State-owned Iraqi Airways has been dissolved by the Iraq government, which declared the airline bankrupt from a financial dispute with Kuwait.
According to the Associated Press, the airline has ceased all operations.
The Iraq government has plans to replace the 75-year-old airline with two or three new companies and resume operations.
The dispute with Kuwait dates back to Saddam Hussein's invasion of Kuwait in 1990, when Iraq is alleged to have stolen aircraft and parts from its neighbouring country. Kuwait is now demanding compensation.
The dispute saw the director general of Iraqi Airways, Kifah Hassan Jabbar, arrested when he arrived in the UK last month on the airline's first flight to London in 20 years, and the aircraft impounded. Hassan has since been released.