Technical Issues at American Airlines Halt Domestic Flights

American Airlines (AAMRQ.PK) announced on Tuesday afternoon that it is experiencing a technical error with its reservation system that has caused a system-wide ground delay. As a result, passengers have reportedly been stranded across the country because planes have been unable to leave gates.

Initially, American Airlines thought its reservation and booking tool Sabre was offline, but that turned out not to be the case. The Wall Street Journal reports that a spokeswoman said in an email that its reservation system was “experiencing intermittent outages.”

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Whatever the problem is, it looks like American Airlines plans to have it resolved by 5:00 p.m. EST.

Before the incident, AMR Corp. — the parent company of American Airlines — was trading as much as 7 percent higher on the OTC market. Earlier in the day, Bloomberg reported that the company filed for a plan to exit bankruptcy protection that is largely based on the merger between American Airlines and US Airways Group (NYSE:LCC). The companies won approval to proceed with the merger in March, but can not move forward until the airline emerges from court bankruptcy protection.

US Airways stock was up as much as 5 percent in late-afternoon trading, participating in broad gains across major airline stocks.

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Reuters reports that the Federal Aviation Administration said American Airlines requested a halt to hundreds of domestic flights. American Airlines provided this update:

American Airlines (AmericanAir) on Twitter

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