Updated Travel Advisories for Australians
Australians planning to travel to the Middle East have received updated travel advice following a significant development in the region. US President Donald Trump has announced a peace deal with Iran, which has led to a reduction in travel warnings for several countries. The changes came into effect on Wednesday, with warnings for Bahrain, Israel, Kuwait, Qatar, and the United Arab Emirates (UAE) being lowered from ‘Do Not Travel’ to ‘Reconsider your need to travel’.
Despite this adjustment, some areas within Israel remain under the ‘Do Not Travel’ advisory. Foreign Minister Penny Wong emphasized that the Albanese Government’s top priority is the safety and security of Australians. She welcomed the agreement between the United States and Iran and encouraged all parties to continue pursuing peace through dialogue and diplomacy.
The peace deal follows four months of intermittent conflict in the Middle East, which was triggered by US and Israeli strikes against Iran in late February. An official signing ceremony is scheduled to take place in Switzerland on Friday.
Security Concerns Remain
Ms Wong warned that security in the Middle East could deteriorate rapidly with little warning. She stated that the Department of Foreign Affairs and Trade (DFAT) has assessed current conditions in Bahrain, Israel, Kuwait, Qatar, and the UAE as appropriate to move to Level 3. However, she reiterated that Level 3 remains a high threshold and urged Australians to postpone non-essential travel.
The ‘Reconsider your need to travel’ advisory also applies to transit. The government advises travelers to keep their visits as short as possible and avoid unnecessary activities. Travelers are advised to check Smartraveller for up-to-date information, as advice levels could be raised again if conditions worsen.
Wong also reminded Australians planning to travel to ensure they have travel insurance and to carefully read the Product Disclosure Statement (PDS) for coverage details.
Ongoing Advisories
DFAT continues to advise ‘Do Not Travel’ to Iran, Iraq, Lebanon, Palestine, Syria, and Yemen. The ‘Reconsider your need to travel’ advisory remains in place for Jordan, Oman, and Saudi Arabia.
Impact on Travel Industry
The developments appear to be a positive sign for the travel industry, particularly for Flight Centre Travel Group. On Wednesday, the company downgraded its earnings forecast for the current financial year due to the Middle East conflict. The company, which operates in Australia, New Zealand, South Africa, Canada, and the UK, now expects an underlying profit before tax between $275 million and $295 million for 2025-26.
Previously, it had forecast an underlying result between $310 million and $345 million, compared to the prior year’s $286 million result. Managing Director Graham Turner explained that the decline was driven by an external shock—the Middle East conflict disrupting peak leisure travel—not by a deterioration in the company’s business.
Flight Centre said the conflict primarily affected its fourth quarter leisure travel market, with earnings expected to fall by about $50 million. The company cited cancellations and booking deferrals, weaker long-haul bookings, and a shift to lower-margin routes.
Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25, according to Mr. Turner. He added that the new peace deal between the US and Iran will provide a clearer runway into 2026/27 and a ‘significant earnings tailwind’.
Flight Centre also announced an up to $200 million on-market share buyback, following its last one completed in May. Mr. Turner said the buyback reflects the company’s belief that its shares, which closed on Tuesday at $11.81, are undervalued.
