Iraqi Airways Boeing 787.
Iraq’s national carrier will resume flights to Iran in October after securing a special exception to U.S. sanctions, the Iraqi Ministry of Transport announced on Sept. 29.
The exception allows Iraqi Airways to operate direct services to Iran, days after Baghdad banned flights to and from Iran on Sept. 25 to comply with U.S. restrictions on services to Iranian airlines. The Iraqi government had requested exemptions for pilgrimage, medical treatment and education travel.
The ministry credited Iraqi Prime Minister Ali Falih Al-Zaidi and Transport Minister Wahab Al-Hassani for the outcome. Its statement said the effort reflected a commitment to “strengthening bilateral communication and securing air transport routes.”
Iraqi Airways staff are working “at an accelerated pace” to prepare aircraft and complete operational requirements, the statement said.
Flights will depart from Najaf International Airport once regulatory and technical conditions are met and operations comply with approved regulations. No date has been given for the first flight.
The announcement follows a prolonged disruption. Iranian airlines stopped flying to Iraq on Sept. 23, while Iraqi Airways suspended its Iran services at the start of March as a precaution during the military escalation, citing the safety of flights and passengers.
The Iran-Iraq market has already shrunk sharply. According to current OAG data, it offers 323,852 two-way seats in summer 2026, down 46.1% from 600,840 a year earlier and 70.4% below the peak of 1.09 million seats in summer 2024.
Five airlines operate scheduled capacity this summer, down from seven a year ago, and all are Iranian. Caspian Airlines is the largest, with 167,280 seats and a 51.7% share, followed by Iran Air with 72,156 seats (22.3%) and Mahan Air with 70,442 seats (21.8%).
Iraqi Airways was the biggest carrier in summer 2025, with 171,438 seats and a 28.5% share. Its absence accounts for 61.9% of the market’s year-on-year capacity reduction.
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