The U.S. Department of Transportation has fined Air France and KLM a combined $425,000 for flying more than 130 Delta Air Lines-coded trips through restricted Iraqi airspace, CNBC reported.
Air France and KLM are part of the same parent company, the Air France-KLM Group.
The Federal Aviation Administration treats 32,000 feet as the safety line for aircraft flying over the Baghdad Flight Information Region, and the fined airlines flew below that altitude on multiple flights.
The penalty was announced on Oct. 23, and the fines should not be a problem for airlines of this size. However, the airlines were ordered to pay part of the fine upfront within 60 days.
Why the DOT came down on two Delta Air Lines European partners
The FAA set a 32,000-foot safety line for aircraft in the area to keep civilian aircraft out of range of ground-based threats.
Between January 2022 and May 2025, KLM operated more than 100 Delta-coded flights below that line. Air France also operated more than 30 such flights between April 2022 and November 2025, Reuters reported.
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In response to the fines, the airlines told regulators their pilots descended only because local air traffic controllers ordered them to avoid nearby planes. They called the descents emergency situations.
However, their defense was not accepted, and the Department of Transportation said the ruling reflects its push to hold foreign carriers accountable when they operate under an American airline’s code.
“Under the Trump Administration, if you fly carrying a U.S. code, following our safety rules is not optional,” said U.S. Secretary of Transportation Sean Duffy.
“We will not hesitate to hold accountable any airline for failing to comply with agency regulations. Passenger safety comes first — no exceptions.”
How codeshare agreements pull foreign airlines into U.S. rules
Although KLM and Air France are foreign airlines, they have a codeshare agreement with Delta. A codeshare is an arrangement where one airline sells tickets on another airline’s flight using its own two-letter code.
In simple terms, if you book a Delta ticket from New York to Mumbai and the Paris to Mumbai leg is run by Air France, that flight carries the Delta “DL” code, even though an Air France crew is flying the plane.
The FAA requires foreign carriers to follow U.S. flight rules whenever a flight carries a U.S. code. American safety standards apply through the ticket code, which means it also applies to any carrier sharing that code, Simple Flying reported.
What the fine means for Delta and Air France-KLM shareholders
The two carriers are required to pay an initial combined amount of $265,000.
If neither of them breaks the rule again within 12 months, the remaining $160,000 will be waived, Reuters reported.
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The $425,000 fine will not show up in any earnings report, but it carries an important regulatory message to shareholders.
From my analysis, it seems that codeshare partners now need to monitor each other’s route choices in real time. That means if you hold airline stocks, you should start considering the risks of shared-booking deals.
What travelers should note from this
There will be no cancellations or delays based on this ruling. Ticket prices should also not be affected, since the fine is not a large amount for global airlines. The ruling is simply a form of national security and aviation safety enforcement.
There’s a lot of tension in the Middle East right now, and the 32,000-foot safety floor is there to keep civilians safely above the range of potential ground threats.
The fine serves as a reminder to citizens that their safety is a priority and a warning to foreign airlines with U.S. flight codes to follow the FAA’s rules.
