ATA Airlines filed for bankruptcy April 2, 2008 and on April 3 discontinued all operations and cancelled all current and future flights. ATA’s Travel Rewards frequent flyer program and all accumulated Travel Awards Points were immediately canceled.

Members were informed that there was no possibility to convert their Travel Awards points to partner Southwest Rapid Rewards credits or use ATA vouchers on any other airline. And members with an ATA Visa Signature Card were told they could continue to use the card; however, Travel Awards points would no longer accumulate.

In an ATA press release, the following was mentioned as the reason for the shutdown: “A primary factor leading to these actions was the unexpected cancellation of a key contract for ATA’s military charter business, which made it impossible for ATA to obtain additional capital to sustain its operations or restructure the business.” Approximately 2,230 ATA Airlines employees lost their jobs.