Air NZ hikes fares as oil prices rise

Air New Zealand will increase all domestic and international airfares by 10 percent in response to rising jet fuel prices. The airline said the airfare hike will be effective from May 1.

Chief financial officer Rob McDonald said fuel is now the airline’s number one cost.

“We regret having to increase fares but the numbers are stark,” Mr McDonald said.

“The price of benchmark Singapore Jet Fuel has more than doubled from around $40 in April, 2004 to $89 a barrel today.”