Iraq’s airspace is losing approximately $360,000 per day as a result of the suspension of overflights across its airspace. This totals around $10.8 million per month, according to the Eco Iraq Observatory. The closure comes amid escalating regional tensions following the outbreak of the Israel-US conflict with Iran.
Previously, Iraqi airspace handled about 800 flights daily, including both domestic and international services. This exceeded earlier averages of 700 to 750 flights per day. Each aircraft paid roughly $450 in overflight fees, generating significant daily revenue for the country.
The Ministry of Transport closed Iraqi airspace on February 28, citing heightened security risks. These include missile and drone incidents across Iraq and attacks by Iran-aligned groups on US facilities in Baghdad and the Kurdistan Region. Consequently, all overflights have been suspended, causing major financial losses.
Experts note that the closure disrupts commercial aviation, trade, and regional connectivity. Airlines must reroute flights via alternative corridors, increasing fuel costs and operational delays. In turn, Iraq misses out on critical revenue from overflight fees, which typically form a steady income stream.
The Eco Iraq Observatory highlighted that the suspension affects both international carriers and domestic flights. Airlines previously contributed significant funds, which helped support infrastructure and operational budgets across Iraqi airports.
Furthermore, analysts warn that prolonged airspace restrictions could undermine Iraq’s position as a transit hub in the region. Regional instability combined with continued closure may discourage carriers from routing through Iraqi skies, further reducing revenue.
As a precaution, Iraqi authorities are coordinating with regional partners to assess risks and explore the possibility of reopening airspace safely. However, officials emphasize that the decision depends entirely on improvements in security and regional stability.
The ongoing conflict underscores the broader economic impact of geopolitical tensions on Iraq. Beyond aviation, businesses and trade corridors are affected, highlighting the financial stakes of continued instability.
