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Re:

Why American Airlines Won $9.4 Million From Skiplagged

American’s $9.4 million judgment against Skiplagged reflects a net award in a copyright and trademark dispute—not a ruling that every hidden-city traveler committed a crime.
From TheFinanceBase Team2 min to read
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American Airlines won a $9.4 million judgment against Skiplagged in a dispute over the travel website’s use of American’s copyrighted material and branding. The verdict did not make every passenger who uses a hidden-city ticket a criminal: it concerned the website’s conduct, and the jury found trademark infringement while also finding nominative fair use.

What is skiplagging?

Skiplagging, also called hidden-city ticketing, means buying a ticket to a destination beyond the city where you actually intend to stop. The itinerary connects through that city; the traveler gets off there and skips the remaining flight. For example, someone traveling to City B might buy a ticket to City C that connects through City B, then leave the airport at the connection.

The tactic takes advantage of differences in airline fares: a ticket to a farther destination may cost less than a ticket to the connection city alone. But the ticket is for the full itinerary, not just the segment the traveler plans to fly. The district-court record also explains a practical complication: checked baggage is routed to the destination listed on the ticket, not the traveler’s intended stop. The district-court opinion describes the mechanics.

Why did American Airlines win $9.4 million?

The U.S. District Court for the Northern District of Texas entered judgment for American on May 6, 2025. The $9.4 million figure was the net result of the court’s calculation: $23.7 million in copyright damages and disgorgement, less $14.3 million that the jury found American had failed to mitigate. The post-trial order sets out the award and reduction.

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The case centered on Skiplagged’s use of American’s copyrighted materials and branding while promoting hidden-city itineraries. The jury found trademark infringement, but also found the use to be nominative fair use. That mixed result matters: the judgment is not a blanket ruling that hidden-city travel by passengers is criminal, nor did American prevail on every claim.

Does American Airlines allow hidden-city ticketing?

No. American’s conditions of carriage identify buying a ticket without intending to fly all flights in order to obtain a lower fare as hidden-city ticketing and prohibit it. That is American’s contract policy; it should not be confused with a general criminal-law finding about travelers.

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What should travelers consider before booking?

A hidden-city itinerary can fail to deliver the expected savings or convenience if the trip does not go as planned. The ticket covers the listed itinerary, a checked bag may continue to the listed endpoint, and the traveler’s plan depends on leaving at a connection rather than completing the booked journey. American’s stated policy also prohibits the practice.

For a more reliable comparison, look at a direct ticket and an ordinary connecting itinerary you intend to fly in full. Compare the total fare, whether you can complete every segment, and where checked baggage will be routed. A lower price on a hidden-city itinerary is not a like-for-like alternative when it depends on skipping a flight.

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What is known about the appeal?

The appeal is listed as Fifth Circuit case 25-10703. The current disposition could not be verified from the accessible indexed docket material. The Fifth Circuit directs users to search case dockets through CM/ECF, which requires PACER access; its opinions index did not establish a case-specific disposition. The Fifth Circuit’s website provides access to its case-information resources.

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