"Etihad Airways has announced that it will reroute its flights to avoid conflict airspace in Iraq," a statement by the carrier said.
"The decision follows the deterioration of the security situation in parts of the country.
"The safety of Etihad Airways' passengers and staff is of paramount importance, and the airline will continue to monitor the security situation closely."
On Thursday, Etihad also said it was suspending flights to Iraqi Kurdistan's capital of Arbil because of fighting in northern Iraq.
However, "flights to Basra and Baghdad, which have a daily risk assessment, continue to operate as normal," Etihad said today.
The Federal Aviation Administration in Washington banned all US civilian flights over Iraq just hours after American warplanes Friday bombed positions held by the jihadists, who have occupied swathes of northern Iraq.
British Airways has said it will no longer overfly Iraq, as have Lufthansa and its subsidiaries Austrian Airlines and Swiss -- joining Air France, Emirates, KLM Royal Dutch Airlines and Virgin Atlantic, which quietly opted to do so over the past two weeks.
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