Companies across Australia and New Zealand are increasingly signaling the financial strain stemming from the U.S.-Israeli war on Iran. The escalating conflict has led to higher fuel prices, which in turn are stoking inflation, dampening both business and consumer confidence, and ultimately weighing on corporate earnings. This ripple effect is being observed across various sectors, prompting a reassessment of outlooks and operational strategies for many regional enterprises.
Airlines have been among the first to feel the brunt. New Zealand’s flag carrier, Air New Zealand, suspended its full-year earnings outlook and raised fares due to volatile jet fuel markets. Australia’s Qantas Airways similarly raised its second-half fuel cost outlook by up to A$800 million, leading to fare increases and domestic capacity cuts. Auckland International Airport reported an 81% drop in passenger numbers on Middle Eastern routes in March year-on-year. Logistics firms are also impacted; Cleanaway Waste Management, which provides waste collection and recycling services, slashed its full-year operating earnings forecast by approximately A$20 million due to higher costs and lower activity.
Beyond transport, the conflict is affecting other key industries. New Zealand’s a2 Milk, a dairy company specialising in infant formula and other dairy products, cut its fiscal 2026 profit outlook due to increased freight costs and supply chain disruptions. Australian hearing implants maker Cochlear trimmed its 2026 profit forecast, citing risks of order cancellations and delivery delays. Packaging company Orora cancelled its share buyback and ceased bottle production at a UAE facility due to shipping route closures. Major banks like National Australia Bank and Westpac are anticipating increased credit impairment charges and higher credit provisions, reflecting interest-rate volatility and emerging profit pressures. Top Australian grocer Woolworths flagged significant uncertainty for customers and suppliers, impacting domestic food segment earnings growth and prompting a three-month price freeze on 300 household staples.
