American Airlines is operating as usual even though its parent company, AMR Corp., filed for bankruptcy today. There will be no immediate changes to its flight schedule or service, according to a statement from the airline.
AMR says it filed for Chapter 11 reorganization to reduce costs and debt so it can be more competitive. Throughout the bankruptcy process, it plans to honor tickets and make refunds as usual. The airline also will maintain its AAdvantage frequent-flyer program and says members won't lose any miles that they have earned.
In fact, American Airlines might "attempt to lure reluctant consumers by offering bonus frequent flyer miles and perhaps a fare sale," wrote Airfarewatchdog.com founder George Hobica on his blog. Anne Banas, executive editor of SmarterTravel.com, agrees that the airline might offer bonus miles to keep its loyal customers happy.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
AMR is one of the last of the major airline companies to file for bankruptcy (Southwest has not filed for bankruptcy). UAL Corp., the parent of United Airlines, emerged from a three-year bankruptcy in 2006. Delta Air Lines filed for bankruptcy in 2005 and emerged in 2007 after a 19½-month reorganization.
Banas says that it was business as usual for both of these airlines during their bankruptcies. So American Airlines passengers should feel confident that the airline will continue to operate without disruptions. However, she does recommend that anyone who has booked travel on American sign up for alerts from the airline so they can be informed if there are any changes to their flights.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
Best Places to Visit Where the Dollar Is StrongFrom the Americas and Europe to Africa and Asia, we list the 10 best places to travel to where the U.S. dollar is the strongest.
-
24 Best Travel Websites and Apps to Find Deals and Save You MoneyTravel Use Kiplinger's guide to the best travel websites and find discounts and deals so you can vacation without breaking the bank.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
Frequent Flyer Tax Could Raise Billions for ClimateCould taxing frequent flyers help combat global pollution? Some climate scientists say yes.
-
How to Make The Most of a Travel Insurance ClaimMore travelers are buying insurance. If your trip is canceled, take these steps to increase your chances of recovery.
-
Despite Cancelled Flights and Short-Staffed Hotels, Americans Are (Sort of) Traveling AgainBusiness Travel Thanks to high gas prices, cancelled flights and labor shortages across the sector, the post-COVID travel recovery looks uneven.
