American Airlines files for bankruptcy

For the 240,000 passengers who fly American Airlines each day, the airline's bankruptcy filing should have little noticeable impact.

AMR Corp., the airline's parent company, said that it will continue normal flight operations as it heads to federal court to restructure. The move is aimed at reducing AMR's hefty costs, including for labor.

Delta, United, Continental and US Airways have all gone through Chapter 11. Travelers continued to book tickets. Planes still took off and landed and frequent flier miles were still earned and redeemed.

The only risk to passengers is that if the restructuring fails, the airline ultimately liquidates and ceases to fly. Still, many travelers are protected in that case if they bought tickets with a credit card.

American was the only major U.S. airline that didn't file for bankruptcy protection after the 2001 terrorist attacks. They say labor-contract rules force it to spend at least $600 million more than other airlines.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Time Warner® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 5 view limit
Access to News 12 is free for Optimum, Comcast®, Time Warner® and Service ElectricSM customers.
Please login, create an account or subscribe to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."