FlightAware withdraws lawsuit against Kalshi over flight-cancellation markets

Flight-tracking company FlightAware has withdrawn its lawsuit against prediction markets platform Kalshi, which it had accused of using its data and name without authorization to host markets on flight cancellations. The lawsuit was filed on Monday and dismissed by Tuesday, with lawyers for FlightAware stating the case was "voluntarily dismissed, without prejudice, against all defendants."

Neither company immediately responded to requests for further comment. The U.S. flight cancellation contract for the week ending August 14 remained available on Kalshi's website, though it no longer explicitly named FlightAware as the source. A disclaimer on the page now reads "outcome verified from Primary Source Agency," with a link to FlightAware's website, a change from its earlier wording which directly referenced "Flight Aware."

Kalshi's disclaimer also notes that its markets are not endorsed by the "Primary Source Agency" or its affiliates, and any references to their delay and cancellation pages or associated marks are descriptive and do not indicate an endorsement or affiliation. FlightAware had sought unspecified damages and court orders to prevent Kalshi from using its data.

The withdrawal comes amid social media backlash over concerns that malicious actors could disrupt flights to collect payouts, and data indicating modest retail participation in Kalshi's aviation niche contracts. For the U.S. flight cancellation bet open until Aug. 14, only 31,412 contracts had been traded, representing $1,842.48 in aggregate dollar volume, with 1,120 contracts in open interest. This low liquidity contrasts sharply with Kalshi's $148 billion in volume this year.