Ticketing Travelers use hidden city ticketing to exploit pricing gaps between direct flights and flights with layovers. - A flight from Denver to Newark might cost 324 dollars, while a flight from Denver to Boston with a layover in Newark costs only 116 dollars. - Passengers can book the cheaper ticket to Boston and simply leave the airport during the Newark layover, effectively reaching their intended destination for less money. - This practice requires travelers to book one-way tickets and travel exclusively with carry-on luggage because checked bags will automatically be sent to the final ticketed destination. ![Screenshot at 01:25: A breakdown of a 116 dollar one-stop flight from Denver to Boston featuring a layover in Newark.](https://ss.rapidrecap.app/screens/7Tu8ZIbfLis/00-01-25.jpg) ### Why Airlines Hate Skipagging Airlines rely on the hub and spoke model to maximize revenue, making hidden city ticketing a direct threat to their business strategies. - The Airline Deregulation Act of 1978 allowed carriers to set their own routes and fares, leading to the widespread adoption of hub and spoke routing. - Airlines price direct flights higher because they are in higher demand, while connecting flights are discounted to fill empty seats. - Hidden city ticketing disrupts this balance by allowing budget-conscious travelers to purchase discounted connecting seats while leaving empty seats on the final leg. ![Screenshot at 03:12: An animated graphic explaining the hub and spoke airline model used across the United States.](https://ss.rapidrecap.app/screens/7Tu8ZIbfLis/00-03-12.jpg) ### The Legal Battles and Outcomes Airlines have repeatedly taken Skiplagged to court, but their efforts to outlaw the website have largely failed. - Lufthansa sued a passenger in Germany for skipagging, but the German high court ruled that the practice does not warrant penalty fees. - United Airlines and Orbitz filed a joint lawsuit against Skiplagged in 2014, alleging unfair competition and logistical disruptions, but the case was dismissed. - American Airlines sued Skiplagged for over 94 million dollars, resulting in a jury awarding 9.4 million dollars split between actual damages and trademark issues rather than prohibiting hidden city ticketing itself. ![Screenshot at 07:26: A legal news article headline detailing the outcome of American Airlines copyright and trademark lawsuit against Skiplagged.](https://ss.rapidrecap.app/screens/7Tu8ZIbfLis/00-07-26.jpg)