American Airline’s reorganisation could take two years
Oneworld partner American Airlines has filed for Chapter 11 bankruptcy protection to shield it from its creditors while it restructures its debt.
The airline said it expected to continue normal business operations throughout the reorganisation process.
If it follows the last such case when a major US airline filed for similar protection — Delta Airlines in 2005 — the bankruptcy could last for two years before a reorganisation is completed.
Most other US airlines — with the ironic exception of American Airlines — filed in the wake of the 9-11 terrorist attacks in 2001.
Continental went through bankruptcy twice, in 1983 and in 1990. US Airways has a similar record, in 2002 and 2004.
In a statement issued yesterday, the airline said it needed time to address its cost structure, including its labour costs which are higher than its competitors.
"Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices, and intensifying competitive challenges," it said.
American said it was continuing its normal flight schedule and would honour all tickets and reservations, refunds and exchanges. The airline's frequent flyer programme AAdvantage would not be affected, it said.
"American's customers are always our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us," said chairman, CEO and president Thomas W. Horton.
"American serves 260 airports in more than 50 countries and territories, and we are committed to maintaining a strong presence in worldwide markets. I am confident American will emerge even stronger as a global leader known for excellence and innovation, a travel partner customers seek out, and a carrier that serves communities throughout the world."
The airline's shares dropped following the news and closed 81% down on Tuesday.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
Air Mauritius reduces frequencies to Europe and Asia for the holiday season