American posted losses for four consecutive years following the September 11, 2001 terrorist attacks. It responded by trying to lower its notoriously high labor costs, but union talks
broke down. Now AMR Corporation is working to emerge from bankruptcy under relatively new CEO Tom Horton. In November, Horton said the company's near-term future would include job and
flight reductions as it tries to cut expenses and leave bankruptcy in 15 months. Meanwhile, US Airways is angling for a merger with the bankrupt airline.