Fly Baghdad: Ready for Return & Growth after US Sanctions Lifted 

On 5 August 2026, US sanctions on Fly Baghdad were officially lifted, a significant accomplishment for Iraqi aviation. Welcoming this new chapter, CEO Alaulddin Abdulrahman shared: “Our focus now shifts from transformation to growth. We are ready to reconnect with our passengers, partners, and the global aviation community”. 

Originally founded on 15 July 2014 and relaunched on 14 February 2017, the Baghdad-based carrier successfully introduced the private low-cost carrier (LCC) model to Iraq under the slogan “Less Price… More Flights”. 

With a modern fleet of Boeing 737s and Bombardier regional jets, Fly Baghdad quickly became an essential part of Iraq’s aviation sector. At its operational peak, the airline:

  • Completed over 10,200 annual flights
  • Flew nearly 1 million passengers per year
  • Connected 45 airports across 15 countries
  • Financially, the airline reached an annual transaction volume exceeding $300 million, contributing approximately 1% to Iraq’s national GDP.

The Cost of Sanctions

The sudden grounding of Fly Baghdad in early 2024 wiped out a large part of Iraq’s domestic and regional aviation capacity overnight. This supply shock led to a massive 35% to 85% spike in airline ticket prices nationwide almost immediately, highlighting the fragility of the Iraqi civil aviation market and its dependence on private carriers.

Restoring Global Operations

The airline credits its two-year compliance overhaul under Chairman Ahmad Asad as the reason that the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) unblocked Fly Baghdad’s Boeing 737 fleet and fully restored its global standing across all registered corporate entities: Fly Baghdad Airlines Company, Fly Baghdad, and Iraq Express, while maintaining sanctions against Fly Baghdad’s previous owner, Basheer Abdulkadhim Alwan al-Shabbani. 

With operations restored, Fly Baghdad is reconnecting with international banking, leasing, insurance, and aviation partners. This reintegration will expand regional seat capacity, provide more competitive pricing, and support regional economic growth.

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