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

May 14 (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.

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

Air New Zealand:

New Zealand’s flag carrier forecast its biggest annual pre-tax loss in four years, two months after withdrawing its earlier 2026 outlook, as the Iran war pushed up jet fuel prices, inflating costs and compounding pressure from weak demand and fleet constraints.

Air New Zealand forecast its annual pre-tax loss between NZ$340 million and NZ$390 million ($201.8 million-$231.5 million), a swing from last year’s NZ$189 million profit.

Earlier in March, Air NZ suspended its full-year earnings outlook, and said it had raised fares due to volatility in jet fuel markets – one of the first carriers to announce price hikes.

Auckland International Airport:

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.

a2 Milk:

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: 

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.

Cochlear:  

Australian hearing implants maker Cochlear trimmed its 2026 profit forecast after weaker trading in developed markets, citing slower surgical volumes, fewer hearing-aid referrals and softer consumer sentiment.

The company said the Middle East war has added risks of order cancellations, delivery delays and higher receivables exposure, worsening margin pressure and restructuring costs.

Fletcher Building:

New Zealand’s Fletcher Building said it faces indirect exposure to the Middle East conflict via supply chains, freight routes, energy costs, and the broader economic impact on construction demand across Australasia. 

The construction materials maker expects to pass through costs to customers, increasing prices across divisions. Plastics, which the company says face immediate exposure, will see price hikes by up to 36%, while other divisions will see 1%-5% hikes.

Flight Centre Travel :

Australian corporate travel manager Flight Centre Travel said hostilities in the Middle East are temporarily disrupting international travel patterns, estimating an impact of around A$10 million to its leisure segment profit in April.

The firm also expects potential foreign exchange headwinds in the fourth quarter from the translation of overseas profits, given the strength of the Australian dollar, and said its cost margin fell to 9.2% after the third quarter as it continued measures including a freeze on support roles.

Fonterra: 

New Zealand dairy producer Fonterra 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.

National Australia Bank:

National Australia Bank said it expects to incur credit impairment charges of A$706 million ($504.44 million) in the first half of fiscal 2026.

NAB said second-quarter interest-rate volatility, a weaker New Zealand dollar and the provisioning increase would reduce the group’s common equity tier 1 capital ratio by about 20 basis points as of March 31.

It also expects to apply a 1.5% discount to the first-half dividend reinvestment plan to raise up to A$1.8 billion to help shore up its balance sheet.

Orora: 

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:

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.

Qube Holdings:

Qube expects its EBITA earnings impact of around A$10 million-A$20 million for fiscal 2026 due to the Middle East conflict.

However, the logistics firm said that the recent events could support an acceleration in investment in new alternative energy projects, which could be advantageous for the firm.

Virgin Australia:

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 airline 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:

Westpac, Australia’s second-largest 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.

Woolworths:

Woolworths, the top Australian grocer, said the Middle East conflict has created significant uncertainty for customers and suppliers, compounding already acute cost-of-living pressures.

The firm also warned that fiscal 2026 domestic food segment earnings growth would no longer reach the upper end of the range due to fuel price pressures and customer retention investments.

Woolworths will also freeze shelf prices for 300 household staples for three months from May 1, as conflict-driven cost pressures on Australian suppliers push prices up across supermarkets.

Worley:

Worley said the adverse impact of the Middle East conflict on its underlying EBITA for fiscal 2026 is estimated to be in the range of A$30 million to A$40 million.

The Australian engineering firm warned that it was unlikely to achieve growth in underlying EBITA in fiscal 2026, but continued to target higher growth in aggregated revenue than in fiscal 2025.

($1 = 1.3996 Australian dollars)

($1 = 1.6852 New Zealand dollars)

(Reporting by Jasmeen Ara Shaikh, Sherin Sunny, Nichiket Sunil, Shivangi Lahiri, Keshav Singh Chundawat and Rajasik Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips, Maju Samuel and Diti Pujara)