April 14 (Reuters) – Companies in Australia and New Zealand are beginning to signal the financial strain from the U.S.-Israeli war nL6N40X074 on Iran, as higher fuel prices stoke inflation, dent business and consumer confidence https://www.reuters.com/world/asia-pacific/australian-business-sentiment-crashes-march-worries-about-fallout-iran-war-2026-04-14/, and weigh on corporate earnings.
Two of Australia’s top companies, Westpac Banking Corp and Qantas Airways, 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
New Zealand’s flag carrier suspended nL4N3ZX1VK its full-year earnings outlook in early March, and said it had raised fares nL1N3ZY033 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
New Zealand’s a2 Milk cut its fiscal 2026 profit outlook nL6N40V06Y 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 https://cleanaway.bynder.com/asset/4776c00e-c5e5-4b11-bf00-9a30b2e43233/CW_Web_Asset_Trading-Update-Impacts-of-the-conflict-in-the-Middle-East-3050940.pdf 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
New Zealand’s dairy producer said nL1N40A05M that the conflict was impacting its supply chain https://www.fonterra.com/nz/en/our-stories/media/fonterra-delivers-another-strong-result-for-hy26.html, 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:
Packaging company Orora trimmed nL4N40S01N 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 nL1N40W15O 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:
Virgin Australia said nL4N4080A1 in mid-March 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 no. 2 bank by assets, said nL4N40W1RT 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.
($1 = 1.4118 Australian dollars)
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Sherry Jacob-Phillips)
Comments