Etihad Airways has announced it will cancel its Abu Dhabi-Dallas/Fort Worth route as a result of American Airlines’ decision to terminate its codeshare agreement with the carrier.

Etihad will discontinue the route as of March 25, 2018, saying it will become “commercially unsustainable” to operate the service. American Airlines informed both Etihad and Qatar in June that it would not carry on with their codeshare agreements amid a dispute over alleged illegal subsidies given to Gulf carriers.

The route commenced in 2014 and Etihad increased to a daily frequency in February 2017. The airline claims research by Oxford Economics shows it contributed US$3.8 billion to the US economy in 2016.

Peter Baumgartner, CEO of Etihad, said: “The unfortunate decision by American Airlines to terminate a commercial relationship that benefited both carriers has left Etihad with no choice but to suspend flights between our Abu Dhabi home and Dallas/Fort Worth.

“We are open to American Airlines reversing its decision to cancel our codeshare agreement so that Etihad Airways can continue the route and together protect and support American national interests and global connectivity while driving commercial value for both airlines.

“The cancellation of the Dallas route is one of several adjustments that we are making to our US network in 2018 in order to improve system profitability. Further changes are possible as we monitor the full impact of the American Airlines codeshare cancellation on summer 2018 bookings.”

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