AirAsia X is suspending its flights between Kuala Lumpur and the Iranian capital of Tehran from October 14.
The airline said the decision was due to Iran’s challenging economic and business conditions, including the volatility of its currency.
AirAsia X launched the flight in August 2010, a move that reflected the growing business links, particularly in the oil and gas sector, between Iran and both Malaysia and other Asian nations.
The US in June launched new sanctions against Iran and has put pressure on other nations to reduce oil imports from the country.
In March this year the Malaysian state oil firm Petronas announced it was halting all imports of Iranian crude oil, according to Reuters. China, India, South Korea and Japan, other large buyers of Iranian oil in Asia, have also significantly reduced their imports of Iranian oil, and sanctions have caused its currency to plunge.
AirAsia X said it would offer passengers who hold bookings after October 14 an option of a full refund.
For more information, visit www.airasia.com/my/en/latestnews/tehran-flight-cancellation.page