Air NZ to raise ticket prices, blames rising costs

Source: 1News

Rising fuel and other costs is prompting Air New Zealand to raise ticket prices.

The airline says it now costs twice as much to fuel a Dreamliner for an Auckland to LA trip than it did in 2020, leading to a "perfect storm" as demand increases and inflation bites.

"Other costs are going up too," said chief executive Greg Foran.

"This combined with high demand for flights, means you will see higher fares than usual across our network.

"We do our best to keep fares as low as we can. We have over 100,000 fares under $100 on our domestic flights over the next three months. And we are adding an extra 40,000 seats per week on our international network come July."

In March, the airline said fuel prices and inflation was leading to higher ticket prices on international flights - up to 5%.

Foran suggested trying to avoid peak travel times - by travelling in the middle of the day or looking a day or two either side of intended travel dates passengers may be able to find cheaper fares.

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He said 2000 staff had joined the airline in the last year, having made scores redundant at the start of the pandemic as international air travel shut down.

It was looking for another 1100 staff over the next few months.

The airline's now travelling to 19 international destinations, increasing to 27 by next month.