Your next holiday just got more expensive. Air NZ increases airfares by up to $90

Tuesday, 10 March 2026

Air New Zealand has increased its domestic fares by $10 one-way and its long-haul by $90.

Flying just got more expensive for New Zealand travellers — and a family of four heading overseas could now pay up to $720 more for flights.

Air New Zealand has increased its airfares due to a surge in jet fuel prices caused by the Middle East conflict, lifting economy fares by $10 one-way on domestic routes, $20 on short-haul international flights, and up to $90 on long-haul trips.

On Tuesday, a one-way economy class flight from Auckland to New York on March 30 was $3058. A flight to the Sunshine Coast was $888.

Domestically, a seat-only flight from Auckland to Rotorua on March 30 starts from $159. Blenheim to Wellington, the shortest route in New Zealand, was $145 one-way.

The airline’s update to the New Zealand Exchange (NZX) on Tuesday, goes some way to explain its increases.

Air New Zealand previously forecast jet fuel would average about US$85 a barrel, but prices have recently surged to between US$150 and US$200 per barrel.

Air NZ said it may need to take “further pricing action” and adjust its network and schedule as required.

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It said it was also progressing ongoing cost reduction initiatives, which it expected to partially offset the cost pressures.

When asked what cost-cutting measures the airline was making and what future pricing action it might take, Air New Zealand said it had nothing further to add to the market release at this stage.

Simon Wallace, chief executive of the Aviation Industry Association, called it a “very serious situation” affecting the entire aviation industry, which is heavily reliant on fuel.

Just as you might shop around for the cheapest petrol for your car, take fewer trips to the shops, or work from home, airlines need to make similar considerations. Fuel is one of their biggest costs, along with staffing and maintenance.

Sounds Air managing director Andrew Crawford said fuel prices had jumped 95 cents per litre overnight on Monday, adding about $140,000 a month to the airline’s costs.

The Marlborough-based carrier had already raised prices.

“We just can’t absorb that sort of price rise. It’s a very difficult situation.”

Sounds Air says price increase of fuel has added $140,000 a month to its costs

Air Chathams chief executive Duane Emeny called the 95-cent increase “very significant”.

“It would add $3 million to our annual fuel bill, or $250,000 per month.”

Both airlines said they may have to reduce flights, while Originair said it was considering its options.

“There’s no shortage of people flying. That is not the problem,” Crawford said.

“We’ve got a very loyal customer base. The issue, as always, is costs.”

Barrier Air chief executive Grant Bacon said his airline had also raised fares, but the increases still did not cover the “huge cost” of fuel.

“Hopefully we see some relief soon, but I am not confident that this will be the reality.

“What we need is immediate relief from some government costs, such as Airways charges and CAA levies. This would provide some margin that we can then deploy towards our fuel bill in order to maintain full operations to our remote regional communities.”

During the pandemic, a pause was put on the levies paid to the Civil Aviation Authority, which Wallace said is 90% funded by airlines.

He said CAA levies were tens of millions of dollars for Air NZ alone, which he compared with Air NZ’s $59 million loss.

“That would provide relief to them, but also to smaller airlines.”

Regional airlines, with their smaller planes, are more vulnerable to fuel fluctuations because they have fewer passengers to spread the costs across.

All the airlines, including Air New Zealand, have indicated that if the conflict continues to push up oil prices, the cost of flying — both within New Zealand and overseas — is likely to rise.