The U.S. Treasury’s Office of Foreign Assets Control removed Fly Baghdad Airlines Company from its counterterrorism sanctions list on 5 August, clearing the Iraqi carrier, its Iraq Express alias and two Boeing 737 aircraft from the designation. The delisting restores the airline’s ability to do business with banks, insurers, lessors, maintenance providers, fuel suppliers and distribution partners, while ticket sales have resumed.
The action reverses sanctions imposed in January 2024 over alleged links to Iran’s IRGC Quds Force and accusations that the carrier moved fighters, weapons and funds for Iranian-backed groups. Treasury linked the removal to changes in the airline’s behaviour and concluded that the designation was no longer warranted, while keeping open the option of reimposing sanctions if circumstances change.
The two aircraft identified in the case were previously registered as YI-BAF and YI-BAN. Fly Baghdad remains barred from EU operations under the bloc’s Air Safety List, leaving the carrier subject to separate safety-related restrictions despite the U.S. delisting.