Soaring Fuel Prices Prompt Air New Zealand to Hike Fares

Air New Zealand is planning to hike its fares on its domestic flights and Australia and the Pacific Island services by 3%, effective March 26, 2008, due to rising fuel costs, reported media sources.

The airline has said that long-haul fare increases will likely be announced within the next two weeks.

Media sources quoted Bruce Parton, general manager of Air New Zealand, as saying: “When domestic fares were last increased due to fuel costs in May 2006, the price of Singapore jet fuel per barrel was $87. Today it has reached $130 with a $10 increase in the past month alone. This recent price escalation has left Air New Zealand with little option but to increase fares.”