Air NZ announce four percent fare hike
New 5:55PM Friday June 06, 2008

Air New Zealand today announced a range of fare hikes and route changes, mainly cutbacks, in response to the continued high cost of fuel and changes in demand.

The price of domestic airfares will rise by an average 4 per cent as will international airfares sold in New Zealand, Australia and the Pacific Islands.

Domestic and short haul international increases are effective from June 16 with long haul expected from June 20.

"With jet fuel remaining at very high levels it is critical we adapt our business in response, including fare adjustments to recover these significantly increased operating costs," chief executive Rob Fyfe said.

"The airline industry faces sizeable challenges in this rapidly changing economic environment and we continue to review all aspects of our business including fares, network and costs."

More here.