American Airlines and American Eagle's parent company AMR have filed for Chapter 11 reorganization, the Associated Press reports.

AMR Corp. and AMR Eagle Holding Corp. say they filed voluntary petitions to reorganize, saying it's in the best interest of the companies and its shareholders.

CNN reports that the company said in a statement that the decision comes as it tries to "achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers."