What is the American Airlines skiplagging lawsuit?

American Airlines accuses the company Skiplagged of illegally selling its tickets to customers and using “unauthorized and deceptive ticketing practices” in the process. The lawsuit comes just a few weeks after American Airlines made national headlines when it caught a teen apparently planning to use the tactic.



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That may be canceling the rest of your trip or voiding any associated electronic travel certificate or credit you have; permanently banning you from the airline; refusing to board you until you've paid the difference they determine; deleting your miles and taking away any elite status you may have; charging you a “ ...

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Skiplagged is the most well-known service for finding hidden-city or throwaway tickets. That's the practice of booking a less-expensive flight option without planning to fly the entire itinerary. Instead, you bail at a connecting airport rather than continuing to your final destination.

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In its lawsuit, the airline alleges that Skiplagged deceives its customers by implying it has the authority to issue a valid airline ticket. “It cannot. Every 'ticket' issued by Skiplagged is at risk of being invalidated.”

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On Thursday, Aug. 17, 2023, American Airlines filed suit against Skiplagged Inc., a travel website that sells tickets that let people save money by exploiting a quirk in airline pricing, accusing the website of deception. It threatened to cancel every ticket that Skiplagged has sold.

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While skiplagging can save travelers money, unless they're experienced — and bold — it may not be worth the trouble, according to Keyes. Downsides include: You can't check a bag. The airline can reroute your flight through a different city.

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Travelers get bumped from flights because airlines sell more tickets than they have seats on the plane. That's called overbooking, and it sounds like a scam, but there's no law against it.

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Skiplagging is not illegal. But most major airlines, including American, Delta Southwest and United, don't allow it. For one thing, airlines lose money on the practice, says Tim Huh, a professor at the University of British Columbia's Sauder School of Business, who co-authored a study on skiplagging last year.

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The good news is that hidden city ticketing isn't illegal. The bad news is that you can get in trouble with airlines for hidden city ticketing, as it does violate the contract of carriage you agree to when booking a ticket.

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In most states, you must file your complaint or claim in the jurisdiction where the defendant has a business location. An airline generally can be sued in a small claims court in any jurisdiction where it operates flights or has an office.

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While not illegal, intentionally skipping segments on an itinerary does almost always violates airlines' contracts of carriage. For example, American's contract of carriage says this: Reservations made to exploit or circumvent fare and ticket rules are prohibited.

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But skiplagging is controversial, and many airlines frown upon it — so much that it can be punishable by miles or status cancellations and even a lifetime ban from the airline.

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If an airline catches you skiplagging, in most scenarios it will punish you as per the terms and conditions of the ticket you're flying on. The punishments could range from financial penalties to restrictions on future booked travel.

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“The practice, while discouraged by airlines and barred in their contract of carriage, is rarely against the law,” Russell explains. You do need to make sure that you have the correct visas and entry requirements for the country you intend to visit, however, just like you would with a direct flight.

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While you're not going to be sent to jail for hidden city ticketing, airlines can try to punish you — if they discover what you're doing they could force you to buy a new ticket, could ban you from their frequent flyer program, could ban you from flying with the airline, etc.

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Skiplagged is the most well-known service for finding hidden-city or throwaway tickets. That's the practice of booking a less-expensive flight option without planning to fly the entire itinerary. Instead, you bail at a connecting airport rather than continuing to your final destination.

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If you want to fly for free ... First, consider where you'll travel and on what airlines. Next, sign up for loyalty programs, then look at credit card welcome bonuses and other ways to earn miles. Even if you don't make a lot of credit card charges, you can slowly work toward low-cost or nearly free airline tickets.

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To do this, he advises checking in online or via an app, instead of going to a kiosk at the airport. Then, unless it is something urgent, it's better to 'avoid speaking to airline staff' for the entirety of the journey.

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A dummy air ticket is nothing more than a round-trip flight reservation from and back to the original departure country. A dummy ticket is not a paid return ticket. Basically, it is only a document that included travel itinerary details, but it's not a confirmed ticket.

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Skiplagged founder Aktarer Zaman identified a problem -- the seeming arbitrary nature of airfares -- and attacked it. Now United and Orbitz may eat him for lunch. Aktarer Zaman, the 22-year-old Skiplagged founder who got sued by Orbitz and United, has a B.S.

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Frontier Airlines bumped the biggest proportion of passengers of the 15 largest US carriers in early 2023. Of every 10,000 Frontier passengers, 3.73 were involuntarily denied boarding due to oversales, the DOT said. Allegiant, Delta, Endeavor, and Hawaiian didn't bump any passengers in the quarter, per the DOT.

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Sometimes, when an airline asks for volunteers to give up their seats and fly on a different flight, there are not enough volunteers. When this occurs, the airline will select passengers to give up their seats. This is called “involuntary denied boarding” or “bumping.”

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There's an inherent priority to being (involuntarily) bumped, usually something like this, from LEAST to MOST likely:
  • full fare passengers.
  • elite pax with status / partner status.
  • discount fare passengers booked with airline.
  • discount fare passengers booked with an OTA.
  • bulk/wholesale fares.
  • non-revenue pax.


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