FlightAware has sued Kalshi in New York, accusing the prediction market operator of using FlightAware data and branding without permission to settle contracts on flight cancellations. The aviation data company wants damages and a court order stopping the practice.
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Kalshi markets have allowed traders to predict flight cancellation levels at individual airports and across the US. FlightAware says Kalshi identified it as the primary data source, displayed the FlightAware trademark and told users that outcomes would be verified through FlightAware data.
FlightAware says it never approved that use. According to the complaint, existing agreements barred Kalshi from using FlightAware data commercially in connection with gambling or prediction markets. FlightAware sent cease and desist demands after learning about the contracts, but says Kalshi continued listing them.
The case therefore differs from many recent Kalshi lawsuits. State regulators have mainly challenged whether sports event contracts amount to gambling governed by state law. FlightAware instead bases its complaint largely on data rights, contracts and trademarks. New York separately sued Kalshi in July over its sports prediction markets.
FlightAware also raises a safety argument. The company claims markets tied to cancellations could give participants an incentive to interfere with aviation operations or encourage industry workers to take risks to keep flights on schedule.
The lawsuit said: “A market that allows the public to wager on whether flights will be delayed or cancelled creates an incentive for participants to interfere with air travel—including by causing or contributing to flight cancellations—to profit from their wagers. Worse, wagers on flights being timely may incentivize airline, airport, or other aviation workers to cut corners to keep a flight on time.”
Kalshi had added a disclaimer stating that FlightAware did not endorse its prediction markets, according to the complaint. However, FlightAware argues that continued use of its name and data can still create an impression of affiliation.
The aviation company serves more than 13 million passengers and over 10,000 aircraft operators and service providers, giving the dispute a wider data licensing dimension beyond prediction market regulation alone.