American Airlines is adding a twist to holiday travel—and not a positive one. The company, , announced yesterday that it had filed for bankruptcy. Thomas Horton, chairman and CEO of AMR, released a statement detailing how cost disadvantages—including higher labor costs in comparison to other carriers—forced the company to file for Chapter 11. Increased prices in fuel, tough labor negotiations and a decrease in business travel customers may have also contributed to the decision to file.
Despite the need for assistance, AMR was quoted passengers that their tickets and reservations will be honored during this process. In an interview with CNN, Horton claimed that, "all of the people of American Airlines will continue to dedicate themselves to providing great customer service for our customers." Horton also explained that the bankruptcy filing would not have an immediate impact on AMR staffers; however, future meetings will be held with union leaders to come up with a plan to make the company more cost effective.
—Natalie Montalvan, Online Editorial Intern