Fly Baghdad has been removed from the US Treasury’s OFAC SDN sanctions list, clearing the Iraqi carrier to resume normal commercial dealings and begin rebuilding services after a two-year restriction. The delisting covers the airline’s corporate entity and two previously blocked Boeing 737 aircraft, restoring access to banks, payment providers, insurers, lessors, maintenance firms, fuel suppliers and distribution systems.
The move removes the most immediate legal barrier to a return to wider operations, although the recovery is expected to be gradual. Public reporting indicates schedule, route and booking restoration remain limited, and the airline still faces other regulatory constraints, including EU restrictions. Chief executive Alaulddin Abdalrahman has indicated that Baghdad-Istanbul service could restart this month, pointing to an early operational comeback after the sanctions relief.