2344 GMT - UBS highlights a risk that investors have too narrowly focused on the Middle East conflict's impact on airlines in Australia and New Zealand. The bank highlights that Australia's macro context has incrementally worsened, too. Headwinds include higher inflation, rising interest rates, weaker consumer and business sentiment. These may cause a cyclical movement of the demand curve, UBS says. "We think this type of macro scenario poses a greater risk for Jetstar than the other brands," says analyst Andre Fromyhr. It could explain why capacity at Qantas-owned Jetstar in the December half was lower than a year ago when "not long ago we would have expected Jetstar to grow faster than the other domestic brands," UBS says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

June 15, 2026 19:44 ET (23:44 GMT)

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