Air NZ signals fare increases, pulls earnings outlook, amid volatile jet fuel prices

Tuesday, 10 March 2026

Air New Zealand has pulled its earnings guidance and signalled fare increases, pointing to what it describes as extreme volatility in global jet fuel markets.

The airline says higher fuel costs are expected to have a significant effect on its earnings for the second half of the financial year.

After already introducing some fare increases, Air New Zealand says additional price rises could be required. The airline also warned its flight network may need to be adjusted if the conflict continues to push jet fuel prices higher.

Air New Zealand’s share price fell close to 8% on Monday.

Oil prices have also surged, rising about 8% to around US$99.90 a barrel. During overnight trading they briefly reached US$119.50 a barrel — the largest one-day jump in absolute terms on record.

Reuters reports that jet fuel prices in some markets have doubled since the conflict began, creating fresh pressure for airlines already rerouting flights away from the Middle East while helping thousands of passengers leave the region.