Rising jet fuel prices are pushing up airfares across New Zealand and international routes, but airlines cannot rely on passing those costs on to customers indefinitely, says Aviation Industry Association New Zealand chief executive Simon Wallace.
Commenting in response to new analysis showing Air New Zealand fares up sharply year‑on‑year, Wallace warned that customer resistance to further price increases is growing. As fares rise, travel becomes unaffordable for many, dampening demand, discouraging discretionary travel, and placing pressure on the wider economy.
Simon said the impact of sustained high fuel prices is being felt most acutely by regional airlines and flight training organisations, which have fewer options to absorb cost spikes. He noted that simply hoping for geopolitical stability and lower fuel prices is “not a strategy”.
AIANZ is working closely with the Ministry of Transport on an aviation‑specific fuel response plan aimed at improving resilience across the sector, with options expected to be considered in the coming weeks.