New Zealand's biggest travel agency believes an increase in airfares will not hurt its business.
Air New Zealand has announced that higher fuel prices have forced it to raise domestic and long-haul fares by 7% and Pacific fares by 8%. Qantas is also raising fares.
But Flight Centre says that despite the rise, airfares are still at historic lows and the company is still seeing strong demand, especially out of Christchurch.
It says deals and discounts by airlines and travel agents make up for the price rise.
Farming and plastics manufacturer Gallaghers is looking at ways to make its local business more efficient following the fare rise.
Gallaghers makes about 90% of its products in New Zealand for the export market.
Spokesperson Brent Dawson says it is looking at making its local operations more efficient to avoid price increases.
