Air France-KLM, BA pull out of Iran amid US sanctions

Bloomberg

Two of Europe’s biggest carriers, Air France-KLM Group and British Airways, said they’ll suspend services to Iran, citing the reduced commercial viability of the route in the wake of the
latest US sanctions.
Air France and Dutch sibling KLM will halt flights by the end of September due to “weak commercial results,” the group said. British Airways, IAG SA’s flagship brand, said its London-to-Tehran operation will also be terminated by then because it’s “currently not commercially viable.”
The moves come after US President Donald Trump pulled out of a 2015 deal under which Iran had agreed to curb its nuclear programme in exchange for the lifting sanctions on its economy. Many European companies, including energy giant Total SA and automaker PSA Group, have since pulled back from the country, drying up the flow of business travellers.
Siemens AG said it would take “ appropriate actions to align its business with the changing multilateral framework regarding Iran.”
Both airlines had reintroduced services to Tehran about two years ago. Deutsche Lufthansa AG announced last month its Austrian unit will cease flights from Vienna to Shiraz and Isfahan mid-September for economic reasons.
Air France will stop serving Tehran on September 18, a spokesman said, while KLM said earlier it would end flights by September 24. Both airlines said the decision was related to business performance, not directly tied to US sanctions. BA will make its final trip to the Iranian capital on September 22.
Air France was serving Tehran via its lower-cost unit Joon, which covers lower margin routes.
In May, it said it would only fly during the summer due to lack of demand.
It also reduced the number of frequencies last month to one a per week, from three previously.