Translation:The German airplane is flying over the Italian capital.
Because "to fly" is a Verb of Motion, and as such, in Polish the difference between Present Simple (latać) and Present Continuous (lecieć) is visible. If it is flying at the moment, then it's "leci". If it flies there regularly, then it's "lata".
Would it be possible to use "above" instead of "over" here? It seems like they both mean much the same thing.