Iraqi Airways to restart Najaf–Iran services in October after limited US sanctions exemption

Iraq’s flag carrier said it plans to restart services to Iran in October after the government secured a special exemption from US sanctions that had effectively suspended many Iran–Iraq air links. The exemption is limited to Iraqi Airways and follows a wave of parliamentary pressure and public protests, particularly around Najaf International Airport.

What happened

On Sept. 29 Iraqi Airways announced, citing the state-run Iraqi News Agency (INA), that a “special exemption” from US sanctions would permit the carrier to operate direct flights to Iran beginning in October once regulatory and technical steps are completed. Several regional and international outlets reported the airline had already resumed some Najaf–Iran movements, and that the exemption was the result of government negotiations with Washington.

Why flights were disrupted

The interruption traces to new US measures targeting elements of Iran’s aviation sector. Countries and service providers, including some in Iraq, responded by suspending flights to and from Iranian carriers in late September. Iraqi authorities had already suspended services after a wind-down period, citing legal and operational exposure to potential secondary US sanctions.

What the exemption covers — and what it does not

Reporting indicates the waiver is limited in scope: it authorises Iraqi Airways to run services to Iran for specified purposes such as pilgrimage, medical treatment and education travel. It does not represent a blanket reversal that would restore access for Iranian carriers to Iraqi airports. Multiple sources emphasise that the exemption applies to Iraqi Airways specifically and that broader restrictions on Iranian airlines remain in place.

Domestic and regional fallout

The suspension of Iran–Iraq air services prompted sharp domestic pushback. Lawmakers in Basra issued a 48‑hour ultimatum demanding a reversal and threatened parliamentary action, while protests and sit‑ins were reported outside Najaf International Airport. Some political and militia‑aligned groups framed the restrictions as an infringement on Iraqi sovereignty, pressing Baghdad to restore travel for pilgrims, patients and students.

Iran’s foreign ministry publicly urged Iraq to lift the restrictions and criticised the US measures for disrupting travel for pilgrims, patients, students and businesspeople. Turkish and international outlets described the situation as one in which longstanding people‑to‑people, religious and educational links between Iran and Iraq were being affected.

Operational and market context

Industry reporting highlights that the Iran–Iraq market has already contracted significantly since 2024. OAG seat data cited by an aviation outlet showed two‑way seat capacity in summer 2026 down sharply from previous years, with Iraqi Airways having been a major capacity provider before the downturn. Iraqi Airways said its staff were working “at an accelerated pace” to prepare aircraft and meet operational requirements in line with the exemption.

Timeline of key developments

1. Early–mid September 2026: US Treasury announces actions affecting a number of Iranian airlines; a wind‑down period follows.
2. Sept. 23–25, 2026: Several countries and airport service providers begin suspending flights to and from Iranian carriers; Iraqi airports halt some Iran services.
3. Sept. 26–28, 2026: Basra lawmakers issue a 48‑hour ultimatum; protests gather outside Najaf airport and political pressure mounts.
4. Sept. 29, 2026: Iraqi government secures a special US exemption enabling Iraqi Airways to plan Iran services from Najaf in October; INA carries the airline’s statement.
5. October 2026 (planned): Iraqi Airways to resume flights from Najaf after completing regulatory and technical prerequisites.

Implications for travel, diplomacy and aviation

For travellers: the exemption should reopen an Iraqi‑operated route that facilitates religious tourism, medical travel and students’ movements, but passengers will still face a reduced set of carrier choices because Iranian airlines remain largely excluded.

For diplomacy: the episode underscores the leverage that US secondary‑sanctions policy can exert on third‑country aviation systems and the balancing act faced by governments such as Baghdad, which must weigh legal exposure to sanctions against domestic political pressures and regional ties.

For the aviation sector: the fragmentation of services and the drop in available seats documented by industry data highlight commercial consequences for airports, ground‑handling firms and carriers in the region. Restoring Iraqi‑operated flights may ease some immediate disruptions but will not restore pre‑sanctions market depth unless broader permissions are granted.

Unresolved questions

• Exact operational start date: Iraqi Airways has not provided a firm first‑flight date, saying flights will begin after regulatory and technical approvals.
• Scope and safeguards of the exemption: reporting says the waiver includes conditions such as passenger screening and information‑sharing designed to address US concerns, but full details of those measures have not been published.
• Future of Iranian carriers in Iraq: the waiver to Iraqi Airways leaves open whether and when Iranian airlines will be allowed to resume operations to Iraqi airports.
• Potential commercial losses: claims about the economic impact on regions such as Basra and numbers for affected passengers and financial losses were reported by some Iraqi figures but have not been independently verified.

Bottom line

Iraq has obtained a narrowly framed US exemption that allows its national carrier to plan flights to Iran from Najaf starting in October. The measure relieves some immediate pressure on pilgrims, patients and other travellers but stops short of a full restoration of Iran–Iraq air connectivity. The situation highlights the interaction between sanctions policy and regional transport links and leaves several operational and political questions outstanding.