Source: Radio New Zealand
An Air Chathams plane. RNZ / Robin Martin
Regional airline Air Chathams has announced it is introducing a $20 fuel surcharge on all flights due to increased aviation fuel prices.
The announcement came a few hours after Air New Zealand raised its fare prices on Tuesday, adding it could be forced to raise them again and review routes.
In its statement, Air Chathams said aviation fuel prices in New Zealand “have risen significantly” due to the war in the Middle East.
The critical Hormuz Strait, a shipping route for up to 20 percent of the world oil is essentially closed due to the conflict in the region.
The price of jet fuel has been fluctuating wildly since the conflict broke out, and has at times gone up more than 120 percent.
Air Chathams’ $20 charge will be added to ticket prices at the time of booking but will not apply to existing fares.
“This surcharge will be reviewed regularly and will be removed once fuel prices return to more normal levels,” the airline said.
Air New Zealand was raising one-way economy fares by $10 on domestic routes, $20 on short-haul international services and $90 on long-haul flights, with further price, network and schedule changes possible if jet fuel costs remain elevated, according to a Reuters report.
The national carrier has suspended the earnings guidance it issued less than two weeks ago because of what it said was unprecedented volatility in jet fuel markets.
The airline expects a meaningful impact on its seccond-half earnings.
Reuters also reported that Qantas was increasing international fares, and was exploring options to redeploy capacity to Europe as airlines seek to evade disruptions in the Middle East.
Singapore Airlines has raised fares to Europe by $140 for a return ticket.
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.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
