08:25 AM EDT, 07/18/2025 (MT Newswires) -- (Updates with airline's comment.)

American Airlines ( AAL ) said it has dropped its federal lawsuit against the city of Chicago over the reassignment of a gate space at O'Hare International Airport and refiled it in Illinois state court on Wednesday.

The airline had sued the Chicago Department of Aviation in federal court for allegedly violating a 2018 agreement by prematurely reallocating gate space, a move that favored its competitor United Airlines (UAL). American Airlines ( AAL ) is now pursuing the same claims in state court and is again seeking a preliminary injunction.

"American continues to vigorously pursue its rights in accordance with the 2018 lease agreement to ensure the airline will sustain a competitive presence at O'Hare Airport well into the future," a company spokesperson said in an email to MT Newswires Thursday.

American Airlines ( AAL ) also added United Airlines as a putative defendant and dropped the commissioner of the Aviation Department as a party, according to the court filing.

United Airlines did not immediately reply to a request for comment from MT Newswires.