Airline schedules are highly dependent on various factors of uncertainties such as unfavorable weather conditions, mechanical problems, natural disaster, airport congestion, and strikes. If the schedules are not properly managed to cope with such disturbances, the operational cost and performance are severely affected by the delays, cancelations, and so forth. This is described as a disruption. When the disruption occurs, the airline requires the feasible recovery plan returning to the normal operations in a timely manner so as to minimize the cost and impact of disruptions. In this research, an Ant Colony Optimization (ACO) algorithm with re-timing strategy is developed to solve the recovery problem for both aircraft and passenger. The problem consists of creating new aircraft routes and passenger itineraries to produce a feasible schedule during a recovery period. The suggested algorithm is based on an existing ACO algorithm that aims to reflect all the downstream effects by considering the passenger recovery cost as a part of the objective function value. This algorithm is complemented by re-timing strategy to effectively manage the disrupted passengers by allowing delays even on some of undisrupted flights. The delays no more than 15 minutes are accepted, which does not influence on the on-time performance of the airlines. The suggested method is tested on the real data sets from 2009 ROADEF Challenge, and the computational results are compared with the existing ones on the same data sets. The method generates the solution for most of problem set in 10 minutes, and the result generated by re-timing strategy is discussed for its impact.