US Fines Air France and KLM $425,000 Over Delta-Coded Flights in Iraqi Airspace

WASHINGTON, D.C., 23 October 2026 – The US Department of Transportation (DOT) on Friday fined KLM Royal Dutch Airlines $320,000 and Air France $105,000 for operating flights sold under Delta Air Lines’ code through airspace over Iraq that the Federal Aviation Administration (FAA) closes to US operators below 32,000 feet, the department announced.

Both airlines were also ordered to cease and desist from future violations. The combined $425,000 in penalties follows earlier DOT cases over similar codeshare flights, including a $1.05 million fine for Virgin Atlantic in 2023, Paddle Your Own Kanoo notes.

What the DOT found

Investigators from the DOT’s Office of Aviation Consumer Protection found that KLM operated more than 100 flights carrying the Delta code through the prohibited part of the Baghdad Flight Information Region between January 2022 and May 2025. Air France operated more than 30 such flights between April 2022 and November 2025.

“Under the Trump Administration, if you fly carrying a U.S. code, following our safety rules is not optional,” said US Transportation Secretary Sean Duffy. The details are set out in two consent orders, one for Air France and one for KLM, published on 23 October.

Not all of the money is due at once. Paddle Your Own Kanoo, which reviewed the orders, reports that KLM must pay $200,000 and Air France $65,000 now, with the rest payable only if either airline breaks the rules again within a year.

Why a Delta code matters

A codeshare lets one airline sell seats under its own flight number on a flight operated by a partner. Delta, Air France and KLM are all members of the SkyTeam alliance and sell each other’s flights widely. The DOT says that a foreign airline operating a flight with a US airline’s code must follow the FAA’s airspace bans, even though its own government may allow the route.

The penalties were issued against the two operating airlines. The DOT announcement does not accuse Delta, which sold the seats but did not fly the aircraft, of any violation.

The rule over Iraq

The ban is Special Federal Aviation Regulation No. 77, found at 14 CFR 91.1605. It bars US airlines and US commercial operators, among others, from operating in the Baghdad Flight Information Region below Flight Level 320, about 32,000 feet. The FAA amended and extended the rule on 16 October 2020, and it now runs until 26 October 2027.

The rule has one safety valve: in an emergency that requires an immediate decision for the safety of the flight, the captain may deviate from it as far as the emergency requires.

What the airlines say

According to Paddle Your Own Kanoo, both carriers told the DOT that local air traffic controllers had instructed their crews to descend, or refused to let them climb, because of conflicting traffic, and argued that this should count as an emergency under the rule. Both settled through consent orders rather than fight the case. Anadolu Agency also reported the cease-and-desist orders and the penalty amounts.

What it means for passengers

Nothing changes for existing bookings. The case is a reminder, though, that a ticket sold under a US airline’s flight number brings US safety rules onto a European airline’s flight. If you book a KLM or Air France flight under a Delta number, the operating airline is the one flying the plane and making routing decisions, as our codeshare guide explains.

Read more

• What is a codeshare flight? How it works and what it means for you
• Airline alliances explained: Star Alliance, SkyTeam and oneworld
• Fifth freedom flights: how airlines fly between two foreign countries
• Layover vs stopover: the difference on connecting tickets

Sources: US Department of Transportation press release and consent orders for Air France and KLM, 23 October 2026; eCFR, 14 CFR 91.1605; Anadolu Agency, 23 October 2026; Paddle Your Own Kanoo, 24 October 2026.

Featured image: FlyingFuel graphic using a photo of a KLM Boeing 777-300ER departing Amsterdam Schiphol by Nicky Boogaard from Hardinxveld-Giessendam, Netherlands, CC BY 2.0, via Wikimedia Commons.