Air NZ fare rise

[MotherBear]

Long-haul flyers next for fare rise
5:00AM Tuesday March 18, 2008
By Grant Bradley

Soaring fuel costs mean Air New Zealand long-haul travellers face the prospect of higher fares after a 3 per cent increase in domestic, transtasman and Pacific Island ticket prices.

Air New Zealand's group general manager of short-haul airlines, Bruce Parton, said the airline was not ruling out further price rises if fuel costs did not drop.

"We don't have an indication on what we're likely to do - it's quite complex obviously."

An announcement is due within a fortnight but as fuel makes up 50 per cent of the cost of a long-haul flight as opposed to about 24 per cent of a domestic flight, increases are likely.

Yesterday, the airline announced increases of $10 on each short-haul international leg and 3 per cent on domestic flights. They will apply to travel booked after March 26 but special discount fares, such as $1 grab-a-seat deals, are not affected.

More here .