American Airlines' parent company AMR Corporation has filed for Chapter 11 bankruptcy Tuesday, making AA the last major U.S. airline to do so.

 American Airline files for Bankruptcy to Cut Cost

AA has taken the measure in an attempt to drop its enormous debt load and decrease labor costs.

AMR Corp. and AMR Eagle Holding Corp. filed voluntary petitions to reorganize, in what was deemed in the companies' and shareholders' best interest.

"American took this action in order to achieve a cost and debt structure that is competitive in the airline industry so that it can continue delivering a world-class travel experience for its customers," read the statement released by the company Tuesday morning.

American Airlines is the nation's third largest airline and the only major airline that had not filed for bankruptcy protection.

The airline has said it will be operating as normal – honoring reservations, tickets, refunds, and so forth.

"American's customers are always our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us," said Horton.