A SURGE in fuel prices due to the Middle East conflict has resulted in a major airline axing five per cent of its flights.
Air New Zealand announced that it will be cutting back on flights over the next two months.
Chief Executive of Air New Zealand Nikhil Ravishankar said the airline would see roughly a five per cent reduction in its services.
And that this would continue until the beginning of May 2026.
This reduction equates to around 1,100 flights which in turn will affect 44,000 passengers out of its 1.9million.
Talking to 1News Nikhil Ravishankar explained: “We’re focused on consolidating flights that are off-peak flying hours, for example, or where there is an alternative that we can re-accommodate customers.”
He later added that the, “interventions we’re putting in place are not only reasonable, but are what all airlines around the world are doing”.
Air New Zealand said that most of the passengers affected would be moved onto other flights.
The airline has not provided a list of affected flights, but some officials in New Zealand have revealed domestic routes have been altered.
Mayor Nadine Taylor said that Air New Zealand intends to reduce its routes from Marlborough to Wellington, with Auckland and Christchurch flights also affected
The airline detailed that fewer long-haul flights would be cut.
MR Ravishankar said: “People want to get to Europe still, and over the US airspace we can get them into Europe, and that’s what we’re focused on doing.”
The announcement comes shortly after Air New Zealand increased its prices in response to the rising cost of fuel.
Domestic flights were going up by $10 (£4.37) one way, short haul by $20 (£8.74), and long haul $90 (£39.35).
Due to the ongoing US-Iran conflict, the cost of jet fuel has risen significantly.
Before the conflict, prices were around $90 (£67) per barrel and have since increased to as much as $200 (£149) per barrel.
As a result, it’s not just Air New Zealand that has increased its ticket prices – other airlines like Qantas and Scandinavia’s SAS have done the same.
However, some airlines like Ryanair, easyJet, British Airways and Virgin Atlantic, are less affected because they have secured some of their fuel at fixed prices for a set amount of time.
Ryanair boss Michael O’Leary said the rise in jet fuel “won’t affect our costs and it won’t affect our low fares”.
It’s not just flights that are affected. Places like the Balearic and Canary Islands are warning of a rise in the cost of food and drink.
And here’s why you should book a holiday now, as Iran crisis makes it more expensive.