ATA files for bankruptcy

ATA Airlines has announced that it has filed for voluntary bankruptcy.

The carrier made its petition, under Chapter 11, to the U.S. Bankruptcy Court for the Southern District of Indiana yesterday (Wednesday, April 2).

All ATA flights were discontinued as of 4am (Eastern Time) this morning (Thursday, April 3). This means the airline is unable to honor any reservations or tickets for current or future travel.

ATA is currently holding talks with airlines offering similar routes to provide alternative arrangements for passengers.

Doug Yakola, Chief Operating Officer of ATA, said: "We deeply regret the disruption and hardship caused by the sudden shutdown of ATA, an outcome we and our employees had worked very hard and made many sacrifices to avoid."

He explained that changes to ATA's military charter business and the increased cost of jet fuel have led to the decision.

Passengers who booked ATA tickets with a credit card may be able to obtain a refund by contacting their credit-card providers. Those who booked tickets from Southwest Airlines as part of the ATA-Southwest codeshare arrangement should contact Southwest on (800) 308-5037 for further information.

The ATA frequent-flyer program and all accrued points will also be cancelled.

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