Fly Baghdad Removed from U.S. Sanctions List Following Two-Year Compliance Transformation

Business Wire

Airline announces full restoration of commercial operations and invites passengers and business partners to reconnect

BAGHDAD, Iraq--(BUSINESS WIRE)--
Fly Baghdad has announced that it has been removed from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Blocked Persons (the "SDN List"), marking the successful conclusion of a comprehensive two-year compliance transformation.

The delisting was published on August 5, 2026, and is effective immediately. As of that date, Fly Baghdad is no longer subject to U.S. blocking sanctions, and persons in the United States and worldwide may transact with the airline in the ordinary course of business. The delisting also extends to all aircraft previously identified as blocked property, which are likewise unblocked effective the same date.

The delisting reflects the successful completion of a comprehensive, company-wide compliance transformation undertaken by Fly Baghdad over the past two years. This achievement demonstrates sustained investment in governance, compliance, transparency, and responsible corporate conduct aligned with internationally recognized best practices.

“This is the result of two years of disciplined work by our people to rebuild trust in how we operate,” said Alaulddin Abdulrahman, Chief Executive Officer of Fly Baghdad. “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 recognizes that work, and we intend to keep earning it every day.”

With the delisting now effective, Fly Baghdad welcomes the resumption of normal commercial relationships with banks, payment providers, insurers and reinsurers, aircraft lessors, maintenance providers, fuel suppliers, distribution systems, travel agencies, and all other commercial partners.

Fly Baghdad looks forward to rebuilding and expanding long-term relationships with financial institutions, aviation partners, suppliers, and service providers worldwide. Counterparties may independently verify the airline's removal from the SDN List by reviewing yesterday's announcement from the U.S. Department of the Treasury, available here, or by conducting a search using OFAC's official Sanctions List Search tool or reviewing the corresponding Federal Register notice.

Fly Baghdad is owned by its Founder and Chairman, Ahmad Asad. No person currently or previously designated on the SDN List holds, or has ever held, any ownership interest in the airline. Basheer Al-Shabbani, the airline’s former chief executive officer, never held any equity in Fly Baghdad and has no role in its ownership, management, governance, or operations. Consistent with these facts, OFAC’s August 5, 2026 action also amended Mr. Al-Shabbani’s SDN entry to remove any reference linking him to Fly Baghdad.

Fly Baghdad's Compliance Team stands ready to support counterparties with due diligence, onboarding, and compliance-related inquiries.

“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,” said Ahmad Asad, Chairman of Fly Baghdad. “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.”

Mr. Asad added: “On behalf of our board and our employees, I thank the airline’s legal team — led by 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 — whose counsel guided every step of this effort.”

Tickets are available through the Fly Baghdad website, sales offices, call center, and authorized travel agents, and all existing bookings will be honored.

The airline is working closely with aviation authorities, airports, and industry partners to restore, strengthen, and expand its network in a phased, safe, and orderly manner. Updated schedules, destinations, and booking information will be announced through Fly Baghdad's official communication channels in the coming days.

“Our priority now is simple: reconnect people, support commerce, and deliver safe, reliable, and affordable air travel to every community we serve,” Mr. Abdulrahman added. “To the passengers, employees, and partners who stood by us throughout this journey—thank you. We look forward to welcoming you on board.”

Above all, Fly Baghdad extends its deepest appreciation to its employees—the pilots, cabin crew, engineers, technicians, and ground staff—whose professionalism, resilience, and unwavering commitment carried the airline through one of the most challenging periods in its history. This milestone belongs to them.

“Our focus now shifts from transformation to growth,” Mr. 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.”

About Fly Baghdad

Fly Baghdad is a privately owned Iraqi airline, owned by its Chairman, Ahmad Asad, and headquartered at Baghdad International Airport. Since launching scheduled operations in 2017, the airline has connected Iraq with destinations across the Middle East and beyond. Fly Baghdad is committed to providing safe, reliable, and affordable air travel while operating in accordance with the highest standards of safety, governance, compliance, and customer service.

Following its removal from the OFAC SDN List, the airline is focused on expanding its network, strengthening international partnerships, and supporting Iraq's growing aviation sector.