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

Melburnian1

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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'm actually interested in the fuel situation, I have flight tickets to leave Australia on a longer trip mid-May, but from what I hear, some airlines are already planning to stop flying to AU because it's considered "high risk" due to it's fuel situation being so poor.

They are not yet stopping, but they are planning to within weeks, simply because they can't guarantee having enough fuel to get back to home ports. At the moment these are just rumours, but it's pretty scaring not even knowing if there even will be flights back, regardless of the cost.

Apparently the petrochemicals coming out of the straight are more tilted towards kerosene and refinement of it, and while the government might want to ensure there is at least enough diesel, I'm not sure they are able to for jet fuel.

I also heard Sydney Airport has been saying to airlines they can't guarantee fuel supplies even to the end of April.
 
I'm actually interested in the fuel situation, I have flight tickets to leave Australia on a longer trip mid-May, but from what I hear, some airlines are already planning to stop flying to AU because it's considered "high risk" due to it's fuel situation being so poor.

They are not yet stopping, but they are planning to within weeks, simply because they can't guarantee having enough fuel to get back to home ports. At the moment these are just rumours, but it's pretty scaring not even knowing if there even will be flights back, regardless of the cost.

Apparently the petrochemicals coming out of the straight are more tilted towards kerosene and refinement of it, and while the government might want to ensure there is at least enough diesel, I'm not sure they are able to for jet fuel.

I also heard Sydney Airport has been saying to airlines they can't guarantee fuel supplies even to the end of April.

If what you say is true, it demands significant coverage by mainsteam media such as 'The Australian' and various state-based papers.

Big news!
 
I don't think the situation is as dire as its made out to be. We are after all a country now sitting on one of the biggest LNG supply with Qatar cut off and lost ~20% capabilities even if they are restored. We just haven't pulled the political lever to play the barter game yet.

A lot of our jetfuel suppliers are also significant customers of our LNG. China has played games with our resources as well not that long ago and caved hard after suffering significant brownouts

I think if we hit that sort of critical level, we'll see the government pull levers to get supply through a lot of these channels.
 
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I don't think the situation is as dire as its made out to be. We are after all a country now sitting on one of the biggest LNG supply with Qatar cut off and lost ~20% capabilities even if they are restored. We just haven't pulled the political lever to play the barter game yet.

A lot of our jetfuel suppliers are also significant customers of our LNG. China has played games with our resources as well not that long ago and caved hard after suffering significant brownouts.

Let's hope you are correct.

Reports of graingrowers lacking sufficient diesel fuel for the planting season is nothing to do with aviation but is serious.

Given the current Federal government (and others prior to it) were warned about '30 days in reserve' not meeting the '90 day' favoured situation, it's poor that the PM hasn't 'pulled the political lever(s)'. He is going to Singapore for talks but given long lead times for tankers (shipping) to be booked and Singapore's own problems in securing the same amount of crude it normally processes each month, his travel may be too little, too late.
 
If what you say is true, it demands significant coverage by mainsteam media such as 'The Australian' and various state-based papers.

The government is clearly covering up the extent of the problems, because they have been caught with their pants down not having stockpiled even the minimum required fuels...

I don't think the situation is as dire as its made out to be. We are after all a country now sitting on one of the biggest LNG supply with Qatar cut off and lost ~20% capabilities even if they are restored. We just haven't pulled the political lever to play the barter game yet.

A lot of our jetfuel suppliers are also significant customers of our LNG. China has played games with our resources as well not that long ago and caved hard after suffering significant brownouts

I think if we hit that sort of critical level, we'll see the government pull levers to get supply through a lot of these channels.

I don't think our government is competent enough to do anything like that.

We need to make deals with;
- Singapore
- Malaysia
- South Korea
- Japan
- Also China

In order to get enough jet-fuel. Every other importer of it will be looking to do the same. Singapore also needs to look after their own local airline, and no doubt their imports of oil are disrupted also, so there's no reason to believe they can crank out enough jet-fuel, let alone increase production (compared to before).

Even if the war was to end tomorrow, that may not be enough to prevent a disruption to supply lasting 1-3 months.

I really believe this risk is being completely underestimated.
 
The government is clearly covering up the extent of the problems, because they have been caught with their pants down not having stockpiled even the minimum required fuels...



I don't think our government is competent enough to do anything like that.

We need to make deals with;
- Singapore
- Malaysia
- South Korea
- Japan
- Also China

In order to get enough jet-fuel. Every other importer of it will be looking to do the same. Singapore also needs to look after their own local airline, and no doubt their imports of oil are disrupted also, so there's no reason to believe they can crank out enough jet-fuel, let alone increase production (compared to before).

Even if the war was to end tomorrow, that may not be enough to prevent a disruption to supply lasting 1-3 months.

I really believe this risk is being completely underestimated.
And you threaten with cutting LNG supply to them who are already struggling with Qatar out of the picture? That doesn't just cripple aviation sector thats power generation.... There's very serious demand for our LNG right now globally.

Of course you'll put serious political and potential humanitarian strains on any relationship but if it gets to critical levels this is the sort of cards Australia can play.
 

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