American Air CEO says bankruptcy is an option he won’t consider

American Airlines’ top executive sought to shut down persistent rumors that the debt-laden carrier could be forced into bankruptcy during the coronavirus travel downturn, saying it’s not among options he’ll consider. “Bankruptcy is failure. We’re not going to do that,” CEO Doug Parker said Wednesday, responding to a question. “I don’t think people should view bankruptcy as a financial tool; it’s failure.” Parker’s comments underscore the scrutiny American’s finances have been under since the pandemic virtually wiped out travel demand, sending the carrier and others in the industry scrambling to secure cash as they grounded planes and slashed operations to reduce spending. American’s debt of nearly $30b and its decision to initially focus on government loan opportunities led to rising speculation about whether it might file for court protection from creditors. Parker predicted that no large US carrier would take that path during the downturn. “We’re all going to be fine,” he said. “We’re all going to raise enough liquidity. I don’t think you’re going to see anybody fall by the wayside in this crisis.”<br/>