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American Airlines files for bankruptcy protection

30 November 2011

The parent company of American Airlines filed for bankruptcy protection Tuesday, seeking relief from crushing debt caused by high fuel prices and expensive labor contracts that its competitors shed years ago.

American’s parent company, AMR, has incurred $12 billion in losses since 2001, and analysts say it is on track to lose $1.1 billion more this year.

With industry profits of less than 1 percent forecast for 2012, American had little hope of a significant rebound in the coming months.

source: Washington Post