FlightAware Files Lawsuit Against Kalshi, Alleging Unauthorized Use Of Data For Flight-Cancellation Markets
Flight-tracking company FlightAware has filed a lawsuit against prediction-markets operator Kalshi, alleging the platform improperly leveraged its proprietary information and brand to support wagering on flight cancellations.
The complaint, submitted August 10, 2026, in the US District Court for the Southern District of New York (case 1:26-cv-06824), names Kalshi Inc. along with several affiliated entities. FlightAware accuses Kalshi of using its flight data and trademarks without authorization to operate what the filing describes as gambling markets tied to cancellation rates.
According to the suit, Kalshi in mid-July 2026 submitted a self-certification to the Commodity Futures Trading Commission (CFTC) that designated FlightAware as the primary source agency for determining outcomes on contracts involving the share of scheduled flights canceled at specific airports during set periods. Kalshi’s market pages reportedly displayed references indicating results were verified from FlightAware, creating an impression of partnership or endorsement that FlightAware says never existed.
FlightAware maintains that Kalshi previously agreed not to use its data for commercial activities, including gambling or prediction markets.
After learning of the markets, the company canceled Kalshi’s access to its AeroAPI service and issued cease-and-desist notices. The complaint states that Kalshi continued offering the contracts and invoking the FlightAware name.
The lawsuit asserts claims of breach of contract, trademark infringement under the Lanham Act, and unfair competition.
Public reaction to the cancellation markets included criticism that such products could create perverse incentives for individuals to interfere with air travel or airport operations in order to influence outcomes and profit from wagers.
FlightAware is seeking unspecified monetary damages, an accounting of profits derived from the disputed use of its marks, and injunctive relief.
Specifically, it requests a temporary restraining order along with preliminary and permanent injunctions that would prohibit Kalshi from further employing FlightAware data or trademarks in connection with these or similar markets. A jury trial has been demanded.
The introduction of flight-cancellation contracts followed earlier offerings that also referenced FlightAware information, according to the complaint.
As of the filing date, FlightAware asserted that Kalshi had not fully ceased the challenged practices.
The dispute highlights ongoing tensions around the boundaries of prediction markets, the use of third-party data for settlement, and the reputational consequences when data providers become associated with high-stakes wagering products without their consent.
