Inflation and unstable jet fuel prices are continuing to up global airfares.
The price of flying Air New Zealand’s international routes has increased by about five per cent says Air New Zealand chief customer and sales officer Leanne Geraghty.
“There are a range of factors that come into play when it comes to our fare prices, including length of flight, fuel prices, the aircraft and the amazing teams who work hard to get our customers safely to their destination,” says Leanne.
“Due to the rising cost of fuel and the added impacts of inflation generally across all parts of business, we had to review our pricing. Unfortunately, Air New Zealand cannot absorb these increases and so airfares on international routes increased accordingly by circa five per cent.
“We're continuously monitoring our cost base and market conditions to ensure we can make our services commercially viable, while also focusing on offering Kiwis competitive airfares.”
Jet fuel’s impact
According to International Air Transport Association data, global jet fuel prices have significantly increased since February – coinciding with the Russian invasion of Ukraine on February 24.
The data shows Oceania and Asia jet fuel prices have increased 68.3 per cent since last year, and global prices have increased 74 per cent.
However, Oceania and Asia Jet fuel prices have decreased 21.2 per cent compared to the same time last month. Global prices are also trending downwards when compared to last month, with a 19.9 per cent decrease.
IATA director general Willie Walsh has stated that while jet fuel costs remain unstable, consumers can expect to absorb the cost.
Demand remains
Leanne says demand for Air New Zealand’s domestic and international network is increasing as people start to travel again and take advantage of open borders.
“With the increased demand, it’s still important that we can continually offer low airfare options throughout the country, that’s why currently there are more than 100,000 New Zealand airfares under $100 available to book,” says Leanne.
“We work hard to ensure we can carry as many customers as possible at affordable fares while also covering the operating cost of the flight.
“In popular periods, we will strive to add additional flights so more people can travel and we can try to keep fares as low as possible. Recently we did this when borders opened to Australia in April and the airline added more than 90 extra flights with an additional 20,000 seats.”
