Government vs Company

US fines Air France and KLM $425,000 over Iraq flights sold under Delta’s code

The Transportation Department says US airspace rules applied because the flights carried Delta flight numbers. The two European carriers argue air traffic control forced them lower.

A blue KLM Boeing 777-300ER on a wet runway with spray behind its wheels
A KLM Boeing 777 at Amsterdam Schiphol; the fine covers KLM long-haul flights that carried Delta’s code over Iraq between 2022 and 2025. Photo: Robbie Klinkenberg / Wikimedia Commons, CC BY-SA 4.0

In brief

  • The US Department of Transportation fined Air France $105,000 and KLM $320,000 for flights through prohibited Iraqi airspace.
  • US rules applied because the flights carried Delta Air Lines’ DL code under the carriers’ codeshare.
  • The flights descended below 32,000 feet in the Baghdad flight information region, the floor the FAA sets for US operators.
  • Both airlines say the descents were ordered by air traffic control and should count as emergencies, but they settled to avoid litigation.

Washington has penalised two European flag carriers for breaking an American airspace ban that only applied to them because of a partner’s flight numbers. The US Department of Transportation fined Air France and KLM a combined $425,000 on 23 October over flights through prohibited airspace above Iraq, FlightGlobal reported.

The flights were codeshares with Delta Air Lines and carried its DL designator. That brought them under Federal Aviation Administration rules that bar US operators from flying below 32,000 feet over Iraq, rules the two airlines would not otherwise have to follow, according to Paddle Your Own Kanoo.

What the regulator found

KLM was fined $320,000 for more than 100 flights between January 2022 and May 2025 that had to fly below the limit because of air traffic control restrictions. Air France was fined $105,000 for 30 flights between April 2022 and November 2025 on which controllers ordered descents below 32,000 feet. Some outlets put the Air France figure at more than 30.

Under the consent orders, the airlines must pay $265,000 between them. The remaining amounts fall due only if either carrier breaks the rules again within a year. The FAA has kept US airlines above 32,000 feet over Iraq since October 2020, after setting a 26,000-foot floor in 2018.

The airlines’ defence

Both carriers argued that the descents were forced on them by controllers and should qualify for the emergency-situation exemption, given the safety risk of refusing an air traffic control instruction. They accepted the consent orders to avoid a court fight rather than conceding the point.

A pattern of codeshare cases

The department has used the same reasoning before. Emirates paid $1.8m in 2024 over Iraqi overflights operated while codesharing with JetBlue, a penalty that also covered flights over Iran. Virgin Atlantic was fined $1.05m for Delta codeshare flights through Iraqi airspace, despite arguing that the UK regulator had lifted its own ban.

For foreign airlines, a US partner’s flight number now brings US airspace rules along with it.

What to watch

  • Whether foreign carriers drop US partner codes from routes that cross restricted airspace.
  • Further enforcement against other Delta or United partners flying similar routes.

How we got here

  1. Oct 2020FAA bars US operators from Iraqi airspace below 32,000 feet
  2. Jan 2022–Nov 2025Air France and KLM codeshare flights descend below the limit
  3. 23 Oct 2026US DOT announces $425,000 in fines

Sources

TradeWar wrote this article from the public reporting and documents below. Figures and statements are attributed in the text.

  1. US DOT fines Air France and KLM for flights through prohibited airspace under Delta’s code FlightGlobal, 23 Oct 2026
  2. The Department of Transportation Has Slapped Two More Foreign Airlines With Big Fines For Flying in Banned Airspace Paddle Your Own Kanoo, 24 Oct 2026