Are the bankrupt skies the friendliest?

► We study the effect of Chapter 11 filings on the quality of the US airline service. ► Quality of service is measured by flight cancelations, delays, and age of aircraft. ► Delays and cancelations are less frequent during bankruptcy filings. ► Delays and cancelations return to prebankruptcy levels after bankruptcy. ► Firms use Chapter 11 filings to permanently reduce the age of their fleet.