Spain's Iberia said on Thursday that it would give up its bid for Spanair, shortly after the Chairman said that the carrier was reconsidering its stand on the move due to tough times in the industry.

In a statement issued to the Spanish Stock Exchange after the closing of the market, Iberia said that it would take out its bid as there was no agreement on conditions of the offer.

Shares of the airline all over the world have been affected in recent months as a result of a huge rise in oil prices and a slowdown in economic development, making its bid steeper than when the board of the Spanish carrier passed an offer in the month of February.

While speaking at a news conference before the annual shareholders meeting, Chairman Fernando Conte, said, "The truth is the clock is ticking. The environment is changing. We have to consider what is the future of our offer within this new market environment?"

Scandinavian airline SAS said that it might cancel its plan to sell Spanair if it failed to achieve a deal before the end of the second quarter.

A statement from the Stockholm-based carrier said, "If SAS does not reach a satisfactory solution regarding the divestment, SAS will abandon the current sales process and continue as a shareholder committed to ensure a profitable Spanair".

Among other potential bidders include charter carrier Gadair and a group of Catalan businessmen in association with an industrial investor.