Iran’s aviation industry is facing growing disruption after the United States expanded sanctions against the country’s airlines, with analysts warning that the measures could have a significant financial impact on carriers already operating under severe restrictions.
The US Treasury Department announced on September 8 that it had sanctioned 27 Iranian airlines as part of a wider campaign targeting Iran’s aviation sector. Washington has accused Iranian airlines of supporting the movement of weapons, personnel and other goods.
The measures have been followed by restrictions from other countries. The United Arab Emirates suspended flights operated by Iranian airlines to and from the country on September 24, effective until further notice. The UAE’s General Civil Aviation Authority said the decision was made in light of the US ban on Iranian airlines using airports in various countries.
The restrictions are also affecting international routes and services available to Iranian carriers. Reuters reported that Iranian flights to Gulf destinations, including Dubai, appeared to have been cancelled after a US deadline passed for companies to stop providing services to Iranian airlines.
Saj Ahmad, chief analyst at London-based StrategicAero Research, said the US measures went beyond political signalling and would have a material effect on Iranian airlines.
Iranian carriers are now largely restricted to a limited group of destinations, including Iraq, India, Pakistan, China and Russia, according to the supplied analysis.
US Treasury Secretary Scott Bessent warned earlier in the week that Iranian airlines would face major difficulties operating internationally from September 23. He said companies providing fuel, landing services or ticketing support to Iranian carriers could face exclusion from the US dollar financial system.
The restrictions are also putting pressure on passengers. Airfares in Iran have risen as international access for Iranian airlines becomes more limited, while carriers face difficulties obtaining services needed to operate flights abroad.
Analysts have also highlighted the impact of restrictions on Iran’s use of its airspace. Iran has historically collected fees from international airlines flying through its airspace, generating more than $300 million a year according to the analysis supplied.
Other countries have also introduced restrictions affecting Iranian aviation. Flights between Iran and Iraq and between Iran and Oman were reported cancelled after the US measures took effect.
The broader restrictions are leaving Iranian airlines with fewer international routes and increasing operational challenges. The US Treasury has said its sanctions are intended to isolate Iran’s aviation sector from international financial and commercial networks.
The UAE’s suspension will remain in place until further notice, with the GCAA saying it will continue to update authorities and the public as developments occur.
