How much will the Iran-Israel/USA war cost Australia's major airports?

Melburnian1

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Jun 7, 2013
Posts
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Prior to 28 February 2026, international travel into and out of Australia was doing well, although inbound tourist numbers were still below 2019 levels.

Domestic air travel was doing OK, buttressed by special events such as 'ED' visiting, although there was occasional media comment that business travel still hadn't fully recovered. The latter wasn't surprising given low consumer confidence and often sky-high air fares from the cosy duopoly.

In March 2025, a year ago, Emirates carried more than 65,000 passengers inbound from the UAE or Singapore, plus another 7,000 from NZ.

Etihad carried more than 14,000 from the UAE.

Qatar Airways inbound (to Oz) passengers numbered more than 46,000.

These three carriers have dramatically reduced flight frequencies to/from Oz in March and April 2026.

On top of that, as discussed in another AFF open discussion thread, low cost carriers are mostly reducing flight frequencies to/from Oz.

QFi is trying to increase flights on some routes - FCO in Italy is a forthcoming example - but it lacks the fleet to do much of this.

Other major carriers such as SQ similarly can't increase frequencies unless they choose to devote a greater percentage of flying time/aircraft to Oz: possible, but unlikely.

Comsumer confidnce is at very low levels. This may not affect the AFFer audience but it means some Australians are starting to do the unthinkable and cancel planned international trips, driven just as much by the need to cut their household costs as it is by the Middle East war.

Australian airports are often owned by local superannuation funds and overseas pension funds, among others. None are listed on the ASX, except for Auckland airport that's not in Oz but very familiar to many here.

How much will airport inbound (and separately, outbound) passenger numbers fall due to the war?

Will airports here have strategies to find other revenue sources to make up any deficit?

Are any major airports highly geared?
 
I don’t believe jet fuel shortages have started to occur yet … if they do, that’s going to exacerbate things.
 
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