American Airlines suing website that offers tickets via price loopholes

The American Airlines logo on a building in Miami, Florida.
(Image credit: Roberto Machado Noa / LightRocket via Getty Images)

American Airlines is suing a travel website that offers cheaper airfares by using a loophole in the airline pricing system.

American sued Skiplagged Inc. in federal court on Friday. The lawsuit accuses the company of using a "classic bait and switch" practice to offer American customers cheaper tickets. The airline alleges that Skiplagged has never been authorized to sell its tickets and has threatened to cancel tickets purchased through the website.

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While this practice is not illegal, airlines have been cracking down on passengers who participate, claiming it violates their policies. Earlier this month, American banned a 17-year-old from flying with them for three years because he had purchased a hidden-city ticket. Skiplagged even admits on its website that hidden-city flying "might upset the airline, so don't do this often," adding that passengers shouldn't "associate a frequent flyer account — if you do, the airline might invalidate any miles you've accrued with them." The website also urges passengers not to skiplag on the same itinerary multiple times.

American cited these tips in its lawsuit, writing that hidden-city flying "is expressly prohibited. Because Skiplagged knows this, it even expressly advises customers on what steps to take to avoid getting caught." The airline also told The Dallas Morning News that the practice "can lead to operational issues with checked bags and prevent other customers from booking a seat."

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Justin Klawans, The Week US

Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other news. Justin has also freelanced for outlets including Collider and United Press International.