American Airlines has filed for Chapter 11 bankruptcy and announced the immediate suspension of all flight operations, affecting both domestic and international routes. The airline cited mounting financial challenges, including rising fuel costs, labor disputes, and lingering impacts from the COVID-19 pandemic.
The bankruptcy filing comes after the airline reported liabilities exceeding $35 billion against assets of roughly $18 billion. Over 6,700 daily flights, including major hubs in Dallas/Fort Worth, Charlotte, Chicago O’Hare, Miami, Philadelphia, and Phoenix, have been grounded. Millions of passengers are impacted, and the U.S. Department of Transportation and Federal Aviation Administration are coordinating with the airline to assist travelers.
American Airlines, one of the largest carriers in the world, said Chapter 11 protection will allow it to restructure its debts and operations while seeking to emerge financially stronger. The airline urged affected passengers to check official channels for updates on refunds and rescheduled flights.
