American Airlines parent AMR corporation filed for Chapter 11 bankruptcy on Tuesday. This filing leaves Jet Blue and Southwest Airlines as the only two major U.S. airlines that have not filed for bankruptcy reorganization.
American Airlines has not had a profitable quarter since 2007. It is estimated that the airline has lost nearly $5 billion since then and the losses are expected to continue through at least 2012.
It was also announced on Tuesday that current CEO Gerard Arpey is retiring and will be replaced by Thomas Horton.
For passengers, it will be business as usual. In an email sent out to travelers on Tuesday, American told its customers that they will honor tickets already issued as well as continue to sell tickets and issue refunds. Customers will still be able to use their frequent flier miles.
For more information on how the bankruptcy could impact your travel, go here.
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