Qatar Airways said it wouldn't proceed with a planned investment in American Airlines Group Inc., following a chilly reception from the U.S. carrier.

Buying a stake "no longer meets our objectives," Qatar Air said in an emailed statement Wednesday, alluding to the latest "public disclosure" by American without elaborating. The U.S. carrier reported financial results July 28, capping an earnings season in which rising concerns about airlines' pricing power dragged industry stocks to their worst month in a year.

The decision by Qatar Air marks a victory for American Chief Executive Officer Doug Parker, who called the proposed stake purchase "puzzling at best and concerning at worst.'' American, Delta Air Lines Inc. and United Continental Holdings Inc. have fought a running battle against Qatar Air and two other Persian Gulf carriers, which U.S. airline executives accuse of getting unfair advantages from $50 billion in alleged government subsidies.

American fell 1.7 percent to $50.18 at 12:44 p.m. in New York.

"We respect Qatar Airways' decision not to proceed with its proposed investment in American Airlines," said Matt Miller, a spokesman for the Fort Worth, Texas-based carrier. "This in no way changes the course for American."

Qatar Air had been interested in acquiring about 10 percent of American, which would have put the state-owned company on par with Warren Buffett's Berkshire Hathaway Inc. among shareholders of the world's largest carrier. Any stake purchase of more than 4.75 percent would have required approval by the U.S. airline's board.

The Middle Eastern carrier, led by CEO Akbar Al Baker, said it would "continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives." Qatar Air owns major stakes in British Airways parent IAG and Latam Airlines Group.

The nation of Qatar is embroiled in a standoff with a Saudi-led alliance that severed their diplomatic and transport links in June. The dispute broke out after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt accused Qatar of backing extremism and imposed sanctions.

Qatar denies supporting terrorism, and says the moves against it were an attempt by Saudi Arabia to impose its will on smaller nations in the Persian Gulf. Qatar's isolation has forced the world's richest country on a per capita basis to open new trade routes to import food, building materials and equipment for its natural gas industry. It also triggered a rating downgrade of Qatar's sovereign debt by S&P Global Ratings.