Latest News
-
Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war on Iran is causing financial strain on Australian and New Zealand companies, with higher fuel prices increasing inflation, reducing consumer confidence and affecting corporate earnings. Two of Australia's largest companies, Qantas Airways and Westpac?Banking Corporation, warned Tuesday that their earnings may be affected by the soaring price of fuel and by consumers who are struggling with high prices and borrowing rates. Below are some of the Australian and New Zealand companies that have flagged an impact on the Middle East conflict. Air New Zealand New Zealand's Flag carrier announced a price increase in March after suspending its earnings forecast for the full year. The airline announced on April 7 that it would cut flights by 4% and 1% in May and June. a2 Milk New Zealand's A2 Milk has cut its profit forecast for fiscal 2026 as higher freight costs and temporary supply chain interruptions have affected the availability of their China-label infant formula product in the country's biggest market. Cleanaway Waste Management: The company's full-year earnings were cut by A$20m ($14.17m) due to higher costs, reduced activity and differences in timing of cost recovery. Fonterra New Zealand's largest dairy producer stated that the conflict is impacting their supply chain and could increase its inventory levels and cost in the second half year while also contributing volatility in global commodities prices. Orora: Orora, a packaging company, has lowered its earnings forecasts for Saverglass' French unit and canceled?its stock buyback program. The company cited the impact of war. Due to the closure of shipping routes, the company also stopped bottle production at the glass production facility in Ras al Khaimah (the United Arab Emirates). Qantas: Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second-half of the year up to A$800m and announced that it will not be starting its planned A$150m share buyback, citing the sharply higher jet fuel prices. Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where demand is still strong. They have also reduced their domestic capacity in the second quarter by approximately 5 percentage points. 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. The no.2 bank in Australia by assets said that energy market shocks were beginning to show up as profit pressures during the first half. Westpac's net margin for its Treasury and Markets division has been weakened due to interest rate volatility related to the conflict. A weaker outlook is already leading to higher credit provisioning. Westpac's provisioning to cover potential bad debt has reached its highest level since the COVID-19 pandemic. Auckland International Airport Auckland International Airport in New Zealand said that flights between Auckland and the Middle East had been disrupted. According to the airport operator, in March there was an 81% decrease in passenger numbers on Middle Eastern routes and a 73% drop in seat capacity compared to a year earlier. Fletcher Building Fletcher Building in 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 across Australasia. Construction materials manufacturer expects to increase prices in all divisions as a result of passing on costs to its customers. The company will increase prices by up to 36 percent in plastics, where it says they are most vulnerable. Other divisions can expect a 1%-5% price increase.
-
J.B. Hunt reports higher quarterly profit due to cost reductions and improved volumes that offset fuel costs
J.B. Hunt Transportation Services, a U.S. trucking company, reported on Wednesday a higher profit for the first quarter. Efforts to cut costs and improve volumes in key segments offset increased fuel prices. In aftermarket trading, shares of the company rose by 1.2%. After a four-year hiatus, the U.S. trucking sector showed signs of revival in early 2012. However, higher fuel prices?due the Middle East war have delayed the long-awaited turnaround. J.B Hunt's goal has been to reduce costs and increase efficiency during this time. Fuel surcharges are a way that the company, and other contract trucking companies in the U.S., have historically recouped their higher fuel costs. Fuel surcharge revenues grew by 12.8% in the first quarter compared to a 3.3% increase the previous quarter. In the quarter reported, the volumes of its Intermodal segment, a division that accounts for around 50% of company revenue and involves the shipping of goods using two or more modes?of?transportation, increased 2% over the previous year. Dedicated Contract Services, which accounts for a quarter (25%) of the company’s revenue, grew by 2%. The Arkansas-based company posted a first-quarter profit of $141.6 million or $1.49 per share. This is up from $117.7 millions, or $1.17, per share a year earlier. The company reported revenue of about $3.06billion for the quarter that ended on March 31 compared to $2.92billion a year earlier. (Reporting from Nandan Mandayam in Bengaluru and Megavarshini G. Somasundaram; editing by Vijay Kishore).
-
White House does not have an opinion on the potential United Airlines merger with American Airlines
Karoline Lavitt, White House Press Secretary, told reporters that the Trump administration "doesn't have an opinion" on reports United Airlines was considering merging with rival American Airlines. Leavitt stated, "I understand that the idea has been put forward by the private sector.?But it is not something on which the White House or the President have an opinion. Two sources claim that United Airlines CEO Scott Kirby discussed the possibility of merging with American Airlines in a late-February meeting with U.S. president Donald Trump. This raises the prospect of a deal which could reshape the industry, but will likely face regulatory obstacles. The combination of two major?U.S. The combination of two of the largest?U.S. According to OAG data, United and American were already the two largest airlines in the world by available capacity, including international flights.
-
Source: Iran proposes allowing ships to leave Oman side of Hormuz without being attacked
Iran may 'consider' allowing ships to pass through the Oman side of Strait of Hormuz without risk of attack as part of its negotiating proposals with the United States to avoid a new conflict. Due to Iran's disruption of traffic in the strait that handles around 20% of world oil and liquefied natural gas, the war has caused the biggest-ever global disruption of?oil? and gas?supplies. Since the Iran War began on February 28, 20,000 seafarers, including tankers and other vessels, have been trapped?inside of the Gulf. Source, who declined to be named due to the sensitive nature of the issue, stated that Iran may be willing to allow ships to use the other side in Omani waters, without interference from Tehran. The source did not specify whether Iran would agree to remove any mines that it might have placed in the water, or if all ships would be allowed free passage - including those linked to Israel. The source said that Washington's willingness to meet Tehran's demands was a key condition for any possible breakthrough in the Strait of Hormuz. The White House did not respond to a comment request immediately. Reporting by Parisa hafezi in Dubai, Jonathan Saul in London and Steve Holland in Washington. Editing by Nia William.
-
Kalshi expands its prediction hub to include more commodities amid high volatility
Kalshi, a prediction markets platform, announced on Wednesday that it has launched a 'commodities hub', expanding its offering to include markets related to energy, metals, and agriculture. The launch comes at a time when the commodity markets are being roiled by geopolitical conflicts, such as the U.S./Israeli war against Iran, and the disruptions that followed in the Strait of Hormuz as well as inflation uncertainty. Oil prices have been trading around $100 per barrel and this has contributed to an increase in intrading on commodity-linked markets. Kalshi's expansion has added contracts for natural gas, coffee, sugar, corn and soybeans, wheat as well as nickel, diesel, and lithium to the existing markets?for oil benchmarks. These contracts allow users to make a bet on certain outcomes, like whether crude oil prices will rise above a certain level in a given period of time or if gold will close at a higher price. Investors have recently become more interested in the prediction market, which allows them to bet on real-world events. These include sports and politics as well as economic data and entertainment. Kalshi has said that it offers a continuous trading service, even outside of regular market hours, to attract institutional investors. The sector has been scrutinized for speculating on sensitive topics like elections and politics. Kalshi banned politicians and athletes last month from trading in their respective markets. The company wanted to avoid any scrutiny regarding possible insider trading. (Reporting from Prakhar Srivastava and Anirban SEN in New York, with editing by Sahal Muhammad)
-
S&P 500 reaches first intraday record since US-Iran War
S&P 500 reached an intraday high on Wednesday. It was its first since the U.S. - Iran conflict began. Investors were drawn back into risky assets by expectations of a de-escalation and a robust outlook for earnings. The market's willingness to accept less severe risks of escalation, at least for the short term, was evident when traders reached a "new record" during an active "geopolitical crisis". After weekend talks in Islamabad failed, U.S. president Donald Trump said that talks with Iran could resume soon and lead to a 'deal. When hostilities broke out last month, equity markets fell sharply. This unleashed a historic shock on oil markets. It also rekindled concerns about inflation and future interest rates in the United States. S&P 500 fell as much as 9 percent after the conflict began on February 28. This did not confirm a correction. Both the Nasdaq and the Dow Jones Industrial Average confirmed a correction. A correction is defined as a closing index that is at least 10% lower than a recent high. The markets have also been boosted by expectations of a robust corporate earnings season. The U.S. consumer remained resilient despite oil shocks, according to executives at the big banks. They also said that the pipeline of deals and IPOs was robust. According to data compiled?by LSEG, analysts expect S&P500 companies to earn a total of $605.1 billion in the first quarter of this year. This is up from the $598.7 predicted at the beginning of the quarter. Many?brokers have seen the sale as a chance to buy equities for a bargain, as the conflict has brought the?values down to a more reasonable level. The prospect of a'renewed escalation' in the conflict is still looming, and any flare-up will likely test the recent confidence on the market. Even if geopolitical risks fade, fears that were prevalent before the war may reappear, notably those about disruptions linked to artificial intelligent. The private credit industry has also had to deal with the redemption risk of investors who are nervous and want to exit. (Reporting and editing by Shilpa Majumdar in Bengaluru, with Niket Nishant from Bengaluru)
-
Urals oil price rises in Russian ports due to strong demand and lower freight
According to calculations, the discount for Russian Urals Oil on a FOB Basis for cargoes that?load from the Baltic Port of Primorsk in the month of April?was reduced to $15-$17 a barrel against dated Brent, from $24-$27 a barrel?in the second?half?of March. This was due to falling freight rates which reduced the?costs to Russian sellers. LSEG data show that the urals price in Russian ports has remained at a 12-year high of $100 per barrel. This is due to strong Brent prices and a combination of softer freight rates, firmer premiums, and strong premiums, which are boosting Russian producers' revenues. On Monday, the price of 'physical crude oil cargoes' for immediate delivery to Europe reached a new record near $150 a barrel as global demand remained strong despite disruptions in supplies caused by the U.S./Israeli war against Iran. Three sources confirmed that the premiums for Russian Urals oil in India remained unchanged despite the expiration of U.S. waivers. They added that lower freight rates helped sellers increase their profits. The sources stated that premiums for Urals oil delivered into Indian ports are $7-$9 above Brent on a DAP basis (delivered to port), in line with the estimates of April-loading cargoes, which were sold after the recent rise in price. Prices vary depending on the deal terms and seller. Last week, freight rates dropped to $18-19 million for a Suezmax journey from Russian Baltic ports into India. The cost of shipping Aframax from Primorsk, Russia to India fell to around $16 million, down from $20 million last month. The International Energy Agency reported that Russia's crude oil and refined product revenues rose in March. They had fallen to their lowest level since the beginning of the Ukraine Conflict in?2022. This was due to the price spikes caused by the Iran War. The firmer Urals prices in Russian ports will continue to support?Moscow revenues for April. Indian refiners continue to?buy Russian oil for delivery in May, despite the expiration of the U.S. sanction waiver that allowed the purchase of Russian oil already at sea, traders reported.
-
Jordan, UAE sign $2.3 billion Aqaba rail project deal
State news agencies from both Jordan and the United Arab Emirates reported that they signed an agreement on Wednesday to start a $2.3 billion rail line to 'Aqaba Port' and to form a joint venture to build and run it. The agreement relates to?the construction of a 360-kilometre rail?linking mining areas in Jordan, Al-Shidiya & Ghor Al-Safi with its port of Aqaba. The project will?transport 16 metric tons of phosphate and potassium?annually with an investment totaling $2.3 billion. The UAE's official news agency said that the UAE-Jordan Railway Company is a joint venture of?several Jordanian stakeholder and L'IMAD Holding Company, Abu Dhabi's new sovereign wealth fund. According to the Jordanian State News Agency, the project is the first step to building the Jordanian National Railway?Network Project to connect 'Aqaba to neighboring Arab countries and to link it with ports in Syria and the Mediterranean.
As the Middle East conflict escalates, airlines cancel flights
The global air travel industry is still severely affected by the Iran war, which forced the closure of key Middle Eastern hubs such as Dubai, Doha, and Abu Dhabi. This left tens and thousands of passengers stranded and disrupted thousands of flights.
The following is a list of the most recent flights by airline alphabetically:
AEGEAN AIRLINES
The largest airline in Greece has suspended all flights from and to Tel 'Aviv, Beirut and Erbil until the morning arrivals on March 10. Flights to and from Dubai, Abu Dhabi and Riyadh will be suspended until the evening arrivals on March 6 and flights from Riyadh, Jeddah, and Riyadh until early morning arrivals on March 7.
AIR BALTIC
AirBaltic, a Latvian airline, said that all flights from and to Tel Aviv have been cancelled until March 9. AirBaltic said that all flights to and out of Tel Aviv have been cancelled until March 9.
AIR CANADA
The Canadian carrier plans to resume flights on March 23, after suspending all flights until March 22, to and from Dubai, Tel Aviv and the Middle East.
AIR EUROPA
Spanish Airlines has canceled all flights to Tel Aviv from March 9 until now.
AIR FRANCE KLM Air France cancelled flights from and to Tel Aviv, Beirut and Dubai until?March 8, and to and fro Riyadh and Dubai until March 6. This includes a flight departing from Dubai on the 7th of March. KLM announced that flights from and to Dubai, Riyadh, and Dammam have been suspended until March 8 and flights from and to Tel Aviv for the rest of winter.
CATHAY PACIFIC
Hong Kong Airlines has cancelled all flights from and to Dubai, and to and Riyadh through March 14.
The U.S. airline has cancelled flights between New York and Tel Aviv until March 22, as well as Tel Aviv and New York.
EL AL ISRAEL AIRLINES
El?AL and Sundor flight to and from Israel have been cancelled until 2?a.m. Local time on March 8.
EMIRATES
The UAE airline announced that it would operate a reduced schedule of flights until further notice.
ETIHAD AERWAYS
The UAE carrier suspended all commercial flights from and to Abu Dhabi until 3:00 PM GMT on March 6th.
FINNAIR
The?Finnish airline has cancelled Doha flights and Dubai flights up until March 29, and is avoiding airspace in Iraq, Iran Syria and Israel.
British Airways, owned by IAG, has announced that flights to Tel Aviv have been cancelled until March 9, and that flights to Amman Abu Dhabi, Bahrain Dubai Doha, Doha, Doha, Doha, Doha, Doha, Doha, Doha, Doha, Doha, Doha are cancelled up to March 7. There is a reduced schedule for Larnaca.
Iberia Express is IAG's low cost airline that has cancelled all flights from and to Tel Aviv until March 10.
ITA AIRWAYS
ITA Airways has extended the cancellations of flights to and from Tel Aviv till March 22. Dubai cancellations were extended until March 10.
JAPAN AIRLINES
Japan Airlines has suspended flights between Tokyo and Doha scheduled for February 28 through March 14, as well as Doha-Tokyo until March 15.
All flights to and from Tel Aviv have been cancelled by the Polish airline until March 18. The airline also cancelled flights from Riyadh to Dubai and Dubai to Riyadh.
LUFTHANSA GROUP
The German airline group that includes Lufthansa and Austrian Airlines as well as Swiss, Brussels Airlines and Swiss Airlines suspended flights from Tel Aviv to Beirut until March 28, and Amman to Erbil by March 15. Tehran flights were suspended until April 30, and Dammam, Dubai, and Abu Dhabi flights were suspended until March 10. Flights from Larnaca to?on March 7 will resume.
MALAYSIA AIRLINES
Malaysia Airlines has suspended all flights from and to Doha until 7 March. The Malaysian carrier temporarily resumed its return services from and to Jeddah, Madinah between March 4 and 8.
NORWEGIAN AIR
The Nordic airline will fly to Tel Aviv from June 15 instead of April 1, and to Beirut on April 4.
PEGASUS
Turkish Airlines has cancelled all flights to Iraq, Jordan, and?Lebanon up until March 6, and flights to Iran till March 12.
QATAR AIRWAYS
The airline said that it has suspended flights from and to Doha because of the closure of Qatari aviation.
SINGAPORE Airlines
Singapore Airlines has cancelled all flights from and to Dubai through March 7. Scoot, its low-cost carrier, cancelled flights from and to Jeddah until March 7.
Turkish Airlines has cancelled flights from and to Bahrain, Iran and Iraq, Jordan, Kuwait and Lebanon, Oman and Qatar, Syria, the UAE and Dammam, as well as to and from Saudi Arabia.
WIZZ AIR This low-cost carrier suspended flights from and to Israel, Dubai Abu Dhabi, Amman and Abu Dhabi until March 15. Flights from Jeddah to Medina and back will resume on March 8. (Compiled by Josephine Mason and Jamie Freed; reporting by bureaus. Editing by Barbara Lewis and Louise Heavens; Christian Schmollinger; Matt Scuffham; and Milla Nissi Prussak.
(source: Reuters)