Air New Zealand raises fares as fuel price climbs

Air New Zealand is to raise its base domestic fares between the main centres by 17 per cent in response to the rapidly rising cost of fuel.

International fares will also rise. The increases are the second in a month by the national carrier.

Domestic and short-haul international fares to Australia and the Pacific islands would rise an average of 7 per cent. Long-haul fares will go up an average of 8 per cent.

However, the cheapest domestic fares between Wellington and Auckland would increase by $10 to $69 one way.

An Auckland-to-Sydney "works fare" goes from $250 to $269 one way. And a return economy ticket to London is to cost $400 more.

Air New Zealand said the cost of jet fuel had risen 14 per cent in the past month to US$130 (NZ$175) a barrel, adding almost US$10 million a month to its operating costs.




By
Neha Jain

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Qantas also said this week that it would increase fuel surcharges on international flights again on tickets issued on or after March 17.

The airline said oil and fuel prices were an increasing concern for the aviation industry and its surcharges would not recover the full impact of the latest oil and fuel prices.