Existing bookings to be honoured as Fly Baghdad prepares updated routes and schedules.
Dubai: Fly Baghdad has been removed from the US sanctions list after two years, enabling the Iraqi carrier to resume normal commercial operations and begin restoring its flight network.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) removed Fly Baghdad from its Specially Designated Nationals and Blocked Persons list on August 5, with the decision effective immediately.
Passengers with existing bookings will have their tickets honoured, while Fly Baghdad said revised schedules, destinations, and booking details will be announced in the coming days.
The delisting means the airline is no longer subject to US blocking sanctions, allowing individuals and businesses in the United States and other jurisdictions to conduct normal transactions with the carrier.
Aircraft that had previously been designated as blocked property have also been released from those restrictions.
Airline begins rebuilding its network
Fly Baghdad said it is working closely with aviation authorities, airports, and industry partners to gradually restore and expand its route network in phases.
Tickets are currently available for purchase through the airline’s website, sales offices, call centre, and authorised travel agents.
“Our priority now is simple: reconnect people, support commerce, and deliver safe, reliable, and affordable air travel to every community we serve,” Chief Executive Officer Alaulddin Abdulrahman said. “To the passengers, employees, and partners who stood by us throughout this journey, thank you. We look forward to welcoming you back on board.”
The airline has not disclosed details of additional destinations or revised flight frequencies, saying updates will be announced through its official channels.
Banks and suppliers can resume business
The delisting enables Fly Baghdad to restore normal commercial relationships with banks, payment service providers, insurers, aircraft lessors, maintenance companies, fuel suppliers, distribution systems, and travel agencies.
Fly Baghdad said the decision followed a two-year programme focused on strengthening governance, compliance, transparency, and corporate controls.
“This is the result of two years of disciplined work by our people to rebuild trust in how we operate,” Abdulrahman said. “We did not ask for trust—we set out to earn it through governance, controls, and transparency that meet the highest international standards. Today’s decision recognises that work, and we intend to keep earning that trust every day.”
The airline said its compliance team will work closely with banks and other counterparties to support due diligence and onboarding requirements as commercial relationships are restored.
“When we began this work two years ago, we made one commitment: Fly Baghdad would meet the highest standards of compliance and governance, or it would not fly. That commitment is now embedded in how this company is governed, staffed, and operated. To our banking, leasing, insurance, and commercial partners: our doors—and our books—are open.”
— Ahmad Asad, Chairman of Fly Baghdad
Ownership details clarified
According to the airline, Fly Baghdad is owned by its founder and chairman, Ahmad Asad.
The airline said no individual currently or previously designated on the US Specially Designated Nationals (SDN) list holds, or has ever held, an ownership stake in Fly Baghdad.
It added that former Chief Executive Officer Basheer Al-Shabbani has never held equity in the airline and has no involvement in its ownership, management, governance, or day-to-day operations.
The airline also noted that the US Office of Foreign Assets Control’s (OFAC) August 5 action amended Al-Shabbani’s SDN listing by removing the reference linking him to Fly Baghdad.
Focus shifts to restoring flights
Fly Baghdad, which launched scheduled operations in 2017, has historically connected Iraq with destinations across the Middle East and other international markets.
The airline said its immediate priority following the removal of US sanctions is to strengthen existing partnerships, establish new commercial relationships, and gradually restore its flight network.
