FORT WORTH, Texas — A jury in Fort Worth awarded American Airlines $9.4 million Tuesday in the North Texas-based airline’s suit against Skiplagged, a website that promotes bargain airfares via a hack known as “skiplagging.”
Skiplagging, also known as hidden-city ticketing or throwaway ticketing, is when travelers book a flight with a connection but get off in the layover city and don’t take the remaining flights in the booked itinerary to save money.
Jurors in the court of U.S. District Judge Mark Pittman’s ordered Skiplagged to pay $4.7 million in actual damages for copyright infringement and reportedly another $4.7 million in disgorgement of “ill-gotten” revenues. American Airlines had sought more than $94 million in damages.
“American is pleased the jury recognized that Skiplagged infringed its valuable trademarks and awarded $9.4 million in damages for copyright infringement. This was an important next step in protecting American's intellectual property and valuable brand,” American Airlines said in a statement.
The jury didn't award any damages on the trademark claim.
"Skiplagged is extremely pleased with the jury’s decision on the trademark claim asserted against it by American Airlines, as that is the claim that dominated the evidence submitted at the trial. As to the balance of the verdict on copyright damages, there are additional phases of the trial that need to take place before a final judgment can be entered in the case and Skiplagged is cautiously optimistic as to how those phases will play out," said Bill Kirkman, one of Skiplagged's attorneys.
American Airlines filed a lawsuit against New York-based Skiplagged, an online airfare search engine that promotes the practice, in August of last year.
American’s lawsuit alleged that Skiplagged’s marketing of the practice violates the airlines’ ticketing practices, puts travelers who booked flights through Skiplagged at risk of having their tickets invalidated, infringes on American’s trademarks and fraudulently advertises lower fares than customers end up paying.
Skiplagged has denied American Airlines’ allegations in the lawsuit in court filings. It also accused the airline of “monopolistic and predatory pricing practices,” according to court documents.
Skiplagged has been sued before under similar circumstances, including by Dallas-based Southwest Airlines, Business Insider reported. That case was dismissed and settled out of court, according to Atlanta News First.
United Airlines and travel website Orbitz sued Skiplagged CEO Aktarer Zaman, who started Skiplagged when he was in his 20s, according to Business Insider. Zaman and Orbitz settled and a judge later dismissed United’s case against Skiplagged, according to CNN Money.
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