American Airlines risks having to tap its $5 billion bankruptcycash fund and probably will lose some passengers after on-timearrivals tumbled, cancellations surged and incorrectly installedseat clamps were found on six planes.

The operational obstacles add to questions about whetherAmerican, the third-biggest U.S. airline, can successfully emergefrom bankruptcy protection on its own or should merge with would-besuitor US Airways Group Inc., said James Corridore, a Standard& Poor's equity analyst in New York.

“Certainly things are not going well in the reorganizationprocess right now,” Corridore said in an interview. “These aremajor hiccups.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.