The disaster took the lives of all 228 people onboard the jet and is the worst aviation disaster for the Paris-based airline.
According to France 24, while the ruling was expected after prosecutors recommended to the Paris court not to seek a conviction, it is still a huge blow for families of victims who have waged a 14-year campaign for justice.
In a statement, Air France said it "takes note of the judgement" and "The company will always remember the memory of the victims of this terrible accident and expresses its deepest sympathy to all of their loved ones."