FORT WORTH, Tex. – American Airlines, along with their parent company AMR, has filed for Chapter 11 bankruptcy, the company announced on Tuesday.
Officials from the airline say that the filing was voluntary, and in the best interest of the company and its shareholders.
In a statement on the company website, the airline says that they will continue their normal business operations throughout the reorganization process, which they say is necessary to establish a competitive cost and debt structure.
The action has no direct legal impact on any American Airlines operations outside the United States, the airline said in the statement.
“I am confident American will emerge even stronger as a global leader known for excellence and innovation, a travel partner customers seek out, and a carrier that serves communities throughout the world,” said American CEO Thomas W. Horton in the statement.
The airline says that they currently have around $4.1 billion in cash available to pay for operating costs during the bankruptcy process.