WASHINGTON, June 13 (Reuters) - The U.S. Transportation

Department said on Thursday it fined Emirates $1.5 million for

operating flights carrying JetBlue Airways' ( JBLU ) designator

code in prohibited airspace.

The department said that between December 2021 and August

2022, Emirates operated a significant number of flights carrying

the JetBlue Airways ( JBLU ) code between the United Arab Emirates and

the United States in airspace prohibited by the Federal Aviation

Administration to U.S. operators. This conduct also violated a

consent order issued in October 2020 fining Emirates for

operating other flights in airspace under an FAA prohibition.

Emirates was ordered to pay $200,000 under the 2020 order

and another $200,000 if it violated the order within a year.

An Emirates spokesperson said in a statement the airline had

intended to operate the flights at or above the restricted level

but that in flight, air traffic control did not give clearance

to ascend or had instructed flights to operate below the level.

"Our pilots duly followed ATC (air traffic control)

instructions, a decision which is fully aligned with

international aviation regulations for safety reasons," it said.

JetBlue ( JBLU ), whose code share with Emirates ended in 2022,

declined to comment.

The department said flights at issue had traversed the

Baghdad Flight Information Region below certain altitudes, which

the Federal Aviation Administration has prohibited all U.S. air

carriers, all U.S. commercial operators and code shares from

operating without special permission. Emirates could face

another $300,000 fine if it violates the rules again within a

year.

The Emirates spokesperson said in the statement that the

airline no longer operated flights with U.S. carrier codes over

Iraqi airspace.

Emirates told USDOT it prioritizes the safety of passengers,

employees, and other airspace users, adding the flights in

question only operated below the allowed level "as a result of

direct instructions from the relevant air traffic controllers"

and in some cases to avoid a collision.

Emirates argued the pilots "were legally obliged to follow

the instructions of the relevant air traffic controllers and any

failure to comply with such instructions would have had

significant safety implications," the department said.