Source: Radio New Zealand
The price of jet fuel has been fluctuating wildly since the conflict in the Middle East broke out. File photo. 123rf.com
The price of flying has already gone up – and could take off again if the conflict in the Middle East continues.
Air New Zealand raised its fares this morning, and said it could be forced to raise them again and review routes.
It is all connected to the price of aviation fuel and the critical Hormuz Strait, a shipping route for up to 20 percent of the world oil which is essentially closed due to the conflict in the area.
The price of jet fuel has been fluctuating wildly since the conflict broke out, and has at times gone up more than 120 percent.
Regional carrier Chathams Air said the war in the Middle East could add more than $1.6 million to its annual fuel bill if it continues.
It said the airline could also be forced to look at prices and schedule cuts.
Travel agent Vincent George told Checkpoint the price increase was not only to do with fuel costs, but also supply and demand.
“With the demise of some of the airlines travelling through the Middle East, which were some of the hugest carriers out of New Zealand, Qatar and Emirates, then we’re looking at people travelling on other routes.
“As these routes get taken up and the capacity gets lower not only is the airfare going to increase a little because of aviation fuel, but also because of supply and demand.”
George said travellers hoping to visit the Northern Hemisphere should book their flights as soon as possible to avoid any further price increases.
While many of Emirates flights were now travelling through the Middle East, he said flights stopping over in China and other Asian countries had seen increased demand.
The other option for travellers leaving New Zealand and heading to the Northern Hemisphere is stopping over the US.
“I think that people are maybe looking at going, those who want to travel, those who need to travel, will be looking at different options for a while yet.”
Various airlines have raised their prices due the rising cost of fuel.
Singapore Airlines raised fares to Europe by $140 for a return ticket this morning.
George said while booking with a client today, he noticed a flight to the Cook Islands from New Zealand had also risen by $200.
“Things are certainly looking as though they may be creeping up… $200 on a South Pacific airfare is significant.”
But George said a key concern was how domestic flights would be impacted by the fallout of rising costs.
“I’m worried about connectivity from the smaller outlying destinations.
“I can see that domestic travel is going to be really pricing itself out of the market for the leisure traveller.”
He said the best way to guarantee an affordable domestic flight was to book as far in advance as possible.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
