FORT WORTH, Texas -- The war in Iraq could be pushing Fort Worth-based American Airlines closer to filing bankruptcy. KXAS-TV reports the company could file for Chapter 11 protection by the first of next week.

Industrywide, tickets sales are off 40 percent on international routes and 20 percent on domestic flights over the next two-to-three months.

Empty jets are adding to speculation that the world's largest carrier will be forced into bankruptcy.

American officials responded to the bankruptcy question by saying they refuse to comment on speculation.

In a recorded message to employees American CEO Don Carty said: "We're continuing to work diligently to restructure our employee costs all across our company."

"The cooperative, collaborative approach that we're using to find solutions to our cost problem is working," Carty said.

American's pilots are looking at options as well.

"This pilot association is just not going to sit around. We're gonna make the decisions that we have to make in concert with other organized labor at American Airlines to save this airline from bankruptcy," Capt. Steve Blankenship said.

A group of pilots has discussed an employee buyout taking the issue to other unions at American, including the flight attendants, who are listening but still looking to cut a deal with current management.

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