After restarting flights to London only last month, Iraqi Airways has now dropped the route.
An ongoing dispute with Kuwait has meant that Iraqi Airways plans to offer a twice-weekly service between London and Baghdad have had to be scrapped, reports say.
The UK representative of Iraqi Airways, IKB Travel, was unable to confirm the situation, but is not booking flights with Iraqi Airways currently.
When flight IA 237 arrived at Gatwick Airport on April 26, it was the first time in 20 years that the 75-year old airline touched down on British soil. There have been no further flights.
The director general of Iraqi Airways, Kifah Hassan Jabbar, was arrested when he arrived in the UK, and the aircraft impounded. He has since been released and will shortly fly back to Iraq.
Kuwait and Iraq are involved in ongoing disputes over reparations from Saddam Hussein's invasion of Kuwait in 1990, when Iraq is alleged to have seized Kuwaiti aircraft and parts.
Staff at Iraqi Airways held a demonstration for his release earlier this month, calling for Kuwait to "resolve differences amicably without escalation".
Jabbar has been quoted as considering dissolving the airline in a bid to resolve the issue.
www.iraqiairways.co.uk