The holiday season is usually a time to spend, spend, spend, but American Airlines’ parent company, AMR Corporation, has filed for bankruptcy to reduce labor costs and shed billions of dollars in debt. According to the New York Times, AMR is the last of the major legacy US airline companies to file Chapter 11.
For the past 3 years in a row AMR has posted losses, including a $471 million loss last year. Major airline companies cut their costs as a way to compete with low-cost carriers like Southwest Airlines.
So what does American Airlines’ bankruptcy mean for travelers? Well, company officials say it’s business as usual, and the airline will operate normally throughout the bankruptcy process. And you can rest easy if you’re enrolled in one of American’s frequent flyer programs. Plans to restructure the company are not expected to affect the number of travel miles you’ve clocked.
I have to admit I was a little worried at first, especially after I doing a little fare surfing last night for a cheap airplane ticket to Miami. Today, I received an email telling me not to be alarmed about my membership to the AAdvantage frequent flyer program. Part of the email states: READ MORE