American Airlines CEO dismisses idea of bankruptcy

American Airlines (AA, Dallas/Fort Worth) CEO Doug Parker has rejected the notion that the carrier may consider Chapter 11 bankruptcy as an option, saying, “I don’t think people should view bankruptcy as a financial tool. […] Bankruptcy is failure, and I’m not going to do that.” “While some like to play the game of ‘Gee who might be in trouble?’ I think we’re all going to be fine,” Parker told the Bernstein Strategic Decisions Conference last week, according to Forbes. “I don’t think you’ll see any airline go by the wayside as a result of this crisis.” American’s debt, which is higher than that of Delta Air Lines or United Airlines, prompted concerns even before the coronavirus outbreak, which continues to keep airline travel at minimal levels while the US economy contracts. On May 12, Boeing CEO Dave Calhoun told NBC’s Today broadcast that he believed a major US airline would go out of business this year, saying, “I don’t want to get too predictive on that subject, but yes, most likely. You know, something will happen when September comes around.”