Aviation insurers have also withdrawn coverage, leaving carriers exposed to greater financial risk
Iranian airlines face mounting operational challenges as the threat of US secondary sanctions pressures airports, fuel suppliers, and aviation service providers worldwide, leading some countries to cancel flights to and from Iran as of September 2026. The sanctions target entities that assist Iran's aviation sector, including those providing maintenance, fuel, or insurance, creating a ripple effect that disrupts flight schedules and increases costs for carriers like Mahan Air, which has been accused of supporting activities that trigger secondary penalties. How Sanctions Are Disrupting Flight Operations Airports in several regions have begun refusing to service Iranian aircraft due to fears of losing access to US financial systems, while fuel suppliers are tightening credit terms or halting deliveries altogether. This has forced Iranian airlines to reroute flights or operate with reduced frequency, particularly on long-haul routes where reliable fuel access is critical.
Aviation insurers have also withdrawn coverage, leaving carriers exposed to greater financial risk. What Are the Risks for Airlines Continuing to Fly? Companies that continue to provide services to Iranian airlines risk being cut off from the US dollar system and facing penalties that could include asset freezes or exclusion from international banking networks. Even indirect support, such as leasing aircraft or supplying spare parts, can trigger secondary sanctions under current US policy. As a result, many global aviation firms are choosing compliance over commerce, further isolating Iran's air travel network. Frequently Asked Questions What are secondary US sanctions? Secondary sanctions target non-US entities that engage in specific transactions with sanctioned countries like Iran, threatening them with loss of access to US markets and financial systems if they continue such activities. Why are airlines canceling flights to Iran?
Airlines and service providers are canceling flights due to the risk of triggering secondary sanctions, which could jeopardize their ability to operate internationally and access essential financial services. Is Mahan Air the only airline affected? While Mahan Air has been publicly cited in sanctions-related accusations, other Iranian carriers face similar pressures as the broader aviation ecosystem servicing Iran comes under scrutiny from global compliance efforts.