US Sanctions Lifted:Fly Baghdad to Resume Flights/First Destination lstanbul

The US Treasury Department removed Iraq-based Fly Baghdad from its sanctions list on 5 August 2026. With the decision now in effect, the airline will once again be able to work with banks, aircraft leasing companies and insurance providers.

Fly Baghdad plans to begin operations with a single Boeing 737 on the Baghdad–Istanbul route. The company aims to add Erbil flights back to its schedule at a later stage. Maintenance work is reportedly under way in Baghdad and Istanbul on the aircraft in its fleet, which consists of three Boeing 737s and one Bombardier CRJ200.

Founded in 2015, Fly Baghdad was placed under US sanctions in 2024 over allegations that it provided support to Iran-backed armed groups. The company, which had suspended operations several times before, most recently halted flights in February 2026 due to geopolitical developments in the region.