American Airlines Files for Bankruptcy Protection
The nation’s third largest carrier, American Airlines, filed for bankruptcy protection under Chapter 11 on November 29. Until the filing, American was the last major carrier to avoid bankruptcy and this move was seen by many as expected and necessary because of the competitive disadvantage they have compared to the other carriers that already filed.
Many of American Airlines’ competitors that renegotiated labor contracts and debts in the bankruptcy process have reported strong profit margins in the past few years. But American posted a net loss of $884 million in the nine months that ended Sept. 30, more than double the loss of the prior year’s nine-month period. 
American is currently assuring passengers that the filing would not affect their travel plans, saying all tickets, reservations and reward points would be honored.
My two cents on the filing:
For business and domestic travel, don’t expect much to change because of the filing. However, keep an eye out for destination travel to be sharply discounted in the coming weeks. American will want to keep those seats filled because non-business travelers may be hesitant to book advance reservations.
Also, American will be a better, more efficient and more competitive airline because of this filing. There may be a rough patch ahead while negotiations ensue between American, its creditors and its employees, but greener pastures are ahead.