Iran War: Air NZ cancellations affect 44,000 passengers
Thursday, 12 March 2026
Air New Zealand passengers will find out on Thursday if their flights booked for the coming weeks and months will be cancelled as the airline responds to rising costs of jet fuel.
The airline plans to contact just under 44,000 affected passengers to inform them their flights are among 1100 services between mid-March and early May that are being cancelled. Air NZ is yet to specify which routes will be affected.
The airline is consolidating flights between March 16 and May 3 due to unprecedented volatility in jet fuel prices caused by conflict in the Middle East.
Most passengers who are affected will be rebooked on flights the same day as their original booking.
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Air NZ chief executive Nikhil Ravishankar said it would amount to about a 5% reduction in the number of flights it was planning to operate.
In that period the airline will carry 1.9 million passengers, so 44,000 passengers will be affected by flight cancellations.
An Air NZ spokesperson said the cancellations were “mainly in lower-demand or off-peak times”.
“In making these schedule changes we have tried to strike a balance between maintaining connectivity to all regions and our ability to re-accommodate passengers close to their original booking.”
All affected customers would be eligible for a refund or credit if they were unable to fly.
Consumer said passengers disrupted by Air New Zealand’s flight cuts were entitled to ask for a refund if they did not want to accept a replacement flight. “They can choose not to take it and ask for their money back instead,” said Jon Duffy, chief executive of Consumer.
When an airline cancelled flights due to events out of its control, like severe weather or airspace closure, passengers usually have to accept the disruption and wear any associated expenses or claim on their insurance, he said. But Consumer believes Air New Zealand’s cancellations were within its control, Duffy said.
“The decision to amend the flight schedules is driven by rising fuel costs. We think this is an operational decision, which means impacted passengers have rights if the rescheduled flight doesn’t suit them,” he said.
If a domestic flight was cancelled for a reason within an airline’s control and a passenger did not want to accept a replacement flight, they could ask for a refund under the Civil Aviation Act. They could also claim back additional expenses such as meals, accommodation and any other costs incurred in getting to their destination.
Air New Zealand was also likely to be liable for disrupted international flights under international laws, including the Montreal Convention. Because the airline’s flight cancellations were a financial decision, and the airline would struggle to show it took all reasonable measures to avoid the cancellations or delays.
Passenger rights for international flights differed depending on the destination and the airline flown on. “However, at a minimum, you’ll be entitled to a refund if you don’t want to accept the alternative flight that’s offered to you,” Duffy said.
“You may also be able to claim back any additional costs you incur. In total, the maximum amount you can claim for a delay under the Montreal Convention is $15,134 – this includes alternative flights to get you to your intended destination,” he said.
Ravishankar said he had spoken to “all regional mayors” about their concerns regarding regional services and has their support.
He said the airline was looking at reducing a small number of international services, but said US services were an important link to Europe, particularly while there were disruptions in the Middle East.
This week the airline suspended its earnings guidance and increased ticket prices to account for the rise in fuel costs. Domestic fares will increase by $10, short-haul international by $20 and long-haul by $90.
On Wednesday, Qantas and Jetstar confirmed they were increasing airfares due to a doubling in the cost of aviation fuel.
Last month, Air NZ announced a half-year after-tax loss of $40 million in the six months ending December, compared with a profit in the same period a year earlier of $98m.
The critical Strait of Hormuz, a shipping route for up to 20% of the world's oil, is essentially closed due to the conflict in the region.
Craigs Investment Partners portfolio manager Mo Singh said it was difficult to see the justification for the cuts at a time that aircraft were 85% full.
The economy was expected to start to fire up, Singh said, “which should see those load factors push even further”. The domestic network was also not short of aircraft.
“So it seems a bit odd, other than a pure money-saving exercise, at the cost of service levels for people being able to have choice. Ultimately, all that does is drive those other fares up because the available seats have fallen.”
House of Travel chief executive David Coombes said Air New Zealand’s decision to consolidate flights was a “pragmatic response to the reality of the conflict in the Middle East and the restricted flow of oil through the Strait of Hormuz”.
The price of jet fuel had doubled because a fifth of the world’s oil and natural gas was currently restricted at the source.