The US airline has struggled for some time with union negotiations, complaining it faces higher labour costs than rival domestic and foreign carriers that have already restructured in bankruptcy.
American Airlines and parent AMR Corp have filed for Chapter 11 bankruptcy protection in the United States citing high labour costs and a volatile economy in which high fuel prices have slashed travel demand.
The airline, which replaced its chief executive as part of the move, has struggled for some time with union negotiations, complaining that it faces higher labour costs than rival US domestic and foreign carriers that have already restructured in bankruptcy.
American Airlines, once the largest U.S. carrier, is now third behind United Airlines and Delta Air Lines, both of which used Chapter 11 to cut costs and later found merger partners.
The carrier, the largest airline at Los Angeles International Airport, said it and regional affiliate American Eagle would keep operating as usual and that all tickets, reservations and reward points would be honored.
"The world changed around us," American Airlines’ incoming chief executive told reporters on a conference call according to Reuters.
"It became increasingly clear that the cost gap between us and our competitors was untenable," he said.
AMR Corp was the last major network carrier in the U.S. to succumb to bankruptcy in the tumultuous decade since the September 11, 2001, terrorist attacks.
Many of its competitors that managed to renegotiate labour contracts and debts in their Chapter 11 bankruptcy processes have since reported strong profit margins.But AMR posted a net loss of $US884 million in the nine months to September 30, more than double the loss of the prior year's nine-month period.
