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US fines Air France, KLM over flights in prohibited Iraqi airspace - Finance news and analysis from Global Banking & Finance Review
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US fines Air France, KLM over flights in prohibited Iraqi airspace

Published by Global Banking & Finance Review

Posted on October 23, 2026

2 min read

· Last updated: October 23, 2026

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US Fines Air France and KLM $425,000 Over Violations in Iraqi Airspace

Details of the US Transportation Department Fine

By David Shepardson

Background of the Violations

WASHINGTON, Oct 23 (Reuters) - The US Transportation Department said Friday it was fining Air France and KLM a total of $425,000 for operating dozens of flights in Iraqi airspace below a minimum altitude intended to protect them from threats from the ground.

FAA Regulations and Restrictions

The Federal Aviation Administration prohibits flight operations by US operators in foreign-managed airspace where conflict, militant activity, or heightened tensions can threaten the safety of flights. Foreign airlines operating flights with a US airline’s code must abide by these prohibitions, and KLM and Air France both operate flights with Delta codes.

An FAA order in place for more than six years bars flights over Iraq at altitudes below 32,000 feet.

Details of the Offenses

Air France operated more than 30 flights and KLM more than 100 flights carrying the Delta code through FAA-prohibited airspace over Iraq between early 2022 and 2025, USDOT said.

Penalty Structure

USDOT said the airlines must pay $265,000 of the $425,000 within 60 days and the remainder of the fines will be payable if there are any other violations within one year.

Airlines’ Response and Explanations

Commitment to Compliance

The airlines did not immediately comment but Air France and KLM told USDOT they were fully committed to adhering to regulatory requirements at all times and took the issue extremely seriously.

Air Traffic Control Instructions

Both airlines said that due to conflicting traffic, local air traffic controllers had directly instructed their flight crews to descend or refused to allow them to ascend.

Emergency Situations Exemption

Both said they believe the flights should have fallen under the “emergency situations” exemption given the safety implications of refusing an air traffic control order.

Delta’s Position

Delta declined to comment.

(Reporting by David ShepardsonEditing by Nick ZieminskiEditing by Peter Graff)

Key Takeaways

  • Air France flew over 30 and KLM over 100 flights below FL320 in Baghdad FIR, violating FAA code‑share rules tied to Delta’s code‑sharing rights.
  • SFAR No. 77 prohibits flights below FL320 over Baghdad FIR for U.S. operators and those carrying U.S. codes; exemptions exist for emergencies or FAA‑approved government contracts.
  • $265,000 must be paid within 60 days; the rest is conditional if violations recur within a year. Local ATC instructions and emergency claims are disputed by the airlines as justifications.

Frequently Asked Questions

Why did the US fine Air France and KLM?
The US fined Air France and KLM for operating flights in Iraqi airspace below a minimum altitude mandated by FAA regulations, intended to protect from ground threats.
How much were Air France and KLM fined by the US?
They were fined a total of $425,000 by the US Transportation Department.
What FAA regulation was violated by Air France and KLM?
Both airlines operated flights below 32,000 feet in Iraqi airspace, violating an FAA order for altitude restrictions over Iraq.
What reason did Air France and KLM give for their actions?
The airlines stated that local air traffic controllers instructed their flight crews to descend or prevented climbs due to conflicting traffic.
Will the airlines have to pay the full fine immediately?
They must pay $265,000 within 60 days; the remaining $160,000 is only payable if another violation occurs within a year.

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