International airfares rose 21.5% in the year to August, according to the latest Stats NZ figures, as fuel and aviation costs climbed.
Aviation Industry Association chief executive Simon Wallace said jet fuel prices driven by the Iran conflict were the main factor, with prices nearly back to March–April levels and double what they were in 2025. He said aviation system costs, including Civil Aviation Authority and airways levies and airport landing charges, had also risen well above inflation. Flights to Europe and Asia recorded the largest price increases, with Wallace noting that a third of New Zealanders travelling to Europe used Middle Eastern carriers such as Etihad, Emirates and Qatar, whose capacity had been affected by events in the region since February–March.
Despite higher prices, Stats NZ data showed New Zealand-resident traveller arrivals reached 3.09 million in the year ending July, up 32,000 on the previous year, although July arrivals alone were 317,000, down 5000 on the same month last year.
Travel Agents Association chief executive Julie White said demand remained healthy, with numbers back to 2019 levels and sales up around 1.5%, though transactions had softened as people looked for deals. She said travellers were turning to destinations such as the Cook Islands, where greater flight capacity and competition helped keep prices down, and were cutting costs elsewhere, such as choosing four-star hotels or apartments instead of five-star accommodation.
Passengers at Auckland International Airport told 1News they were also keeping costs down, including by staying with family.