In 2011, AMR Corporation, the holding company of American Airlines (AA), filed for bankruptcy protection and was seeking approval for a merger with US Airways. Over the past decade, the U.S. airline industry has faced new challenges, due to volatile fuel prices, limited organic growth and slowing demand for air travel. Most LCC and legacy airlines have responded to the developments with bankruptcy, reorganization or simply a new pricing strategy. Consolidation among airlines may actually be the most common remedy for the domestic airline industry. There have been five major airline mergers: Continental Airlines with United Airlines (2010), Republic Airlines with Frontier (2009), US Airways with America West Airlines (2005), Delta Air with Northwest Airlines (2008), and Southwest with AirTran Airways, which was one of the first transactions involving an LLC. In 2011, American Airlines announced that it would file for Chapter 11 bankruptcy. This chapter was originally designed to accommodate the complex reorganization of public benefit corporations. It allows companies with court approval to reject collective bargaining agreements and renegotiate contracts with creditors. On April 15, AMR Corporation, which is the parent company of American Airlines, Inc. and a subsidiary providing aviation services, approved a reorganization plan to exit bankruptcy protection based on its merger with US Airways (American Airlines, 2008 ). Due to the terrorist attacks of September 11, there was also a decline in air travel. American Airlines was created from a combination of 80 smaller airlines in 1930. In 2008, AA was considered the largest airline in the world until the competition... at the center of the paper... was the cost of fuel for airplanes. Management and operations loaded planes with more fuel than necessary, which represented a huge expense for airlines. This forced them to cruise at higher altitudes to burn fuel before landing. Fuel strategy is a risk that can mitigate or increase costs, depending on the contract and the market price of fuel. For future contracts they must negotiate the fuel price freeze, regardless of the economic issue. The merger may have changed the lives of many who invested in the airline industry. Many employees were facing layoffs and pay cuts before the decision to merge. Bankruptcy in recent years has led many airlines to merge with each other. We cannot say exactly whether there will be changes in the next two years. We will see a difference in ticket prices as the airline industry is competitive.