Factbox: From airlines to banks: Australian, New Zealand firms feel heat of Gulf crisis

Auckland International Airport

14/04/2026 22:45

Updates with details on Virgin Australia

April 15 (Reuters) - Companies in Australia and New Zealand are beginning to signal the financial strain from the U.S.-Israeli war on Iran, as higher fuel prices stoke inflation, dent business and consumer confidence, and weigh on corporate earnings.

Two of Australia's top companies, Westpac Banking Corp WBC.AX and Qantas Airways QAN.AX, warned on Tuesday that their earnings could be impacted by soaring fuel prices and consumers struggling with high prices and borrowing costs.

Here are some of the companies in Australia and New Zealand that have flagged an impact from the Middle East conflict:

Air New Zealand AIR.NZ

New Zealand's flag carrier suspended its full-year earnings outlook in early March, and said it had raised fares due to volatility in the jet fuel markets - one of the first carriers to announce price increases.

On April 7, the airline said it would slash flights through May and June, affecting around 4% of flights and 1% of total passengers.

a2 Milk ATM.NZ

New Zealand's a2 Milk cut its fiscal 2026 profit outlook as higher freight costs due to the conflict and temporary supply chain disruptions affect the availability of its China-label infant milk formula product in its biggest market.

Cleanaway Waste Management CWY.AX:

The waste management company slashed its full-year operating earnings forecast by about A$20 million ($14.17 million), largely reflecting higher costs, lower activity, and timing differences in cost recovery.

Fonterra FCG.NZ

New Zealand's dairy producer said that the conflict was impacting its supply chain, and could increase its inventory levels and costs in the second half of the year, while also contributing to volatility in global commodity prices.

Orora ORA.AX:

Packaging company Orora trimmed its annual earnings forecast for French unit Saverglass and cancelled its share buyback programme, citing the impact of the war.

The company has also ceased bottle production at its glass production facility at Ras al Khaimah in the United Arab Emirates due to the closure of shipping routes.

Qantas QAN.AX:

Qantas Airways, Australia's flag carrier, raised its fuel cost outlook for the second half of the year by up to A$800 million, and said it has not started its planned share buyback of A$150 million, citing sharply higher and volatile jet fuel prices.

To offset rising costs, Qantas is lifting fares and shifting flights toward stronger routes such as Paris and Rome, where demand remains firm, while cutting domestic capacity by about 5 percentage points in the June quarter.

Virgin Australia VGN.AX:

Virgin Australia
said
 it expects an increase in fuel costs, one of its largest expenses, of around A$30 million to A$40 million ($21.39 million to $28.52 million) for the second half of fiscal 2026.

The airlines in mid-March
said
 that it was adjusting fares as rising costs across the aviation sector are "exacerbated by the situation in the Middle East".

Westpac WBC.AX:

Westpac, Australia's no. 2 bank by assets, said energy market shocks from the conflict were emerging as profit pressures over the first half of the financial year ended March 31, prompting the lender to increase credit provisions.

Westpac's net interest margin in its treasury and markets division was weaker amid interest-rate volatility linked to the conflict, with a weaker outlook already prompting higher credit provisioning.

Westpac's provisioning for potential bad debt is now at its highest point since the COVID-19 pandemic.

Auckland International Airport AIA.NZ

New Zealand's Auckland International Airport said flights from Auckland to the Middle East were disrupted.

The Middle Eastern routes saw an 81% drop in passenger numbers and a 73% reduction in seat capacity in March, compared with a year ago, the airport operator added.

($1 = 1.4027 Australian dollars)

 (Reporting by Jasmeen Ara Shaikh & Sherin Sunny in Bengaluru; Editing by Maju Samuel and Sherry Jacob-Phillips)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))