Flight Travel News: US Fines Air France and KLM $425,000 Over Iraq Airspace Flights

AIRLINE NEWS | AVIATION REGULATION | OCTOBER 26, 2026

WASHINGTON, October 26, 2026 — The US Department of Transportation (DOT) has imposed a combined $425,000 in penalties on Air France and KLM after finding that the European airlines operated flights carrying Delta Air Lines' code below the minimum altitude permitted under US restrictions affecting Iraqi airspace.

The enforcement action, announced on October 23, concerns flights operated between 2022 and 2025 in the Baghdad Flight Information Region. The restrictions were introduced because of security risks associated with regional conflict and potential threats to civil aviation.

The case highlights the regulatory responsibilities airlines face when operating codeshare services, particularly when flights carry the designator code of a US airline.

How Much Were the Airlines Fined?

The penalties were divided between the two carriers:

Air France: $105,000 for more than 30 flights carrying Delta's code between April 2022 and November 2025.
KLM: $320,000 for more than 100 flights carrying Delta's code between January 2022 and May 2025.

According to the US Department of Transportation, the airlines must pay a combined $265,000 within 60 days. The remaining $160,000 is conditionally suspended and may become payable if the carriers commit further violations within one year, subject to the terms of the respective orders.

Why Were the Flights Restricted?

The Federal Aviation Administration (FAA) prohibits certain US aviation operations in the Baghdad Flight Information Region below Flight Level 320, equivalent to approximately 32,000 feet.

The restriction is intended to reduce risks to civil aircraft associated with conflict, militant activity and other security threats in the region. The rule also applies to qualifying flights operated by foreign airlines under the designator code of a US carrier.

Because the affected Air France and KLM flights carried Delta Air Lines' code, the US authorities determined that the airlines were required to comply with the applicable restrictions.

The measure should not be interpreted as a blanket prohibition on all flights over Iraq. It concerns specified operations and altitude restrictions under the applicable US rules.

Air France and KLM Raised Air Traffic Control Issues

In their responses to the US authorities, both airlines argued that local air traffic controllers had instructed their flight crews to descend or had prevented them from climbing because of conflicting traffic.

The carriers maintained that the circumstances should qualify for an emergency exemption, given the safety implications of refusing an air traffic control instruction while airborne.

However, the Department of Transportation concluded that the airlines should have taken preventive measures to avoid the violations. These could include adjusting flight routes or removing Delta's code from flights that could not comply with the applicable restrictions.

The dispute therefore concerns not only flight operations but also the responsibilities of airlines managing codeshare arrangements and regulatory compliance.

What Is a Codeshare Flight?

A codeshare agreement allows one airline to market seats on a flight operated by another carrier. The operating airline flies the aircraft, while the partner airline can sell tickets using its own flight number.

These agreements help airlines expand their networks and offer passengers more connecting options without operating every flight themselves.

However, codeshare arrangements also create compliance obligations. In this case, the US authorities said foreign carriers operating flights under a US airline's code must observe the relevant FAA flight restrictions.

What Does This Mean for Passengers?

The penalties relate to past operations and do not, by themselves, announce the cancellation of current Air France or KLM flights.

Passengers should continue to check their itineraries directly with the relevant airline. Anyone travelling on a codeshare itinerary should also confirm which carrier operates each flight, particularly when an itinerary includes connections through regions affected by security restrictions.

The case also illustrates how airlines must account for airspace restrictions when planning routes, managing operational risks and coordinating with partner carriers.

A Wider Regulatory Message for Airlines

The US action sends a clear message to international airlines that codeshare operations involving US carriers can bring additional regulatory responsibilities.

For airlines operating in or near regions affected by conflict, compliance requires more than planning a route at the correct altitude. Carriers must also consider what happens when air traffic control instructions, traffic conflicts or changing operational conditions make the planned profile impossible to maintain.

The restrictions affecting the Baghdad Flight Information Region remain in force through October 26, 2027, under the relevant US rule, unless changed by subsequent regulatory action.

Official Sources

Flight Travel News | Based on US Department of Transportation enforcement documents and published reporting. The airlines' stated explanations and the regulator's findings are presented separately.