Fly Baghdad was sanctioned in January 2024 under US counterterrorism laws. US officials also accused Kata’ib Hezbollah of using Fly Baghdad flights to move fighters, weapons and cash to Syria and Lebanon. Fly Baghdad denied the allegations after the sanctions were imposed and said the US decision was based on incorrect information. The two aircraft removed from the sanctions list were Boeing 737s that the Treasury Department had previously identified as blocked property belonging to Fly Baghdad. Fly Baghdad was established in 2014 and operates scheduled passenger services from Iraq to destinations around the Middle East and other parts of the region.