Why did pan am airlines go bankrupt?

After the 1988 Lockerbie bombing of Pan Am flight 103, Many travelers avoided booking on Pan Am as they had begun to associate the airline with danger; customer complaints of rude or unhelpful customer service rose as well. Faced with a $300 million lawsuit filed by more than 100 families of the PA103 victims, the airline subpoenaed records of six U.S. government agencies, including the CIA, the Drug Enforcement Administration, and the State Department. Though the records suggested that the U.S. government was aware of warnings of a bombing and failed to pass the information to the airline, the families claimed Pan Am was attempting to shift the blame.