DUBAI (Reuters) - Etihad Airways said on Thursday it would stop flying to Dallas-Fort Worth next year after American Airlines' (O:AAL) decided in July to end a codeshare agreement between the two carriers.
American Airlines has lobbied the U.S. government to investigate allegations of state subsidies at Etihad and other major Gulf carriers. The Gulf airlines deny the allegations.
The end of the codeshare agreement would make the route "commercially unsustainable" and left Etihad "with no choice but to suspend flights" from March 25, 2018, Chief Executive Peter Baumgartner said in a statement.
“The cancellation of the Dallas route is one of several adjustments that we are making to our U.S. network in 2018 in order to improve system profitability," he said.
Since launching a strategy review last year, Etihad has appointed a new group chief executive who will take over in January, sold a stake in a European carrier, and withdrawn financial support from Alitalia [CAITLA.UL] and Air Berlin (DE:AB1), which led to both airlines entering administration.
Etihad said it had carried more than 235,000 passengers to Dallas-Fort Worth since it started flying to the American Airlines' hub in 2014.
Etihad also operates passenger flights to Chicago, Los Angeles, New York and Washington.