American Airlines has dropped its lawsuit against Google Inc. over its search engine directing some users to advertisements for the airline’s competitors.

American sued the search giant last year seeking unspecified damages for trademark infringement. Last week, a federal district court judge in Fort Worth dismissed the lawsuit.

Each side agreed to pay its own legal fees, and American recovered nothing from Google, according to an order signed by Judge John McBryde.

“We are pleased that we were able to resolve these claims on mutually satisfactory terms,” said Tim Wagner, a spokesman for Fort Worth-based American, a unit of AMR Corp.

Google officials did not immediately respond to a request for comment.

American was upset that when Google users entered search terms such as AAdvantage, the trademark name of its frequent-flier program, the results included Web sites that had no connection to American.

The airline said the results could confuse consumers and divert customers from its own Web site.

Google said its handling of trademarks in searches balanced trademark owners’ interests and consumer choice.

The Internet company has settled similar cases brought by other U.S. companies, including those brought by insurer Geico and retailer American Blind & Wallpaper Factory Inc., but lost cases in France.