Air New Zealand has announced a range of pricing and capacity changes in response to the continued high cost of fuel and changes in demand.“The airline industry faces sizeable challenges in this rapidly changing economic environment and we continue to review all aspects of our business including fares, network and costs,” said Air New Zealand Chief Executive Officer Rob Fyfe.

“With jet fuel remaining at very high levels it is critical we adapt our business in response, including fare adjustments to recover these significantly increased operating costs.”

The price of domestic airfares will rise by an average 4% as will international airfares sold in New Zealand, Australia and the Pacific Islands. Domestic and short haul international increases are effective from 16 June with long haul expected from 20 June.

Air New Zealand will also make a number of tactical network changes including reducing services by one per week between Japan and New Zealand during the lower demand months of September, October and November. It will also remove the two-times per week Auckland-Hong Kong service operated seasonally during December and January.
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