Will American Airlines Announce Bankruptcy Plan Oct.14th?
If you buy a ticket with a credit card, then you won’t be on the hook if your airline goes under. In fact, when airlines start to find themselves in financial trouble, credit card processors hold back a larger and larger percentage of the money until the flight occurs.
Shares of American Airlines parent AMR lost a big chunk of their value last week after numerous reports that the company was facing a threat of bankruptcy.
Rumors have been swirling all week, but on October 14th, “A big announcement” is coming, AA employees tell me.
Even though the company has $5 billion in the bank – the have not posted any profits this year.
There is no reason to avoid booking with AA. Just use a credit card. (Not debit) Which most of us do anyways.
That way, if the airline doesn’t perform, the credit card company still has your money and can give it right back to you.
