Air NZ raising prices

[MotherBear]

Air NZ lifts fares as cost of fuel soars
5:00AM Wednesday November 14, 2007
By Grant Bradley



Air New Zealand has pushed up international economy fares by up to $50 as soaring fuel prices hammer airlines around the world.

Passengers on Air New Zealand now pay $10 more each way on transtasman and Pacific routes and around $50 more on long-haul economy fares as world oil prices near historic highs.

All airlines have been pummelled by rising aviation fuel prices which cause costs to rise by around US$500 million globally for every US$1 increase in the price of oil.

While oil fell to US$94.45 a barrel yesterday, Opec is likely to announce this weekend that production will not be increased, suggesting oil prices are likely to stay around US$100 a barrel.

British Airways announced yesterday it was raising its long haul ticket prices by up to $40 to cover fuel costs and in the past week KLM Royal Dutch Airlines and Lufthansa have announced fare increases of around $20 on intercontinental flights. Air New Zealand, which also blames fare rises on increased airport charges and labour costs, said every US$1 increase in oil prices adds another US$11 million to running costs.

More here .

[KiwiHopeful]

I smell bull puckey ...

I wish I could find the link to an article I read last week. The essence of it was that while oil prices have tripled when measured in US currency, they've only doubled when measured in Euros over the same time period (it may have been the past five years or so).

My question is, which currency is Air NZ using to purchase oil?