European transport ministers have warned that EU governments will offer their airlines only limited aid to ease the impact of the war in Iraq.
European Union governments said they would give compensation to help with route closures, security and insurance. However they claim they will not provide large cash injections.
The International Air Transport Association has estimated the industry could lose $10 billion (£6.3bn) worldwide due to the war.
Greek Transport Minister Christos Verelis, who chaired the EU transport minister's meeting said: "Our message is that we will not open the door to subsidies, that's quite clear."
Verelis said the EU would act if it found other countries were unfairly propping up airlines on routes where they compete with European carriers.
European airlines have previously complained that their US competitors were using some of the $15 billion (£9.5bn) in federal support - intended to help with insurance costs - to undercut them on trans-Atlantic routes.
Verelis said: "We can't simply stand by and watch and give up our markets to American carriers. That would be suicide."
Ministers will consider a law empowering the EU to impose duties on foreign airlines that it believes have received unfair subsidies when they next meet in June.
