The US lifts sanctions on Fly Baghdad after the Treasury Department removed the Iraqi airline from its counter-terrorism sanctions list. The decision follows a review that found major changes in the company’s operations and conduct.
The US Treasury announced that Fly Baghdad Airlines, Iraq Express, and two Boeing 737 aircraft were removed from the Specially Designated Nationals list. The sanctions were originally imposed in 2024 over alleged links with Iran’s Islamic Revolutionary Guard Corps Quds Force.
A Treasury official said the decision was based on changes made by the airline and was not connected to any broader change in US policy toward Iran. The official added that the move was separate from ongoing diplomatic discussions involving regional issues.
The announcement comes after the US lifts sanctions on Fly Baghdad as part of the Office of Foreign Assets Control’s process to reassess sanctions when listed entities demonstrate changes in their activities. Officials said the airline had addressed the conduct that led to its designation.
The Treasury did not provide specific details about the operational changes made by Fly Baghdad. However, officials stated that the company had shown significant improvements that made its continued listing unnecessary.
The airline had previously faced restrictions after US authorities accused it of supporting activities linked to Iran’s Quds Force. The removal of sanctions now allows the company to operate without the previous financial and regulatory limitations.
Officials warned that sanctions could be restored in the future if the airline returns to activities considered sanctionable. The decision reflects a conditional policy review rather than a permanent guarantee of removal.
