AIRASIA X will suspend its four-times weekly service between Kuala Lumpur and Tehran from October 15.
Passengers who have booked flights beyond October 14 will be offered a full refund or credit shell.
The Malaysia-based carrier cited “challenging economic and business conditions including the volatility of the Iranian currency” as its basis for pulling out.
AirAsia X’s decision comes just months after the Malaysian Association of Tour & Travel Agents and the Iranian Tour Operators Association inked an MoU to collaborate on tourism-related events and promotion of each other’s products.
Both associations have an agreement with Mahan Air, Iran Air and AirAsia X to allocate up to 50 per cent of their capacity on the outbound sector between Kuala Lumpur and Tehran. Mahan Air and Iran Air will continue to serve Kuala Lumpur.
Earlier this year, AirAsia X suspended operations to Christchurch, London, Paris, New Delhi and Mumbai.
