American Airlines has ousted chief executive Don Carty after employees rebelled over his failure to disclose executive bonuses and pensions.
Sources say the world's largest airline may still file for bankruptcy within days.
In a move that followed criticism of Mr Carty's silence about executive perks while workers were accepting deep wage cuts, AMR Corp, the parent of American Airlines, said it was replacing him with president and chief operating officer Gerard Arpey.
American Airlines may file for Chapter 11 bankruptcy protection in New York within days, sources told Reuters. They said the timing depends on whether the flight attendants, who have been reluctant to endorse deep pay cuts, go ahead and accept the concessions.
It was still possible the airline could avoid a quick bankruptcy filing if the flight attendants approve the cuts, the sources said.
If American does seek court protection, it would be the largest bankruptcy filing in airline history, outstripping that of United Airlines last December.