As US deadline looms, Air France reduces Iran flights

Air France is cutting its Joon subsidiary’s service between Paris and Tehran to the summer season only, blaming poor economic performance over its two years in operation.

“Air France has decided to adapt its programme to better match demand,” a spokeswoman said by email, adding that the decision would take effect from 28 October.

Air France’s move comes amid international uncertainty over whether US President Donald Trump will pull out of a nuclear deal with Iran, although the spokeswoman said the decision was not linked to the political climate with Iran.

Under that 2015 deal, Tehran agreed to curb its nuclear programme to satisfy world powers that it would not be used to develop weapons. In exchange, Iran received relief from sanctions, most of which were lifted in January 2016.

This just shows how the uncertainty on the Iran deal is beginning to have an impact on the business sentiment towards Iran

said a European diplomat.

Bankers and others involved in business with Iran say they have been reluctant to travel to the country to close deals or negotiate the financing of existing ones because of uncertainty over the status of underlying US sanctions, even before the latest standoff between Trump and Iran.

Read: US threatens to withdraw from Iran deal unless it is ‘fixed’

French President Emmanuel Macron visited Washington last week in the hope of persuading Trump not to re-impose sanctions on Iran by a 12 May deadline and imperil the 2015 deal.

Qatar Airways, however, said demand for travel to Iran remained strong.

“We fly to Iran with a lot of frequencies. We go to three destinations in Iran,” Chief Executive Akbar Al Baker told Reuters at an event in Wales.

“Iran is a big market. We don’t get involved in politics. We are an airline.”