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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!