American Airlines filed for Chapter 11 bankruptcy in November 2011 before merging with US Airways.
American’s parent company, AMR Corporation, entered bankruptcy protection on November 29, 2011. The company cited high labor costs, fuel prices, and a cost structure that made it less competitive than other major U.S. airlines.
American reorganized its contracts, fleet plans, and finances during bankruptcy. In 2013, AMR merged with US Airways Group, and the combined airline continued using the American Airlines name. The merger helped create one of the world’s largest airlines.
This case is distinct from United Airlines’ 2002 bankruptcy and Delta’s 2005 bankruptcy. American did not enter bankruptcy because it had stopped flying; it continued operating scheduled services while protected from creditors under Chapter 11.