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AP Photo/Tony Gutierrez, File
# Bankruptcy
American Airlines files for bankruptcy
The fourth largest airline in the world lost $868 million (€650 million) during the first nine months of this year.
THE PARENT COMPANY of American Airlines, the fourth largest airline in the world, is filing for bankruptcy.
The airline lost $868 million (€650 million) during the first nine months of this year – and was reportedly the only major US airline to lose money last year.
The parent company is seeking Chapter 11 bankruptcy protection as it seeks to unload massive debt built up by years of increasing prices of jet fuel and a number of industrial action disputes. The CEO of the company will also step down.
The airline was the last major US airline which hadn’t filed for bankruptcy protection.
AMR, the airline’s parent company, said in a statement that it sought protection to reduce its costs and debt to remain competitive.
The airline will honour all tickets and reservations and continue normal flight operations during the bankruptcy filling.
Analysts had speculated about a bankruptcy filling as shares in the company sank and it struggled to make money while its rivals reported profits. Most recently, the company’s inability to reach a contract with its pilots fueled talk about a possible filing.
- Additional reporting by Associated Press
