Several Iraqi travel agencies said on Tuesday the U.S. ban on Iranian airlines could severely disrupt their business, forcing them to explore alternatives, such as hours-long land routes to Iran.
U.S. Treasury Secretary Scott Bessent said Monday that Iranian airlines will "shut down" on September 23, after Washington, earlier this month, said it imposed sanctions on "all remaining Iranian airlines" that had yet to face such penalties.
Iraq is one of the top destinations for Iranian airlines, mainly transporting Iraqi pilgrims to Iran's holy cities or Iranians to sacred sites in Iraq.
The Iraqi government has not yet announced plans to enforce the ban, but two sources told AFP on Monday that Baghdad will comply.
The sources initially said the decision would take effect on Tuesday, but FlightRadar data showed that flights remain scheduled, with most arrivals and departures at Najaf airport.
Several travel agencies said they are considering switching to land routes, especially given that Iraqi airlines stopped flying to Iran at the start of the Middle East war in February.
They said panicked clients are calling for updates, but with no official announcement yet, agencies have few answers to offer.
In Najaf, travel agent Haidar Shamaa said "most travel companies in the city depend on booking flights" to Iranian airports.
Although land routes to Iran are available, they can prove difficult for many, especially sick Iraqis seeking treatment in Iran and the elderly, Shamaa and other travel agents said.
Instead of a flight lasting only a few hours, passengers headed to the holy city of Qom would have to take a journey of more than 12 hours from the border.
Other main destinations are even farther.
Mustafa Majid, from another Najaf travel agency, said he expects major losses from the ban, as his company deals exclusively with airlines rather than land travel providers.
Amir Fouadi, a travel agent in the city of Diwaniyah, said that his company has cancelled some trips and replaced others with land trips.
"Any change puts us under pressure to find alternative solutions," because trips are booked as full packages with accommodation and tour programs.
A travel agent in Baghdad said that despite not receiving an official notice enforcing the ban "we are no longer booking flights".