Aerial crisis: Iraq losing millions daily due to Iran-Israel conflict

Shafaq News

21-06-2025

Shafaq News/ Iraqi officials and aviation sources warned that the full closure of Iraqi airspace since June 13, amid the escalating conflict between Iran and Israel, is costing the country millions of dollars each day.
The shutdown has halted overflight traffic and inflicted heavy losses on local airlines and airports.
Previously, around 700 aircraft flights — including passenger and cargo — traversed Iraqi skies daily. Overflight fees averaged $450 per passenger flight and $700 for cargo planes, according to aviation data.
In May, the General Company for Air Navigation Services recorded 19,841 transit flights, a record figure highlighting Iraq's growing role as a regional aviation hub, its general manager, Abbas Sabbar Al-Baydani, commented.
'Direct losses from halted overflights exceed $250,000 per day,' remarked Amer Abdul-Jabbar, a member of Iraq's parliamentary transport committee, cautioning that this did not account for indirect losses faced by airlines, airports, and ground services.
In the south, Basra Airport has run only 13 flights since the crisis began. Baghdad, Najaf, and Erbil airports have seen partial or full suspensions.
Self-funded local carriers such as Iraqi Airways and Fly Baghdad are also struggling financially. Parliamentary and governmental sources note that overflight and operational revenues fund staff salaries and allowances, which are at risk if the closure persists.
Flight tracking analysis by FlightRadar24 showed that the closure of Iraqi and Iranian airspace has redirected flights over Saudi Arabia, doubling flight counts from 700 to 1,400 per day. Flights over Afghanistan surged by 500%, causing international carriers like Qatar Airways and FlyDubai to reroute via Pakistan and Afghanistan — adding approximately two hours to some journeys.
Iraq's civil aviation network includes key airports in Baghdad, Erbil, Najaf, and Basra, which serve as vital sources of non-oil revenue from overflight fees, ground services, and cargo operations. Despite recent growth in air traffic, the sector faces challenges in modernization and route expansion amid security and political instability.
Analysts warn that a prolonged airspace closure could deepen economic pressures, weaken Iraq's national aviation sector, and leave airlines ill-equipped to absorb the financial shock.