Qatar Airways, a long time American partner through their mutual membership in the Oneworld airline alliance, had always stressed that its investment would be passive and that it had no wish to participate in the airline's management.
"The investment no longer meets our objectives", Qatar Airways said on Wednesday, in part citing American's latest financial results.
American did not immediately return a request for comment Wednesday.
"Previously, Parker had described Qatar's bid for a 10% stake in his company as "puzzling" in a letter to shareholders, adding that he wasn't "particularly excited" about the Qatari airline's outreach".
This move has come as Qatar Airways plans to expand its South American route network and connectivity for its passengers. We have witnessed significant growing demand between South America to Qatar and beyond...
American Airlines (AAL) on Wednesday acknowledged Qatar Airways' announcement that it would drop a bid to purchase a minority stake in the USA carrier, weeks after company CEO Doug Parker called the proposed investment "puzzling". Parker made clear that any investment by Qatar Airways would not persuade him to back off from the campaign to push the United States government to take action against alleged "illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments". The Middle Eastern airlines deny getting illegal subsidies.
American Airlines last week reported a 15.5% drop in second-quarter profit on higher fuel and labor costs.
Doha-based Qatar Airways has announced that it has entered in to a codeshare agreement with LATAM. "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".