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American Airlines Files for Bankruptcy

by on November 29, 2011 · 16 comments

in American

AA just filed for bankruptcy today, which isn’t the most surprising thing since people have been speculating about it since early October when their shares tumbled 40 percent on bankruptcy fears. That being said, I don’t think many people expected it to happen so quickly.

I think the big thing to note is that this does not mean AA is dissolving. It will be business as usual while they figure everything out and likely force big concessions on their unions and probably sell even more miles to Citibank.

As far as miles go, they are fine, but as with all miles – I’d recommend using them sooner than later. The AAdvantage program is likely a profit center so it would most likely be sold off in a worst case scenario, but honestly no one really knows what is going to happen.

Don’t panic, but stay up to date on the news. I’ll be posting again when I hear more details!

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  • Guest

    Just faxed over a request for a whole bunch of mileage credit to AA…now I think they might be in credit limbo for quite a while…should I re-send my request to another airline so the miles aren’t lost?

  • Anonymous

    You should be fine. It’s still business as usual (and under normal circumstances it takes a while to process those requests, so don’t panic)

  • Xiong888999

    I am currently on my way to Executive Platinum after two more segments. Should be worry that all this chasing will be worthless? Also will I still be able to ask for a status match with another airline like United?

  • OperationBingham

    This may help quell some of the panic attacks that any of us invested in American Airlines (frequent flyer wise) might have:

    http://www.greenfieldreporter.com/view/story/7afb120c9575428caf8861a10e8f85e0/US–American-Airlines-Travelers/

  • Benthelefty

    Just in case anyone is wanting to dish off their AAdvantage miles at a low cost, you have an interested buyer (you could book a reward flight or whatever else for me in exchange for $). Let me know :)

  • CorinneL.

    Same fears here. I just started the mileage game and got in on the two browser trick with the Citi AAdvantage Visa & Amex last month. I was already credited the 75,000 bonus points for the Visa and should be credited the 75,000 for the Amex by the close of the next statement. At that point I will have about 170,000 miles in my American account. What airlines can I transfer miles to? I know British Airways is an option, but between the surcharges and the new rewards chart I don’t know if that’s the best option. Any suggestions?

  • Pingback: The American Airlines Bankruptcy and Impact on Your AAdvantage Miles | The Points Guy

  • Anonymous

    You can’t “transfer” your miles to another airline (at least not cheaply), you can only redeem flights on another airline in the oneworld alliance. Who you redeem your miles with depends on where you want to go. If you want to go to South America, look at LAN. If you want to go to Asia look at JAL or Cathay. You have enough miles to do a nice RTW trip if you can take the time off.

  • CorinneL.

    Thanks. Unfortunately, I don’t have the luxury of the time off to take a world tour, but that is my hope for my husband and I in the future. That’s why I started the mileage game recently. I don’t know all the lingo of the flyer blogs yet, but I did mean straight out transfer. I wanted to know if I could switch my miles to another One World Alliance carrier at a 1:1 ratio from my AA to say British Airways. If not, hopefully I can book our flight to Italy in the Spring through AA instead of using our Chase/Continental/United miles and points which don’t expire for us since we hold their cards (as per their new rewards charts and rules United has you use miles once every 18 months. If not you lose them unless you are a cardholder which thankfully I am.)

  • Anonymous

    You can’t do a 1:1 transfer to another airline. You can exchange miles on points.com, but it won’t be 1:1, you’ll probably get a really lousy exchange rate to whatever program you want to move to.

    I wouldn’t worry about it for now.

  • Anonymous

    You can’t do a 1:1 transfer to another airline. You can exchange miles on points.com, but it won’t be 1:1, you’ll probably get a really lousy exchange rate to whatever program you want to move to.

    I wouldn’t worry about it for now.

  • Anonymous

    Agree with ace- dont worry about it and certainly do not liquidate points at points.com

  • http://www.facebook.com/alexkgtu Alexander Onishchenko

    and I’m gonna go and buy more shares of AA – the company will be fine, there are waaay to many reasons it cant just disappear.

  • LSmith

    According to this guy we should start flying Southwest,
    I always thought they were the worst airline?
    http://www.thestreet.com/story/11326203/1/we-as-americans-actually-bankrupted-amr.html

  • Anonymous
  • Jimabed747

    I bought 4000 shares od AMR @ .35/share.did I make a big mistake?