11 Mar 2011

Air NZ blames fuel price for fares increase

1:16 pm on 11 March 2011

Air New Zealand is increasing domestic and international fares.

The airline says that over the past month the price of jet fuel has gone up from $US114 a barrel to $US130 a barrel, and that has added hugely to its operating costs.

Air New Zealand says domestic airfares and long-haul fares will increase by an average of 7% and fares to Australia and the Pacific Islands by about 8%.

The increases will take effect from 18 March.

Australia's national carrier Qantas has lifted its international fuel surcharges for the second time in a few weeks.

Passengers travelling to Europe from 17 March will pay an extra $A45 for a one-way ticket.