The company said in a statement Wednesday that it's decided "not to proceed" with its plan to buy a 10% stake in American Airlines.
Qatar Airways said on Wednesday it was backing out of its proposed investment in American Airlines, an abrupt reversal of its plans to take a big stake in the carrier. In announcing its reversal, Qatar Airways said it would look for other investment opportunities in the United States.
It was unclear what in that disclosure dissuaded Qatar Airways.
Qatar Airways no longer wants to own a piece of its American rival. Delta Air Lines (DAL) dipped 0.5%, while United Airlines (UAL) lost 1.1%. The U.S. carrier's leadership has openly expressed its disapproval of Qatar Airline's proposal.
The Qatari airline's surprise plan to buy at least US$808 million in American Airlines shares had been disclosed by the USA carrier in a securities filing on Jun 23. The Gulf carriers have denied those claims.
The proposed investment came as a surprise to many, especially as the Middle East's biggest carriers - Emirates, Etihad, and Qatar - are locked in a heated battle with the legacy carriers in the USA over the Gulf carriers' use of government subsidies.
It was a decision to that was met with hostility from American and its employees.
Qatar Airways can no longer fly to more than a dozen locations in Saudi Arabia, the UAE and Bahrain.
"We'd guess Qatar fears further isolation from the USA following punitive measures taken by its Gulf neighbors, coming in the form of a cancellation of Open Skies with the USA", he wrote.
Qatar Airways is launching 26 exciting new destinations between now and the end of 2018, including Chiang Mai, Thailand; Rio de Janeiro, Brazil; San Francisco, US; and Santiago, Chile.
Qatar Airways Group Chief Executive, Mr.