Iraqi airline Fly Baghdad has been removed from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons (SDN) List after completing a two-year company-wide compliance and governance overhaul.

The delisting was published by OFAC on August 5, 2026, and took effect immediately. The move ends US blocking sanctions against the airline, allowing individuals and businesses in the United States and elsewhere to conduct transactions with Fly Baghdad in the ordinary course of business. Restrictions on aircraft previously classified as blocked property have also been lifted.

Fly Baghdad said the decision follows sustained efforts to improve its governance, compliance controls, transparency and corporate practices in line with international standards.

“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. He said the airline had focused on strengthening governance, controls and transparency rather than simply seeking recognition.

With the sanctions lifted, Fly Baghdad said it is ready to resume normal commercial dealings with banks, payment providers, insurers and reinsurers, aircraft lessors, maintenance companies, fuel suppliers, distribution systems, travel agencies and other aviation partners.

The airline said it intends to rebuild and expand long-term relationships with financial institutions and aviation companies globally. It added that counterparties can independently confirm its removal from the SDN List through OFAC records and related US government announcements.

Fly Baghdad also clarified its ownership and management structure. The airline said it is owned by Founder and Chairman Ahmad Asad and that no individual who is currently or was previously designated on the SDN List has held an ownership interest in the company.

The carrier further said former Chief Executive Officer Basheer Al-Shabbani never held equity in Fly Baghdad and has no role in its ownership, management, governance or operations. OFAC’s August 5 action amended Al-Shabbani’s SDN entry to remove references linking him to Fly Baghdad.

“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. He added that the commitment is now incorporated into the company’s governance, staffing and operations.

Asad also acknowledged the legal teams that supported the airline throughout the process, including Eric H. Blinderman and Raid Juhi AlSaedi of the Law Offices of Eric H. Blinderman, as well as Reid Whitten and Scott Maberry of Sheppard Mullin.

Fly Baghdad said tickets remain available through its website, sales offices, call centre and authorised travel agents, while all existing bookings will be honoured.

The airline is now working with aviation authorities, airports and industry partners to restore and expand its network through a phased approach. Details of updated schedules, destinations and booking arrangements will be released through its official communication channels.

“Our priority now is simple: reconnect people, support commerce, and deliver safe, reliable, and affordable air travel to every community we serve,” Abdulrahman said.

He also praised Fly Baghdad’s pilots, cabin crew, engineers, technicians and ground staff for maintaining professionalism and resilience throughout the compliance transformation.

“Our focus now shifts from transformation to growth,” Abdulrahman said, adding that the airline is ready to reconnect with passengers, commercial partners and the wider global aviation community.

Source: ZAWYA

Thai Airways International Public Company Limited (THAI) will operate 66 domestic and international routes under its winter 2026/27 timetable, covering key destinations across Europe, Australia and Asia.

The seasonal schedule will run from October 25, 2026, to March 27, 2027, aligning with Thailand’s peak tourism period.

THAI announced the programme on September 2, 2026, saying it had increased selected services and flight frequencies in response to passenger bookings and travel demand. The airline is also using the winter schedule to strengthen its network connectivity through Bangkok.

The carrier’s winter network will include 15 routes to Europe and Australia, 43 routes across Asia and eight domestic routes.

Source: QCAA

Saudi Arabia’s low-cost airline flyadeal, part of Saudia Group, has expanded its operations in Pakistan with the launch of a new direct route linking Madinah with Karachi.

The airline will operate two flights per week on the new route, deploying Airbus A320neo aircraft equipped with 186 Economy Class seats.

With the addition of Madinah, Karachi is now connected by flyadeal to three Saudi cities, following the airline’s existing services from Jeddah and Riyadh.

The new route also takes flyadeal’s total number of destinations in Pakistan to seven, highlighting the carrier’s continued expansion in the market.

Abdulaziz Bahri, Chief Operating Officer of flyadeal, said the launch demonstrates the airline’s growing commitment to Pakistan, where demand has continued to strengthen across its international network.

Bahri noted that flyadeal began serving Pakistan with two routes last year and has since expanded to seven. He said the rapid growth reflects the strong economic, cultural and people-to-people ties between Saudi Arabia and Pakistan, alongside growing demand for the airline’s modern, efficient, friendly and affordable services.

Source: TradeArabia

Etihad Airways and Abu Dhabi-based AI technology company ROX have agreed to explore potential areas of collaboration, with the partnership initially centred on ROX’s Africa Grand Tour S2.

Under the memorandum of understanding, Etihad’s brand will appear on the vehicle used for the overland expedition. The companies will also consider joint content, storytelling and marketing initiatives linked to the tour, creating an opportunity to connect air travel with ground mobility and destination experiences across Africa.

ROX’s Africa Grand Tour S2 is an extended overland expedition across the continent featuring the ROX ADAMAS. The journey is intended to demonstrate the vehicle’s capabilities across a wide range of destinations and driving conditions while generating content around travel, exploration and mobility.

The initiative will serve as an initial platform for Etihad and ROX to explore ways of combining air connectivity, ground transportation and destination experiences through storytelling and content.

The MoU was signed in Abu Dhabi during the inauguration of ROX’s Advanced AI Manufacturing Centre. Beyond the Africa Grand Tour, the agreement provides a broader framework for the two companies to examine potential cooperation in intelligent mobility, technology, lifestyle innovation, future travel experiences and destination-focused mobility.

Etihad Airways CEO Antonoaldo Neves said the Africa Grand Tour offers an opportunity to bring together travel, destinations, mobility and storytelling.

“From Abu Dhabi, Etihad connects people to a growing global network, and we are always interested in new ideas that can enhance how people experience the places they travel to,” Neves said. He added that the MoU would allow both sides to assess potential areas of alignment and the prospects for future collaboration.

Yan Feng, CEO of ROX, said the company was established with the aim of developing intelligent mobility solutions that connect people, technology and destinations.

He described the Africa Grand Tour as a starting point for exploring broader opportunities in intelligent mobility, travel and lifestyle, adding that ROX and Etihad could complement each other by connecting land-based exploration with air travel.

Both companies are headquartered in Abu Dhabi and see potential for their respective technologies, capabilities and brands to work together, beginning with the Africa Grand Tour S2.

Source: WAM

Air Arabia is expanding its services to Thailand by adding a fourth daily non-stop flight between Sharjah and Bangkok, strengthening air connectivity between the UAE and Southeast Asia.

The additional frequency will begin on October 25, 2026, increasing the airline’s Sharjah-Bangkok operations to 28 non-stop flights per week and giving passengers more travel options.

The expanded Bangkok schedule complements Air Arabia’s existing 21 weekly non-stop flights between Sharjah and Phuket, strengthening its presence in two of Thailand’s major destinations.

Adel Al Ali, Group Chief Executive Officer of Air Arabia, said the increased Bangkok service reflects the importance of Thailand to the airline’s network and growing demand for affordable travel between the UAE and Southeast Asia.

He said increasing Bangkok operations to four daily flights, alongside the existing Phuket service, would give passengers greater flexibility while enhancing Sharjah’s connectivity with Thailand.

With the new frequency, Air Arabia will operate a combined 49 non-stop weekly flights between Sharjah and Bangkok and Phuket, making Thailand one of its key destinations in Southeast Asia.

The expanded schedule will also provide passengers travelling from the UAE with more flexibility when planning direct journeys from Sharjah.

Source: ZAWYA

Southeast Asia’s low-cost airlines are expecting some relief from the fuel shock triggered by the Middle East conflict but continue to face a difficult second half of 2026 as high costs squeeze margins and household financial pressures weigh on travel demand.

Recent quarterly results from Malaysia’s AirAsia, Singapore Airlines’ low-cost subsidiary Scoot and the Philippines’ Cebu Pacific highlighted the challenge. Efforts to offset higher fuel expenses through increased fares were insufficient, with AirAsia and Cebu Pacific reporting net losses and Scoot’s operating loss nearly doubling from a year earlier.

The results underline a key vulnerability in the low-cost airline model. Fuel represents a larger portion of expenses for budget carriers than for many full-service airlines, while their price-sensitive customers limit how much fares can be increased without risking weaker demand.

Currency movements have added to the strain. The Malaysian ringgit, Thai baht, Indonesian rupiah and Philippine peso all weakened against the US dollar, raising the cost of fuel and aircraft leases, which are generally denominated in dollars.

“The second quarter was the most challenging operating environment Cebu Pacific has faced post-pandemic,” CEO Mike Szucs said during an earnings call this month.

Cebu Pacific’s fuel costs more than doubled from a year earlier, another company executive said, with the impact intensified by an 8% depreciation in the peso. The airline has hedged about 30% of its third-quarter fuel requirements at less than $120 per barrel to provide some protection against further price volatility.

Full-service carriers have been in a stronger position because of continued demand from premium travellers following the pandemic, according to Nathan Gee, head of Asia-Pacific transportation research at BofA Global Research. Budget airlines have benefited less from that trend because of their simpler service offerings and smaller loyalty programmes, he said.

AirAsia is preparing for a challenging third quarter, traditionally the weakest period for regional travel. The airline plans to reduce seat capacity by 20% to 25% year on year, return 25 older aircraft to lessors during 2026 and suspend its Sydney-Kuala Lumpur service from October as part of a wider network adjustment.

CEO Bo Lingam said AirAsia was taking a “deliberate, tactical approach” to protect profitability after average jet fuel prices reached $183 per barrel in the second quarter. The airline also recorded a net foreign exchange loss of approximately $82 million.

Lingam said AirAsia expects to restore capacity to pre-war levels during the fourth quarter, with forward bookings broadly tracking last year’s levels.

Scoot, meanwhile, has continued expanding capacity as passenger demand remains strong. However, its passenger unit costs increased 21.7% in the three months to June. As a result, the airline’s operating loss widened to S$32 million ($25.2 million), from S$17 million a year earlier, despite higher fares and fuel-hedging protection through parent company Singapore Airlines.

The higher costs pushed Scoot’s break-even load factor to 100%. That means the carrier would have needed every seat occupied to cover passenger operating expenses, compared with an actual load factor of 90.6%.

Scoot Chief Commercial Officer Calvin Chan said the airline’s fare increases had not fully compensated for higher fuel prices, while continued conflict in the Middle East was adding uncertainty to the outlook.

Lower fuel prices could provide immediate relief to airlines, but they could also encourage carriers to restore capacity and compete more aggressively on fares, Gee said.

He added that intra-Asian routes could face particular pressure because supplies of narrowbody aircraft are recovering faster than those of widebody aircraft. Additional capacity could therefore emerge at a time when passenger demand is weakening.

Independent aviation analyst Brendan Sobie also warned that tighter household budgets could reduce travel among Southeast Asia’s middle class during the remainder of the year, including the crucial peak travel season.

“The short-term outlook is rather bleak,” Sobie said, adding that although there is potential for improvement in the fourth quarter, it remains too early to assess the strength or timing of any recovery.

Source: QCAA