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Air New Zealand Cuts Flights and Hikes Fares as Fuel Prices Surge

The airline said the cuts affect 4% of flights and 1% of passengers as jet fuel costs more than double usual levels.

  • Air New Zealand announced further domestic flight reductions and fare increases on Tuesday to offset surging jet fuel costs, with customer notifications beginning from Tuesday morning.
  • Global jet fuel prices have more than doubled since the US-Israel-Iran War began this year, with benchmark European costs reaching $1,838 per tonne compared to $831 before the conflict.
  • The May and June schedule adjustments affect 4 percent of flights and 1 percent of passengers, consolidating services across Nelson, Tauranga, Auckland, Wellington, and Christchurch.
  • Nelson Mayor Nick Smith cited tourism concerns, while Tauranga MP Tom Rutherford urged residents to contact the airline directly; Air New Zealand said the "vast majority" of affected customers receive same-day rebooking.
  • Jet fuel typically accounts for 20-40 percent of airline operating costs; while British Airways has locked in pre-war prices, Air France-KLM and Cathay Pacific are raising fares to manage volatility.
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Reuters broke the news in United Kingdom on Monday, April 6, 2026.
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