In 2003, APFA played a major role[citation needed] in keeping American Airlines solvent and out of bankruptcy by giving back an employee bailout of $340 million in annual salary and benefits, for a total of over $3 billion.

On November 22 President Bill Clinton intervened in the labor dispute and persuaded both sides to submit to binding arbitration[2] ending the 11-day strike on its 5th day.

After years of losses, plunging capital stock prices, contract negotiations, and failed business strategies, in November 2011, American Airlines filed for Chapter 11 protection in the US Bankruptcy Court for the Southern District of New York.

All three of the unions on the property were awarded a seat, as were the Pension Benefit Guaranty Corporation (PBGC), Boeing Capital, Hewlett-Packard, and three major bond-holders.

In March 2012, facing pressure from APFA, Allied Pilots Association (APA), Transport Workers Union of America (TGWU), the PBGC and others, American backed off its original demand to terminate pensions and instead offered to freeze them.

Additionally, the agreement included a Voluntary Early-Out Program that allows flight attendants to take a lump sum payment and retire.