Iranian Airlines Expand Trips to Iraq Despite U.S. Sanctions

Operation Economic Outcast has disrupted Iranian aviation, prompting major regional hubs, including the United Arab Emirates and Oman, to suspend flights by Iranian carriers for fear of facing U.S. sanctions. While Iraq followed suit on September 25, mounting domestic pressure, including from Iran-backed militias and their political allies, pushed Baghdad to negotiate an exemption with Washington. On October 9, Najaf Airport’s schedule included 14 flights by Iranian carriers.

Shortly after Treasury Secretary Scott Bessent declared late last month that “all the Iranian airlines will be shut down around the world,” flights between Iraq and Iran were suspended. Earlier in September, Treasury sanctioned all undesignated Iranian airlines — some carriers had been designated in previous years under counterterrorism authorities.

An exemption followed within days of the suspension. On September 28, Treasury reportedly issued a narrow license allowing Iraqi Airways to operate flights between Iran and the Iraqi city of Najaf, a major Shiite pilgrimage destination, until October 28, just for Iranian pilgrims. Then Baghdad announced on October 2 that Iranian airlines would be permitted to operate up to 40 daily flights to and from Najaf with U.S. approval — a much broader exemption than what was reported. Washington has not commented, leaving unclear the actual extent of the license. The only carrier Baghdad prohibited was Mahan Air, one of four airlines designated for supporting the Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF). But that is a minimal restriction. The continued operation of Iranian flights, especially by designated airlines, threatens to weaken Operation Economic Outcast.

At Least 10 Iranian Airlines Resumed Flights Between Najaf and Iran

A review of Najaf International Airport’s daily flight schedules from October 4, when flights from Iran resumed, through October 9 identified 75 scheduled arrivals from Iranian airports, including Tehran, Mashhad, and Isfahan. Ten U.S.-sanctioned Iranian airlines appeared on the airport’s published arrival lists. Caspian Air, Sepehran Airlines, and Ava Airlines each accounted for 12 scheduled arrivals, followed by Saha Airlines with nine, Zagros Airlines with eight, Iran Air with seven, Meraj Airlines with six, Fly Kish with four, Varesh Airlines with three, and Qeshm Air with two.

Since flights resumed, Iraqi companies have continued to assist sanctioned airlines. Travel agencies advertise daily flights from Iraq to Iran, and the planes receive ground services from the Najaf Airport Administration.

Caspian Air and Meraj Airlines Are on the U.S. Terrorism Blacklist

The U.S. Treasury listed both Caspian Air and Meraj Air as Specially Designated Global Terrorists (SDGTs) in August 2014. Treasury said that Caspian Air “provides support to IRGC elements by transporting personnel, and illicit material, including weapons, from Iran to Syria.” The designation announcement described Meraj Air as “a Government of Iran airline that has been used to ferry illicit cargo, including weapons, from Tehran to the Syrian regime since at least 2013.” In 2018, Treasury sanctioned entities and individuals facilitating Caspian, Meraj, Mahan, and a fourth designated airline that former U.S. Treasury Secretary Steve Mnuchin said provided a “lifeline to the IRGC-QF.”

Washington Should Clarify Whether Iranian Airlines Are Permitted To Fly to Najaf

Treasury targeted Iran’s aviation sector under Operation Economic Outcast to deny the regime a source of revenue and because Tehran uses “commercial” airlines to move fighters, weapons, and money to its proxies. When Treasury granted Iraqi Airways a license to operate between Najaf and Iran, it included restrictions on passengers, luggage, and reporting requirements intended to prevent exploitation of the flights. Any similar provision would be unenforceable for Iranian airlines, which would be unlikely to comply with Treasury rules. Without these limitations, Iranian flights to Iraq are likely to be exploited by Tehran.

The U.S. State Department and Treasury should clarify whether they have approved flights to Iraq by Iranian airlines, and if so, under what guidelines and monitoring mechanisms.

The Iraqi Airways license expires on October 28. Any future permission for Iraq-Iran flights should be exclusive to Iraqi airlines, timebound to accommodate legitimate religious travel focused on holiday pilgrimages, and include reporting on passengers and cargo.

Bridget Toomey is a research analyst at the Foundation for Defense of Democracies (FDD) focusing on Iranian proxies, specifically Iraqi militias and the Houthis. Ahmad Sharawi is a senior research analyst at FDD, focusing on Iranian intervention in Arab affairs and the Levant.  For more analysis from Bridget, Ahmad, and FDD, please subscribe HERE. Follow Bridget on X @BridgetKToomey and Ahmad on X @AhmadA_Sharawi. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.