The price of jet fuel has been fluctuating wildly since the conflict in the Middle East broke out. File photo. Photo: 123rf.com
The price of flying has already gone up - and could take off again if the conflict in the Middle East continues.
Air New Zealand raised its fares this morning, and said it could be forced to raise them again and review routes.
It is all connected to the price of aviation fuel and the critical Hormuz Strait, a shipping route for up to 20 percent of the world oil which is essentially closed due to the conflict in the area.
The price of jet fuel has been fluctuating wildly since the conflict broke out, and has at times gone up more than 120 percent.
Regional carrier Chathams Air said the war in the Middle East could add more than $1.6 million to its annual fuel bill if it continues.
It said the airline could also be forced to look at prices and schedule cuts.
Travel agent Vincent George told Checkpoint the price increase was not only to do with fuel costs, but also supply and demand.
"With the demise of some of the airlines travelling through the Middle East, which were some of the hugest carriers out of New Zealand, Qatar and Emirates, then we're looking at people travelling on other routes.
"As these routes get taken up and the capacity gets lower not only is the airfare going to increase a little because of aviation fuel, but also because of supply and demand."
George said travellers hoping to visit the Northern Hemisphere should book their flights as soon as possible to avoid any further price increases.
While many of Emirates flights were now travelling through the Middle East, he said flights stopping over in China and other Asian countries had seen increased demand.
The other option for travellers leaving New Zealand and heading to the Northern Hemisphere is stopping over the US.
"I think that people are maybe looking at going, those who want to travel, those who need to travel, will be looking at different options for a while yet."
Various airlines have raised their prices due the rising cost of fuel.
Air New Zealand was raising one-way economy fares by $10 on domestic routes, $20 on short-haul international services and $90 on long-haul flights, with further price, network and schedule changes possible if jet fuel costs remain elevated, according to a Reuters report. It also reported that Qantas was increasing international fares, and was exploring options to redeploy capacity to Europe as airlines seek to evade disruptions in the Middle East.
Hong Kong Airlines said on its website it would raise its fuel surcharges by up to 35.2 percent from Thursday, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal where charges will rise to HK$384 from HK$284.
Cathay Pacific said it reviewed its fuel surcharges on a monthly basis. It kept them flat last month at US$72.90 each way on flights between Hong Kong and Europe and North America before the conflict began.
According to Reuters, Vietnam Airlines had asked local authorities to remove an environmental tax on jet fuel to help it maintain operations. The Southeast Asian nation's government said Vietnamese airlines' operating costs have risen 60 percent to 70 percnet due to the rise in jet fuel prices and fuel suppliers were facing difficulties in meeting airline demand.
Singapore Airlines raised fares to Europe by $140 for a return ticket this morning.
George said while booking with a client today, he noticed a flight to the Cook Islands from New Zealand had also risen by $200.
"Things are certainly looking as though they may be creeping up... $200 on a South Pacific airfare is significant."
But George said a key concern was how domestic flights would be impacted by the fallout of rising costs.
"I'm worried about connectivity from the smaller outlying destinations.
"I can see that domestic travel is going to be really pricing itself out of the market for the leisure traveller."
He said the best way to guarantee an affordable domestic flight was to book as far in advance as possible.
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