21.6 C
Iraq
Thursday, October 30, 2025

Dollar Prices Rise in Baghdad and Erbil Markets

The US dollar exchange rate in Iraq climbed higher on Monday as trading opened in Baghdad and Erbil. The increase reflects ongoing pressure in local currency...
HomeEconomyIraq Airspace Closure Cuts Daily Aviation Revenue by $250K

Iraq Airspace Closure Cuts Daily Aviation Revenue by $250K

 Iraq aviation revenue, Iraq lost at least $250,000 each day after it shut down its airspace during the Iran-Israel conflict. Officials made the decision after missile exchanges raised regional safety concerns. This move caused major disruptions to the aviation sector.

Over 700 planes flew through Iraqi airspace daily before the conflict started. Most flights now reroute over neighboring countries.Each foreign passenger aircraft paid $450 to use Iraqi airspace, while cargo planes paid around $700.

This fee system helped Iraq maintain a steady stream of aviation income. The airspace closure eliminated that source overnight.

Parliament transport committee member Amer Abdul-Jabbar confirmed Iraq’s aviation-related revenue losses. He stressed the seriousness of the impact.According to Abdul-Jabbar, the Iraq aviation revenue losses exceed $250,000 per day. This figure excludes Iraqi Airways losses and indirect economic damage.

Iraqi Airways halted most domestic and international flights. As a result, the airline lost passengers and key operating income. Several other sectors also suffered. As well as Airport ground services, fuel suppliers, catering teams, and support crews all saw business drop sharply.

These industries rely on active flight schedules to survive. Fewer flights meant fewer jobs and lower daily earnings.

The conflict intensified after Israel launched strikes on Iran on June 13. Israel claimed it acted to stop nuclear threats.

Iran responded with missile attacks, sparking fears of a wider war. Airlines chose to avoid large sections of Middle Eastern skies.

This airspace avoidance forced flight diversions. Rerouted aircraft now face longer travel times and higher fuel costs.

Meanwhile, Iraq aviation revenue keeps shrinking as long as flights stay away. Abdul-Jabbar urged the government to evaluate conditions and reopen airspace once safety improves. He warned of continued economic harm.

He emphasized the importance of protecting Iraq aviation revenue to support related industries and reduce national losses.

Government leaders must act quickly to limit further damage. Reopening airspace safely could revive income and restore sector stability.