On Wednesday, Qatar said investing in American “no longer meets our objectives.” The company said the decision takes into account American’s “latest public disclosure” but did not offer specifics.
American reported a second quarter profit of $803 million on Friday, a 15 percent drop as rising labor costs outpaced improving revenues.
“Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives,” the company said in a statement.
American said in a statement it “respects” Qatar’s decision not to proceed with the investment.
“This in no way changes the course for American,” the company said.
While Qatar could have purchased a 4.75 percent stake in American on the open market, it would have needed approval from American’s board to acquire a larger percentage of the company.
The 10 percent stake Qatar initially outlined would have equaled an investment of about $2.5 billion at American’s current valuation.
Parker has previously called the alleged subsidies “the biggest threat” to commercial aviation in the U.S., with carriers worrying that unfair competition will distort the global market and ultimately cost U.S. aviation jobs.
American recently ended its marketing relationship with Qatar and Etihad over the subsidies dispute.