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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!
- For a limited time, earn 50,000 American Airlines AAdvantage® bonus miles after making $3,000 in purchases within the first 3 months of account opening*
- First checked bag is free on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation*
- Enjoy Group 1 Boarding on American Airlines flights*
- No Foreign Transaction Fees on purchases.1
- Receive 25% savings on in-flight food and beverage purchases when you use your card on American Airlines flights*
- Double AAdvantage® miles on eligible American Airlines purchases*
- Earn 10% of your redeemed AAdvantage® miles back — up to 10,000 AAdvantage® miles each calendar year*