American Airlines and its parent company AMR Corp filed for bankruptcy Tuesday after failing to win a labor deal with pilots and suffering from mounting fuel costs.
AMR had been the only major U.S. carrier to avoid bankruptcy in the past decade. Its rivals used bankruptcy to restructure their labor agreements and cut costs.
That left AMR, the third-largest U.S. airline behind United Continental Holdings Inc and Delta Air Lines Inc , with the highest labor costs in the industry and the only major airline still funding worker pensions.
"It completes the cycle," said Helane Becker, an analyst with Dahlman Rose & Co. "Every major airline in the united...