The Violations
The US Department of Transportation has ordered Air France and KLM to pay a combined $425,000 for operating flights below the permitted altitude over Iraq. Between 2022 and 2025, Air France conducted more than 30 flights through restricted airspace in the Baghdad Flight Information Region whilst carrying Delta Air Lines' flight code, according to the DOT. KLM operated more than one hundred such flights during the same period.
The penalties stem from breaches of Federal Aviation Administration rules that prohibit US carriers from flying below 32,000 feet in certain foreign airspaces where conflict or militant activity poses a risk to civil aviation. Although both airlines are European, the flights in question carried Delta's code under a codeshare arrangement, bringing them within the scope of US regulations. Air France will pay $105,000; KLM's fine is set at $320,000.
The Defence
Both airlines have challenged the circumstances behind the violations. They told the DOT that they had planned to fly above the 32,000-foot threshold but were either instructed by local air traffic controllers to descend or denied permission to climb due to conflicting traffic. According to KLM, neither passengers nor crew were adversely affected, and the situations should qualify for an emergency exemption given the safety implications of ignoring ATC instructions.
The DOT rejected that argument. The department said the fines were imposed not because pilots followed controller instructions, but because the airlines failed to anticipate a recurring problem and take preventive action. Possible measures included rerouting flights or removing Delta's code from services operating through the affected airspace.
What the Regulator Said
US Transportation Secretary Sean P. Duffy emphasised that compliance with US aviation safety regulations is mandatory for any airline operating under an American carrier's code. "We will not hesitate to hold accountable any airline for failing to comply with agency regulations. Passenger safety comes first, no exceptions," he said.
The DOT's Office of Aviation Consumer Protection conducted the investigation that uncovered the breaches. The office found that Air France's violations ran from April 2022 to November 2025, whilst KLM's spanned January 2022 to May 2025.
The Settlement
Both carriers have agreed to settle rather than pursue litigation. Of the $425,000 total, $265,000 is due within sixty days. The remaining $160,000 will only become payable if either airline breaches the terms of the order within one year. Both have stated their commitment to complying with aviation regulations going forward.
The FAA's restrictions on flights over Iraq were amended and extended in October 2020 and remain in force until 26 October 2027. The investigation also revealed that Air France had operated several Delta codeshare flights through restricted Somali airspace before October 2022, but the DOT chose not to pursue that matter after the FAA amended its regulations to permit such operations.
The Bigger Picture
The case highlights a tension between international air traffic management and national security mandates. Codeshare agreements allow airlines to extend their networks and offer passengers more connections, but they also extend regulatory reach. A flight operated by a European carrier can fall under US rules if it carries an American airline's code, even if the aircraft never touches US soil.
For airlines, the calculus is not straightforward. Following local ATC instructions is a core principle of aviation safety, yet doing so can put carriers in breach of regulations imposed by a distant authority. The DOT's position is that airlines operating under US codes must plan routes that avoid such conflicts, even if that means longer flight times or withdrawing from certain codeshare arrangements.
The fines are modest by industry standards, but the precedent is clear. As geopolitical risks reshape flight paths and regulatory requirements multiply, airlines face a growing burden of compliance that extends well beyond their home jurisdictions.
