Fly Baghdad removed from US sanctions list, airline begins phased network restoration

Dubai: Fly Baghdad has been removed from the US sanctions list after two years, allowing the Iraqi airline to resume normal commercial dealings and begin rebuilding its flight network.

The US Department of the Treasury’s Office of Foreign Assets Control removed Fly Baghdad from its Specially Designated Nationals and Blocked Persons list on August 5, with the decision taking immediate effect.

Passengers with existing bookings will have their tickets honoured, while the airline said updated schedules, destinations and booking information will be announced in the coming days.

The removal means Fly Baghdad is no longer subject to US blocking sanctions, allowing people and businesses in the United States and elsewhere to transact with the carrier in the ordinary course of business.

Aircraft previously identified as blocked property have also been unblocked.

Airline begins rebuilding its network

Fly Baghdad said it is working with aviation authorities, airports and industry partners to restore and expand its network in phases.

Tickets are currently available 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 on board.”

The airline has not provided details of additional destinations or revised flight frequencies, saying those will be communicated through its official channels.

Banks and suppliers can resume dealings

The delisting also allows Fly Baghdad to restore normal commercial relationships with banks, payment providers, insurers, aircraft lessors, maintenance providers, fuel suppliers, distribution systems and travel agencies.

Fly Baghdad said the decision followed a two-year programme covering 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 action recognizes that work, and we intend to keep earning it every day.”

The airline said its compliance team will assist banks and other counterparties with due diligence and onboarding requirements as commercial relationships resume.

Ownership details clarified

Fly Baghdad is owned by founder and chairman Ahmad Asad, according to the airline.

The company said no person currently or previously designated on the SDN list holds or has held an ownership interest in Fly Baghdad.

Former chief executive Basheer Al-Shabbani did not hold equity in the airline and has no role in its ownership, management, governance or operations, the company said.

OFAC’s August 5 action also amended Al-Shabbani’s SDN entry to remove the reference linking him to Fly Baghdad.

Focus shifts to restoring flights

Fly Baghdad, which began scheduled operations in 2017, has historically connected Iraq with destinations across the Middle East and other international markets.

The airline said its immediate focus following the sanctions removal will be on strengthening existing partnerships, adding new commercial relationships and restoring its network.