Amid mounting losses, American Airlines filed for Chapter 11 bankruptcy protection this morning but insists it will be “business as usual” while they try to reorganize.  According to the airline, it will still operate its normal schedule and there will be no changes to its frequent flyer program or any other customer programs or services.

American wants to use the bankruptcy process to reduce its costs, including labor costs, which are well above the industry averages.  Delta, United, Continental, and US Airways have all previously gone through bankruptcies, a fact which American says has put them at a competitive disadvantage.

The process is likely to be quite length and we are not anticipating any significant impact for American flyers, at least in the short or medium term.

For more information, there are further details on the American website.