Qatar Airways will not proceed with its proposed financial investment in American Airlines Group Inc, reversing an earlier decision to build a stake of up to 4.75 percent in the US carrier.
“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 said in a statement.
The statement did not elaborate, but in its most recent financial disclosure American Airlines posted profit and revenue that exceeded analysts’ expectations.
“Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives,” the Qatar Airways statement said.
The news came as a relief to American Airlines executives, who have from the beginning been vocally opposed to the share buy.
“We respect Qatar Airways’ decision not to proceed with its proposed investment in American Airlines. This in no way changes the course for American,” American Airlines spokesman Matt Miller said.
Qatar Airways’ proposal to buy into American was met with suspicion by critics at a time when Qatar is embroiled in the region’s worst diplomatic crisis in years with three other Gulf states.
The state-owned carrier lost access to 18 Middle East destinations in fallout from the ongoing regional political crisis.