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American Airlines Inc. has accused airfare search engine Skiplagged Inc. of causing $18 million in damages by falsely posing as an authorized agent of the airline. In a Texas trial that began Monday, Skiplagged countered that American’s lawsuit is an attempt to stifle consumer choice rather than protect its trademarks.

Skiplagged Defends Its Business Practices

Skiplagged, known for revealing hidden-city ticketing deals, argued that customers deserve transparency in pricing options, even if airlines dislike those pricing practices. "Skiplagged is doing things that all the airlines don't condone," said Aaron Tobin, representing the search engine, during the trial’s opening arguments. He further asserted that the company never claimed to be an official agent of American Airlines, and using the airline’s logo does not amount to trademark infringement.

American Airlines, based in Fort Worth, Texas, filed the lawsuit in August 2022, alleging that Skiplagged misled customers by pretending to sell tickets as an authorized agent, breaching the airline's terms of service. According to American, Skiplagged encouraged customers to use "skiplagging" practices, where passengers book layovers but don’t complete the second leg of the trip, leaving seats empty and costing the airline revenue.

Arguments Over Trademark Infringement and Confusion

Tobin compared the case to a baseball game, suggesting American Airlines had cleared only the first base of proving Skiplagged's use of its marks, but was unlikely to succeed in proving the full extent of damages or confusion among customers. “We don’t think that American is going to make it to second base,” Tobin said, emphasizing the statute of limitations had passed for some of American’s claims.

Conversely, Paul Yetter, representing American Airlines, argued that the airline lost revenue and customers faced confusion because of Skiplagged's actions. He maintained that Skiplagged used American’s branding for its own profit, and did so deliberately.

Skiplagged Cost American Airlines $18M : Legal Rulings and Case Background

U.S. District Judge Mark Pittman previously ruled in July that American Airlines had waited too long to bring certain contract claims, knowing about Skiplagged’s operations since 2016. However, the judge allowed American’s copyright claim regarding Skiplagged's unauthorized use of the airline’s flight symbol, which was still in use as recently as 2023. Judge Pittman also denied summary judgment for both sides on trademark infringement and unfair competition claims, leaving those issues for the jury to decide.

With American Airlines' claim for false designation of origin dismissed last week, the trial now centers on trademark infringement, damages, and customer confusion caused by Skiplagged's business model.