Air New Zealand will cut the number of flights and service by 5% over the next two months as fuel prices soar due to conflict in the Middle East.
The cuts will last until early May 2026 and amount to approximately 1,100 flights, which will affect 44,000 of the major airline’s 1.9 million passengers. Most affected passengers will be transferred to other flights.
Air New Zealand chief executive Nikhil Ravishankar told 1News: “For example, we are focused on consolidating flights at off-peak flying times or where there are alternatives to rescheduling passengers.”
44,000 of Air New Zealand’s 1.9 million passengers will be affected by the flight cuts. Reuters
Later, Ravishankar added, “The intervention we are taking is not only reasonable, it is what all airlines around the world are doing.”
David Slotnick, aviation contributing editor at The Points Guy, has a nuanced take on whether most major airlines will take this approach.
“Canceling flights and rearranging networks can be a big deal for airlines, so they generally won’t do it without a compelling reason,” Slotnick told The Washington Post. “If people start traveling less because of fuel prices and airlines see demand drop, it makes sense to adjust flight schedules to meet demand, especially if you’re just canceling flights on routes that have multiple flights a day.”
“But if travel demand remains high, as some of the major U.S. airlines predict, then airlines are more likely to pass on some of the higher fuel costs to passengers by raising ticket prices and absorb some of the costs as operating expenses,” Slotnick continued.
Airlines will cut fewer long-haul flights during this period. NurPhoto from Getty Images
While Air New Zealand has yet to list specific flights that will be affected, New Zealand officials say changes have been made to domestic routes.
Mayor Nadine Taylor says Air New Zealand will reduce its routes from Marlborough to Wellington. Flights from Auckland and Christchurch will also be affected, but there will be fewer long-haul flights.
The price of aviation fuel carried by tanker trucks has skyrocketed. Media News Team via Getty Images
“People still want to get to Europe, and we can get them there through U.S. airspace, and that’s what we’re focused on,” Ravishankar added.
Air New Zealand has also recently raised prices due to rising jet fuel costs due to the US-Iran conflict.
Oil prices were around $90 a barrel before the conflict and have since surged to $200 a barrel.
For Air New Zealand, this results in price increases of $10 for domestic flights, $20 for short-haul flights and $90 for long-haul flights.
Airlines including Qantas and Scandinavia’s SAS have followed suit, raising prices.
Conversely, airlines such as Ryanair, easyJet, British Airways and Virgin Atlantic are less affected as they receive some of the fuel at a fixed price for a limited time.
“(The increase in jet fuel prices) will not affect our costs and will not reduce our fares,” Ryanair boss Michael O’Leary told The Sun.
“Fuel is one of the biggest expenses for airlines,” Gary Leff, a travel expert at View from the Wing, told The Washington Post. “Marginal routes will be losers. As oil prices rise and the economy contracts, demand is also likely to fall.”
“We may see cuts to domestic routes that have multiple flights,” Leff continued. “If you live in New Zealand, a lot of flights are long haul – and that uses a lot of fuel!”
