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Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war on Iran is causing financial stress for companies in Australia and New Zealand. Higher fuel prices are a major factor, as they increase inflation, erode consumer and business confidence, and reduce corporate earnings. Below are some companies in Australia and New Zealand who have reported an impact of the Middle East conflict. Air New Zealand, New Zealand's national carrier, suspended its full-year earning outlook in early March and announced that it had increased fares because of volatility on the jet fuel market. It was one of the first carriers who announced price increases. On April 7, the airline announced that it would cut flights by 4% in May and June. This will affect around 1% of passengers and 4% of flights. Auckland International Airport, New Zealand: Auckland International Airport reported that flights to the Middle East from Auckland were affected. In March, the number of passengers on Middle Eastern routes dropped by 81% and seat capacity fell by 73% compared to a year earlier, according to airport operator. New Zealand-based a2 Milk has cut its profit forecast for fiscal 2026 as higher freight costs and supply chain disruptions due to conflict have affected the availability of the China-label infant formula product on its largest market. Cleanaway Waste Management has slashed their full-year operating profit forecast by approximately A$20million ($14.17million), due largely to higher costs, reduced activity and timing differences when it comes to cost recovery. Cochlear, an Australian manufacturer of hearing implants, has lowered its profit forecast for 2026 due to weaker trading on developed markets. The company cited slower surgical volumes, lower referrals for hearing aids, and a softer consumer attitude. The company stated that the Middle East War has increased risks such as order cancellations, delays in delivery, and a higher exposure to receivables. It also said that restructuring costs and margin pressure have been worsened by the Middle East conflict. Endeavour Group: Pub-operator Endeavour warned of fuel and freight inflation due to the war in Iran, which would increase their supply chain costs by A$6-A$8 million. The company said that it was experiencing price pressure in its entire supply chain because of?higher fuel prices linked to the Middle East Conflict. Owner of liquor chain Dan Murphy's, has launched a three-year drive to improve efficiency. The goal is to save A$100,000,000 by 2027, by reducing the number of support offices and optimising store layouts, among other things. Fletcher Building, New Zealand: Fletcher Building, New Zealand, said that it is 'indirectly exposed to the Middle East conflict through supply chains, freight lines, energy costs and the wider economic impact on the construction demand in Australasia. Construction materials manufacturer expects to increase prices in all divisions. Plastics will be affected by price increases of up to 36%. Other divisions will only see a 1%-5% increase. Fonterra New Zealand, a dairy producer, said the conflict could impact its supply chain and increase its inventory and costs in second half of year. It also contributed to volatility in global commodities prices. National Australia Bank: National Australia Bank said that it expects credit impairment charges of A$706 ($504.44 millions) in the first fiscal half 2026. NAB stated that the volatility of interest rates in the second quarter, the weakening New Zealand dollar, and the increase in provisioning would result in a reduction of the common equity tier one capital ratio for the group by approximately 20 basis points on March 31. The company also plans to apply a discount of 1.5% to its dividend reinvestment program for the first half to raise A$1.8 billion and help strengthen its balance sheet. Orora Packaging Company: Orora has lowered its earnings forecasts for its French division Saverglass, and cancelled the share buyback program. The company cited the impact of war. Due to the closures of shipping routes, the company also stopped bottle production in its glass production plant at Ras al-Khaimah (United Arab Emirates). Qantas Airways: Australia's flag-carrier, Qantas Airways has raised its fuel costs outlook for the second half year by as much as A$800,000,000 and announced that it had not yet started its planned A$150,000,000 share buyback, citing the sharply increased and volatile jet fuel price. Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where the demand is still strong. They have also reduced their domestic capacity in June by approximately 5 percentage points. Qube Holdings: Qube anticipates that the Middle East conflict will have an impact on its EBITA of between A$10 and A$20 million in fiscal 2026. The logistics company said that the recent events may support a rapid acceleration of investment in alternative energy projects which could be beneficial for the firm. Virgin Australia: Virgin Australia expects fuel costs to increase by around A$30 to A$40 million ($21.39 to $28.52 millions) in the second half fiscal 2026. In mid-March, the airlines announced that they were adjusting their fares due to the rising costs in the aviation industry. Westpac: Westpac, Australia's no. Westpac, Australia's no. Westpac's net margin for its Treasury and Markets division has been weakened amid the interest rate volatility caused by the conflict. A weaker outlook had already led to higher credit provisioning. Westpac has increased its provision for bad debts since the COVID-19 pandemic. Woolworths Woolworths is the largest Australian supermarket. It said that the Middle East conflict had created uncertainty for both customers and suppliers. This has exacerbated the already severe cost of living pressures. The company also warned that the domestic food segment's earnings growth would not reach the top end of the range in fiscal 2026 due to fuel price pressures, and customer retention investments. Woolworths has also announced that it will freeze the prices of 300 household staples from May 1 for three months, as cost pressures imposed by conflict on Australian suppliers are driving up prices across all supermarkets. Worley: Worley estimates that the negative impact of the Middle East Conflict on its underlying EBITA in fiscal 2026 will be between A$30 and A$40 Million. The Australian engineering company warned that it would not be able to grow its underlying EBITA by more than 5% in fiscal 2026 but still aimed to increase revenue in fiscal 2026.
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Sources say that the Air India CEO search has narrowed down to Singapore Air executive Kannan and insider Aggarwal.
Two sources who have direct knowledge of this matter say that Vinod Kanan, the Singapore Airlines CEO and Air India's Nipun Aggarwal, the commercial head of Air India are the frontrunners for the position of new CEO at Air India. This suggests that the search for the next CEO of India's second largest airline is close to completion. New Zealander Campbell Wilson announced last month that he resigned from the airline due to its persistent losses and regulatory scrutiny. One source said that the board of 'Tata Sons', the majority owners of the airline is currently discussing both names. There has not been a final decision and another candidate could emerge as the frontrunner. Tata Sons' spokesperson did not respond to a comment request. Air India refused to comment. Aggarwal and Kannan did not reply to text messages seeking a comment. Singapore Airlines owns a quarter of Air India. The rest is owned by Tata Sons. Air India's choice of a CEO is made at a critical time. The airline is facing heavy losses, increased regulatory scrutiny following a fatal crash last year and operational disruptions caused by the Iran War, which has?driven up costs and compounded effects of Pakistan’s airspace restriction. In April last year, Pakistan banned Indian carriers in its airspace following tensions between the two neighbours. Kannan was the CEO of Vistara - the joint venture between Tata Airlines and Singapore Airlines - before it merged with Air India. Kannan is a seasoned aviation professional who began his career in 2001 with Singapore Airlines. He has since held various roles within the airline. Aggarwal began working for Air India in 2022, after Tata Sons acquired the airline from the Indian government. According to Air India, he played a "key role" in the transformations of several Tata Group Companies between 2017 and 2020. He has also worked as an investment banker with Bank of America Merrill Lynch.
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What is the hantavirus which killed three passengers on a cruise ship?
Authorities and media reported on Sunday that three people died and another three were ill following a suspected hantavirus outbreak aboard a Dutch-based cruise ship. This is some information about the virus. Spread by?RODENTS According to the World Health Organization, Hantavirus can be spread by rodents and in rare cases between humans. Infections are most common when rodent saliva, urine, and droppings become airborne. The name of the virus comes from Hantan River, a region in South Korea where it was first identified back in the 1970s. It can be fatal Hantaviruses are a group of viruses which cause two diseases, the first affecting the lungs while the second attacks the kidneys. The first is the one that gets most attention, as it has a mortality rate of about 40%. Hantavirus respiratory syndrome is most common in North and South America. The Canadian government reports that there are approximately 200 cases of hantavirus-pulmonary illness each year. According to autopsy results, Betsy Arakawa died in New Mexico from hantavirus lung syndrome 2025. She was the wife of actor Gene Hackman. SYMPTOMS According to the CDC, hantavirus is usually accompanied by flu-like symptoms such as fatigue or fever one to eight weeks after exposure. After four to ten days, you may experience a cough, shortness of breath, and fluid in your lungs. The CDC says that it is difficult to diagnose flu symptoms within 72 hours, and so they can be easily mistaken as a virus. TREATMENT Since there is no specific treatment for hantavirus, the focus of care is on supportive measures such as rest and fluids. Some patients may require breathing support, such as a ventilator. PREVENTION Experts state that exposure to hantavirus is minimized when rodents are removed from areas with people. Vacuuming or sweeping up dried droppings can cause the virus to be aerosolized.
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United Airlines plane strikes light pole at Newark Airport
According to the Port Authority of New York & New Jersey, a United Airlines plane struck a light post on its final descent into Newark International Airport on Sunday. The aircraft caused damage to both the pole and a truck traveling nearby. According to the Federal Aviation Administration, United Airlines Flight 169 hit a light pole while approaching Newark Liberty International Airport around 2 p.m. FAA said that the Boeing 767-400 was safely landed and had arrived from Venice, Italy. A spokesperson for United said that "our maintenance team is evaluating damage to aircraft." Our crew was removed from service in order to conduct a thorough flight safety investigation. According to the?Port Authority, no injuries on board were reported. Minor damage was also observed. According to a spokesperson, airport staff checked the runway for debris and quickly returned normal operations. The Port Authority reported that the tractor?trailer's driver, who suffered minor injuries, was transported to the hospital and released. The FAA and the National?Transportation?Safety Board?have said they will investigate this incident. Reporting by Doyinsola Oladipo, Washington; additional reporting by David Shepardson. Editing by Nick Zieminski.
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United Airlines plane strikes light pole at Newark Airport
According to the Port Authority of New York & 'New Jersey, a United Airlines aircraft struck a light post on its final descent into Newark International Airport on Sunday. The damage caused to the pole and to a tractor-trailer traveling along the highway nearby. United Airlines Flight 169?hit a light post on the New Jersey Turnpike at around 2:00 p.m. while on approach to landing at?Newark Liberty International Airport. This was according to the 'Federal Aviation Administration. FAA reported that the?Boeing 777 landed safely after arriving from Venice, Italy. Port Authority said that no injuries had been reported and minor damage was noted to the aircraft. According to a spokesperson, airport staff checked the runway for debris. Normal operations were quickly resumed. The driver of the tractor trailer was taken to hospital with minor injuries. He has since been discharged. The FAA announced that it would investigate the incident. United did not immediately respond to a comment request.
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WHO confirms three deaths and one case of Hantavirus on an Atlantic cruise ship
The World Health Organization announced on Sunday that three people?died? and one case of the hantavirus was confirmed among passengers aboard a cruise ship?sailing on the 'Atlantic Ocean. In a posting on?X, the company said that six people were affected by the incident. Three of them have died, and one is currently in intensive care. WHO has not named the vessel, or its operator. However, a source who is familiar with the situation says it's the MV Hondius travelling from Argentina towards Cape Verde. The WHO stated that it would facilitate coordination between member states and the ship operators to ensure the medical evacuation of two symptomatic passengers as well as the full assessment of public health risks and support for the other passengers aboard. The Dutch Foreign Ministry confirmed the deaths of two Dutch passengers, but did not provide any further details. Sky News reported a British visitor was being treated at a South African hospital?after a suspected hantavirus infection, citing South Africa’s Department of?Health. The report also quoted the British Foreign Office, which said it was closely tracking reports of "a potential hantavirus infection on the Hondius" and was in contact with local authorities and the cruise line. The British Foreign Office and South Africa's Department of Health have not responded to requests for comments. Reporting by Chandni in Bengaluru, Additional reporting by Charlotte Van Campenhout, Mihika Sharma and Edmund Klamann.
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Spirit reports that most customers have been refunded and staff has returned to work after the shutdown
Spirit Airlines announced on Sunday that it had almost completed refunding passengers and returning crew members to their homes following its decision to cease operation over the weekend. Spirit Airlines abruptly cancelled flights early Saturday morning. This left passengers and staff stranded in the U.S. as well as the Caribbean and Latin America. The airline had collapsed under financial pressures, including a steep rise in fuel costs due to the Iran War. Cirium, an aviation analytics firm, reported that the carrier had over 4,000 domestic flights planned through May 15. The company reported that most customers who paid with credit cards or debit cards had received their refunds by Saturday night, but a small number were still awaiting processing. Over the weekend, a final?group? of approximately?1,500 crewmembers was re-based. Other airlines have offered discounted rescue fares to stranded passengers. Reporting by Sabrina Valle in New York and Doyinsola Oladipo; editing by Cynthia Osterman
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Americans on a tight budget lament the loss of Spirit Airlines, a low-cost airline
U.S. travelers were upset to hear of Spirit Airlines' closure on Saturday. They said that the closure of this ultra-low cost carrier eliminated one of their few options for air travel. Spirit Airlines abruptly canceled flights overnight, leaving passengers and staff stranded in the U.S. Caribbean and Latin America. The airline collapsed under financial pressures, including a sharp increase in fuel prices due to the Iran War. Former Spirit customers have praised the airline on social media sites such as Reddit or X where they vent their frustrations over delayed or cancelled flights. Reddit user AioliUpset7805 wrote on a thread regarding the airline's closing, "They were truly one of the last cheap options -- 'get my there as quickly and cheaply as possible'." "I'll be missing them." Spirit Airlines, which has been operating since the early 1990s and is known for offering?some the cheapest flights available in exchange for limited services and luxuries,' became well-known for its 'limited luxuries, but high quality service. Spirit, a Florida-based airline, charged for bottled waters, for instance, and didn't provide "reclining seats". Spirit Airlines' lack of amenities has been the subject of many online memes. However, many travelers say that Spirit made it possible for Americans to travel with their families or visit relatives in distant parts of the United States. BigBubby305, a Reddit user, said that vacations were now out of the reach of millions of families. The price difference between Spirit Airlines and other carriers such as Delta and American Airlines can be more than $1,000. Other Airlines Seek to Fill Gap Overnight, at the Orlando International Airport, a digital departure sign was filled up with red alerts of Spirit flight cancellations. Destinations ranged from Nashville, Tennessee to San Juan Puerto Rico. After Spirit ceased operations, several U.S. airlines, including Frontier, JetBlue, and Southwest, announced discount fares as well as plans for new routes this summer. Airlines such as?Delta, American Airlines and Frontier offered temporary lower fares for Spirit passengers. Spirit's closing comes as prices are rising across the American economy. This has been exacerbated by the U.S.-Israeli conflict against Iran. According to the latest data, Spirit's demise, and a recent doubled in jet fuel prices are likely to increase costs for American travelers. "I always took pride in saving people money, and allowing them to travel who couldn't otherwise afford it," wrote Reddit users Coryntrevors. They piloted Spirit Airbuses' signature bright yellow Airbuses from Las Vegas for more than a decade. "To close down for good tonight was one of the most saddest moments of my life." Reporting by Laila KEARNEY in New York. Editing by Ross Colvin, Keith Weir and Keith Weir
Airline company pilots, crews voice concerns about Middle East routes
In late September, an experienced pilot at lowcost European airline Wizz Air felt distressed after learning his plane would fly over Iraq at night amid mounting tensions in between nearby Iran and Israel.
He chose to query the decision given that just a week previously the airline company had deemed the route hazardous. In reaction, Wizz Air's. flight operations group told him the airway was now. considered safe and he needed to fly it, without providing even more. explanation, the pilot said.
I wasn't truly happy with it, the pilot, who asked for. privacy from worry he might lose his task, informed Reuters. Days. later, Iraq closed its airspace when Iran fired missiles on Oct. 1 at Israel. It validated my suspicion that it wasn't safe.
In response to Reuters' inquiries, Wizz Air said safety is its. top priority and it had actually carried out detailed danger assessments. before resuming flights over Iraq and other Middle Eastern. countries.
Reuters talked to four pilots, 3 cabin crew members,. 3 flight security professionals and 2 airline company executives about. growing safety issues in the European air market due to. intensifying stress in the Middle East following Hamas' attack. on Israel in October 2023, that triggered the war in Gaza.
The Middle East is a key air passage for airplanes heading to. India, South-East Asia and Australia and in 2015 was. criss-crossed everyday by 1,400 flights to and from Europe,. Eurocontrol data show.
The safety debate about flying over the region is playing. out in Europe mainly because pilots there are protected by. unions, unlike other parts of the world.
Reuters evaluated nine unpublished letters from 4 European. unions representing pilots and teams that expressed worries. about air safety over Middle Eastern nations. The letters were. sent to Wizz Air, Ryanair, airBaltic, the European. Commission and the European Union Air Travel Safety Agency (EASA). between June and August.
Nobody should be forced to operate in such a harmful. environment and no business interests should outweigh the. safety and well-being of those on board, checked out a letter,. dealt with to EASA and the European Commission from Romanian. flight crew union FPU Romania, dated Aug. 26.
In other letters, staff gotten in touch with airlines to be more. transparent about their decisions on routes and required the. right to refuse to fly a hazardous route.
There have been no casualties or accidents impacting. industrial air travel connected to the escalation of stress in the. Middle East because the war in Gaza emerged in 2015.
Air France opened an internal investigation after among its. business airplanes flew over Iraq on Oct. 1 during Tehran's. rocket attack on Israel. On that event, airline companies rushed. to divert lots of aircrafts heading towards the impacted areas in. the Middle East.
The ongoing stress in between Israel and Iran and the abrupt. ousting of President Bashar al-Assad by Syrian rebels at the. weekend have raised issues of further insecurity in the. region.
The use of missiles in the region has actually restored memories of. the downing of Malaysian Airlines Flight MH17 over eastern. Ukraine in 2014 and of Ukraine International Airlines flight. PS752 en path from Tehran in 2020.
Being inadvertently shot-down in the mayhem of war is the top. worry, 3 pilots and two air travel security professionals told. Reuters, in addition to the threat of an emergency situation landing.
While airlines consisting of Lufthansa and KLM. no longer fly over Iran, carriers consisting of Etihad,. flydubai, Aeroflot and Wizz Air were still crossing. the nation's airspace as just recently as Dec. 2, data from tracking. service FlightRadar24 show.
Some European airlines consisting of Lufthansa and KLM allow. crew to opt-out of paths they don't feel are safe, but others. such as Wizz Air, Ryanair and airBaltic don't.
AirBaltic CEO Martin Gauss said his airline satisfies an. global safety requirement that does not need to be adjusted.
If we begin a right of rejection, then where do we stop? the next person feels dissatisfied overflying Iraqi airspace. since there's tension there? he informed Reuters on Dec. 2 in. reaction to questions about airBaltic flight safety talks with. unions.
Ryanair, which periodically flew to Jordan and Israel. until September, stated it makes security choices based on EASA. guidance.
If EASA states it's safe, then, honestly, thank you, we're not. thinking about what the unions or some pilot believe, Ryanair CEO. Michael O'Leary informed Reuters in October, when inquired about staff. security issues.
EASA said it has actually been associated with a number of exchanges with. pilots and airline companies on route safety in recent months worrying. the Middle East, including that disciplining staff for raising. safety concerns would run counter to a just culture where. employees can voice concerns.
INSUFFICIENT REASSURANCES
One Abu Dhabi-based Wizz Air pilot told Reuters he was. comfortable flying over the conflict-torn region as he believes. the market has an extremely high security standard.
But for some pilots and team members operating at budget plan. airlines, the peace of minds of the companies are insufficient.
They told Reuters pilots should have more choice in refusing. flights over possibly hazardous airspace and asked for more. info about airline security evaluations.
The fact that Wizz Air sends e-mails asserting that it's. safe is unimportant to business workers, read a letter from. FPU Romania to Chief Operating Officer Diarmuid O'Conghaile,. dated Aug. 12. Flights into these conflict locations, even if they. are rescue objectives, ought to be carried out by military personnel. and airplane, not by business teams.
Mircea Constantin, a previous cabin crew member who represents. FPU Romania, stated Wizz Air never ever provided an official response to this. letter and comparable ones sent previously this year, however did send out. security assistance and updates to personnel.
A pilot and a cabin team member, who decreased to be named. for worry of retaliatory action, said they got warnings from. their employers for declining to fly on Middle Eastern routes or. calling in sick.
CONGESTED SKIES
Last month, 165 rockets were released in Middle Eastern. conflict zones versus simply 33 in November 2023, according to the. most current offered information from Osprey Flight Solutions.
However airspace can just be enforcably limited if a nation. chooses to shut it down, as when it comes to Ukraine after. Russia's full-scale invasion in 2022.
Several airline companies have decided to briefly suspend flights to. locations like Israel when tension increases. Lufthansa and British. Airways did so after Iran bombarded Israel on April 13.
However this limits the airspace in usage in the already crowded. Middle Eastern skies.
Choosing to fly over Central Asia or Egypt and Saudi Arabia. to avoid Middle Eastern locations is also more pricey as aircrafts. burn more fuel and some nations charge higher overflight charges.
Flying an industrial aircraft from Singapore to London-Heathrow. through Afghanistan and Central Asia, for example, cost an. airline $4,760 in overflight costs, about 50% more than a route. through the Middle East, according to two Aug. 31 flight plans. examined .
Reuters might not name the airline as the flight strategies are. not public.
Some private jets are preventing the most crucial locations.
At the minute, my no-go areas would be the hotspot points:. Libya, Israel, Iran, just due to the fact that they're sort of captured up in. it all, stated Andy Spencer, a Singapore-based pilot who flies. personal jets and who formerly worked as an airline pilot.
Spencer, who has twenty years of experience and flies through. the Middle East regularly, said that on a current flight from. Manila to Cuba, he flew from Dubai over Egypt and north through. Malta before refuelling in Morocco to prevent Libyan and. Israeli airspace.
EASA, regarded by market professionals as the strictest local. security regulator, issues public bulletins on how to fly safely. over conflict zones.
However these aren't obligatory and every airline chooses where. to take a trip based on a patchwork of federal government notifications,. third-party security consultants, internal security teams and. details sharing between carriers, leading to divergent. policies.
Such intelligence is not normally shown staff.
The opacity has sown fear and skepticism amongst pilots, cabin. crew and passengers as they question whether their airline has. missed something providers in other countries know, said. Otjan de Bruijn, a previous head of European pilots union the. European Cockpit Association and a pilot for KLM.
The more information you offer to pilots, the more. notified a decision they can make, stated Spencer, who is likewise an. operations expert at flight advisory body OPSGROUP, which. offers independent functional guidance to the air travel market.
When Gulf players like Etihad, Emirates or flydubai suddenly. stop flying over Iran or Iraq, the industry sees it as a. reliable indicator of danger, pilots and security sources said, as. these airline companies can have access to comprehensive intelligence from. their governments.
Flydubai informed Reuters it operates within airspace and. airways in the region that are authorized by Dubai's General Civil. Air travel Authority. Emirates said it constantly monitors all. routings, changing as needed and would never run a flight. unless it was safe to do so. Etihad said it only runs. through authorized airspace.
Guest rights groups are also requesting for travellers to. receive more info.
If travelers decrease to take flights over dispute zones,. airlines would be disinclined to continue such flights, stated. Paul Hudson, the head of U.S.-based passenger group Flyers. Rights. And travelers who take such flights would do so. notified of the dangers.
(source: Reuters)