American’s labor groups — including Flight Attendants — have now approved new wages, averting bankruptcy for the airline.

American projects $1.8 billion in annual savings from these agreements. However, the airline lost $3.5 billion last year.

While they have made other cuts that they say will save $2 billion, some of those cuts were in force while they were losing $3.5 billion — so they’re farther off from profitability than just adding $1.8 billion and $2 billion together.

The airline needs bookings to pick up and the economy to improve or they will continue to lose large sums of money. These labor agreements buy them time to get their house in order and for external conditions to change. But both of those must happen or American will find itself staring bankruptcy in the face again.