One of the largest airlines in the US, US Airways, has filed for bankruptcy protection after it reported losses of nearly $1.5 billion last year.
The company, which employs 35,000 people, said it was hoping to reorganise and return to profitability.
Management has already made 11,000 workers redundant and cut nearly a quarter of its routes to try to reduce costs.
The airline - the sixth biggest in the US - is understood to have suffered badly in the wake of the September 11 attacks and the global economic downturn.
US Airways' liabilities have reached approximately $7.8 billion, exceeding its assets by about $20m, which experts say could complicate its financial turnaround.
