The Department of Transportation fined Société Air France $105,000 and KLM Royal Dutch Airlines $320,000 on Friday, October 23, 2026. The penalties cover Delta-coded flights below an FAA restriction over Iraq. The combined total is $425,000.
The department also ordered both carriers to stop future violations. Its announcement and consent orders detail the enforcement action.
U.S. Transportation Secretary Sean P. Duffy said the rules apply when a flight carries a U.S. 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. Transportation Secretary Sean P. Duffy. “We will not hesitate to hold accountable any airline for failing to comply with agency regulations. Passenger safety comes first—no exceptions.”
The airlines flew more than 130 Delta-coded services below the restricted altitude
The department’s Office of Aviation Consumer Protection investigated flights through the Baghdad Flight Information Region. It found both carriers operated services carrying Delta’s designator code below 32,000 feet.
The French carrier operated more than 30 such flights between April 2022 and November 2025. KLM operated more than 100 between January 2022 and May 2025. Both sets of flights crossed airspace where the FAA restriction barred operations below the specified altitude.
The settlement sets the payment terms. The airlines must pay $265,000 of the $425,000 within 60 days. The other $160,000 becomes payable only if either airline commits a similar violation within one year.
That condition applies to either carrier. The orders also require both to cease and desist from future violations.
The restriction applies to foreign airlines carrying a U.S. carrier’s code
The FAA amended and extended Special Federal Aviation Regulation 77, or SFAR 77, on October 16, 2020. The rule, codified at 14 CFR 91.1605, bars U.S. air carriers and commercial operators from flying below Flight Level 320 in the Baghdad Flight Information Region, also identified as ORBB FIR. The restriction has been extended to October 26, 2027.
The FAA issues flight prohibitions through emergency orders of the FAA Administrator, Notices-to-Air Missions (NOTAMs) and Special Federal Aviation Regulations. The restrictions are intended to reduce the risk of aircraft facing threats from the ground.
A codeshare lets one airline place its designator code on another airline’s flight and sell tickets for that service. Delta did not operate the flights in the orders. Its code appeared on services operated by the two SkyTeam partners, and Delta sold tickets for those flights.
Department conditions prohibit foreign air carriers from carrying a U.S. airline’s code in airspace where the FAA bars U.S. operators and airmen from flying. The condition appears in an airline’s statement of authorization, extending the flight prohibitions to foreign carriers when they operate under a U.S. carrier code.
The carriers say air traffic control directed the altitude changes
The airlines told the department they were “fully committed to adhering to regulatory requirements at all times and took the issue extremely seriously.” They said local controllers directed crews to descend or refused to let them climb because of conflicting traffic.
Both carriers argued that following those directions should qualify for the “emergency situations” exemption, citing the safety risks of refusing an air traffic control order. They disputed responsibility for the altitude deviations and told the department they had not deliberately ignored the restrictions.
A KLM spokesperson confirmed the settlement and said the airline would implement stronger compliance measures. Delta declined to comment.
Earlier code-share enforcement brought larger penalties
The department’s action follows earlier cases involving foreign airlines carrying U.S. carrier codes. An Emirates consent order dated June 13, 2024, assessed a $1,800,000 penalty for carrying JetBlue’s code in FAA-prohibited airspace. The case was recorded as Docket DOT-OST-2024-0001.
The department announced a $250,000 fine against Air Canada on September 27, 2024. That penalty involved flights carrying United Airlines’ designator code in prohibited regions between October 2022 and January 2023.
