American’s Bankruptcy – What You Need to Know

The biggest news in airline land this week (and probably all year) is American Airlines' announcement that it will be going through Chapter 11 bankruptcy. While this process will certainly have dramatic effects on American's long-term future, the good news is that your AAdvantage miles are safe, and you don't need to worry if you have a booking with American.

The Dallas-based airline has set up a website, AA.com/Restructuring, which has some handy FAQs.  Here's one important bit of info for people who already have reservations:

Will the flights I have already booked change as a result of the Chapter 11?

We will continue to operate our regular schedule of flights, and there are no immediate changes to our service or schedules as a result of the Chapter 11 filing. Tickets will be honored, reservations are fully intact and our policies regarding exchanges and refunds remain the same.

And as for the miles:

Are my AAdvantage miles going away?

No. We will maintain our AAdvantage program and ensure that all miles and elite status earned by members remain secure and intact. As usual, your AAdvantage miles do not expire as long as you have qualifying account activity at least once every 18 months. Qualifying account activity is defined as any AAdvantage mileage accrual or AAdvantage award redemption.

So, in short -- yes, American does have its fair bit about financial troubles, but there's no reason to worry about your upcoming reservation for Christmas travel, for example.