American Airlines parents files for bankruptcy

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

The company also replaced its CEO, and the incoming leader said American would probably cut its flight schedule "modestly" while it reorganizes. He did not give specifics. American said its frequent-flier program would be unaffected.

AMR Corp., which owns American, was one of the last major U.S. airline companies that had avoided bankruptcy. Competitors used bankruptcy to shed costly labor contracts, unburden themselves of debt, and start making money again. Delta was the last major airline to file for bankruptcy protection, in 2005.

American, the nation's third-largest airline, was stuck with higher costs and had to match its competitors' lower fares or lose passengers.

American Airlines is typically in the top five in passenger counts at McCarran International Airport.

For 10 months through October, American carried 2.1 million arriving and departing passengers through McCarran, up 8.8 percent from the same period last year.