AA is definitely in trouble. On a daily basis, their expenditures greatly exceed their income. They have some serious work to do before they return to profitability (which I think they will). Will they file for bankruptcy? Am I a phophet? Who knows?? But even if they do, operations will continue and your miles will be 'safe'. If they go the Chap. 11 route, I would expect they would emerge from it profitable instead of going the way of PanAm and Eastern.