Fly Baghdad removed from US sanctions list after 2-year compliance overhaul
Iraqi airline restores commercial ties with banks, lessors and travel partners
DUBAI – Fly Baghdad has been removed from the United States sanctions list after completing what it described as a comprehensive two-year compliance transformation, allowing the Iraqi carrier to fully restore commercial operations and reconnect with financial institutions, aviation partners and passengers worldwide.
The decision takes immediate effect following the airline's removal from the US Department of the Treasury's Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Blocked Persons (SDN List). The development also unblocks the airline's aircraft and clears the way for normal business transactions across the global aviation industry.
The delisting, published on August 5, 2026, means Fly Baghdad is no longer subject to US blocking sanctions. Individuals and businesses in the United States and elsewhere can now conduct transactions with the airline in the ordinary course of business, while aircraft previously identified as blocked property have also been released from restrictions.
Compliance drive
According to Fly Baghdad, the decision follows two years of company-wide reforms aimed at strengthening governance, transparency and compliance in line with internationally recognised standards.
Chief Executive Officer Alaulddin Abdulrahman said the airline had focused on rebuilding confidence through measurable improvements rather than seeking goodwill.
"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 recognises that work, and we intend to keep earning it every day."
✈️ Fly Baghdad announces its removal from the U.S. OFAC sanctions list after successfully completing a comprehensive two-year compliance transformation.
— FlyBaghdad (@flybaghdad_) August 5, 2026
This milestone marks the full restoration of the airline’s commercial operations, with passengers and business partners pic.twitter.com/sDa6j2Y0xG
With the sanctions lifted, the airline expects to resume normal relationships with banks, payment providers, insurers and reinsurers, aircraft lessors, maintenance providers, fuel suppliers, distribution systems, travel agencies and other commercial partners.
Fly Baghdad said it is looking to rebuild existing partnerships while establishing new long-term relationships with financial institutions, suppliers and aviation service providers around the world.
The airline also noted that counterparties can independently verify its removal from the SDN List through OFAC's official sanctions resources and the corresponding Federal Register notice.
Ownership clarified
As part of its announcement, Fly Baghdad reiterated that it is privately owned by founder and chairman Ahmad Asad. The airline stated that no person currently or previously designated on the SDN List has ever held any ownership interest in the company.
It also clarified that former chief executive officer Basheer Al-Shabbani never owned equity in Fly Baghdad and has no role in its ownership, management, governance or operations. The airline said OFAC's August 5 action amended Al-Shabbani's SDN entry by removing any reference linking him to Fly Baghdad.
Fly Baghdad added that its compliance team is available to assist banks, business partners and service providers with due diligence, onboarding procedures and other compliance-related enquiries.
Chairman Ahmad Asad said the airline had remained committed to meeting the highest governance standards throughout the transformation process.
"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," Asad said. "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."
He also acknowledged the legal teams that supported the airline throughout the compliance process, thanking Eric H. Blinderman and Raid Juhi AlSaedi of the Law Offices of Eric H. Blinderman, together with Reid Whitten and Scott Maberry of Sheppard Mullin, for guiding the effort.
Tickets available now
Fly Baghdad confirmed that tickets are now available through its official website, sales offices, call centre and authorised travel agents, while all existing bookings will be honoured.
The carrier said it is coordinating with aviation authorities, airports and industry partners to restore and expand its route network in a phased, safe and orderly manner. Updated schedules, destinations and booking information are expected to be announced through the airline's official communication channels in the coming days.
Abdulrahman said the immediate focus is on reconnecting communities and supporting economic activity through reliable and affordable air services.
"Our priority now is simple: reconnect people, support commerce, and deliver safe, reliable, and affordable air travel to every community we serve," he said, while thanking passengers, employees and business partners for their continued support.
The airline also paid tribute to its workforce, including pilots, cabin crew, engineers, technicians and ground staff, describing their professionalism and resilience as instrumental during one of the most challenging periods in its history.
"Our focus now shifts from transformation to growth," Abdulrahman said. "We are ready to reconnect with our passengers, partners and the global aviation community. We look forward to strengthening existing partnerships, building new ones, and writing the next chapter of Fly Baghdad together."
Founded in 2017 and headquartered at Baghdad International Airport, Fly Baghdad operates as a privately owned Iraqi airline. Following its removal from the OFAC SDN List, the carrier said it is concentrating on expanding its network, strengthening international partnerships and supporting the continued growth of Iraq's aviation sector.