Qatar Airways has abandoned plans to take a 10% stake in American Airlines saying the investment “no longer meets our objectives”.

American Airlines chief executive Doug Parker had declared he was “unexcited”‎ by the prospect of Qatar acquiring a stake.

In mid-July American announced it was severing its code-share arrangements with Qatar and rival Gulf carrier Etihad Airways.

In a statement, Qatar Airway said it had decided “not to proceed with its proposed passive financial investment in American Airlines.

“Further review of the investment, taking into account the latest public disclosure of American Airlines, has demonstrated the investment no longer meets our objectives.

“Qatar Airways will continue to investigate alternative investment opportunities in the USA and elsewhere.”

‎Chief executive Akbar Al Baker had previously responded to American’s opposition by saying: “Our stock purchase request and filing is going ahead as normal.”

‎The US carrier greeted the announcement by saying: “We respect Qatar Airways’ decision.”

Earlier, Parker had described Qatar’s aim of taking a stake as “puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received”.

American and fellow US carriers Delta Air Lines and United continue to press Washington to restrict the access of ‎ Gulf carriers Qatar, Emirates and Etihad to the US.

Qatar Airways is also under pressure in the Gulf region owing to the boycott of Qatar by Saudi Arabia, the UAE and other states over alleged government support for terrorist groups.

The airline owns a significant stake in British Airways parent IAG, a joint venture partner with American Airlines.