American Airlines files for bankruptcy, but analysts say it’s business as usual

American Airlines has filed for bankruptcy. Parent company AMR Corp filed for chapter 11 bankruptcy reorganization this week, but analysts are already saying that it should be business for usual for the company and its passengers.

The filing doesn’t mean that American Airlines is going out of business, or necessarily even that any flights will be cancelled. The airline is seeking to reorganize its finances and should emerge from bankruptcy fairly quickly once this has been acheived.

American Airlines is believed to be seeking to improve its cost and debt structure primarily by dealing with its labour costs. The company, which is far from the first major US airlines to go into bankruptcy protection in recent years, is believed to be the only major airlines that still funds its workers’ pension costs.


About Sarah Bosdiccia

Sarah Bosdiccia is a writer, journalist, blogger and editorial assistant. In the past, she has worked in the local newspaper business and has taught journalism modules at undergraduate level. She doesn't 'do' Facebook but you can follow her at @sarah_bosdiccia.


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