Qatar Airways has taken the decision not to proceed with its proposed passive financial investment in American Airlines.
The Middle Eastern carrier had proposed to take a ten per cent stake in the oneworld airline.
American Airlines had urged Qatar Airways to reconsider the move.
American carriers, including Delta Air Lines and United, have a long running dispute with carriers based in the Middle East about the role of state support for their operations.
Qatar Airways explained in a statement: “Further review of the proposed financial investment, taking into account the latest public disclosure of American Airlines, has demonstrated that the investment no longer meets our objectives.
“Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives.
“Qatar Airways will continue to seek opportunities to invest in global aviation to support the airline’s goal to offer the best possible travel experience for its customers.”
Qatar Airways holds a 20 per cent stake in oneworld partner International Airlines Group, owner of British Airways and Iberia, as well as a ten per cent state in LATAM.