Long-haul flights could be at risk if the fuel crisis continues, an aviation leader says, after Air New Zealand announced cuts to services in and out of some regional centres.
The national carrier said yesterday that the ongoing impact of high jet fuel costs prompted the schedule changes in May and June, affecting around 4% of flights and 1% of passengers.
The airline wouldn’t confirm which towns and cities were affected, but said most of the domestic network had seen “only minor adjustments, with a small number of ports such as Hokitika, Timaru, Taupō and Rotorua remaining unchanged to maintain connectivity”.
Air NZ also confirmed some international flights were affected by the “small number of schedule changes”.
The cuts, which followed more announced last month and continuing to May 3 across Air NZ’s domestic network, weren’t really about removing the airline’s exposure to fuel costs overall, New Zealand Airports’ Association chief executive Billie Moore said.
“If it was, we’d see more cuts to long haul rather than some of these regional routes”, Moore told Ryan Bridge TODAY.
“So [it’s] more of an overall view of their network rather than focus on where the major fuel costs are actually lying. We’re not yet in a supply issue when it comes to jet fuel – it’s a price issue.”
Optimising resources by consolidating some flights made sense, and she was pleased some small locations were being protected.
“But if this starts to get worse, we’d expect to see more of a focus on some of those heavier jet fuel routes like long haul, like some of those routes to the US potentially.”
Air NZ declined to respond to Moore’s comments, which were made hours before US President Donald Trump announced late this morning (NZT) a two-week ceasefire deal with Iran that includes the reopening of the Strait of Hormuz.
About a fifth of the world’s total oil consumption passed through the narrow stretch of water between Iran, the United Arab Emirates and Oman, and the six-week blockade has sent fuel prices soaring.
Air NZ said yesterday that the “vast majority” of impacted customers from the latest round of cuts would still be travelling on the same day.
Affected customers would be told before the end of the week, with refunds or credits available for those whose updated flights don’t suit their plans.
“If you don’t hear from us, your flight is operating as scheduled.”
The changes were “relatively small” compared to other airlines servicing New Zealand, with some having cut capacity by more than 10%, the airline said.
Smith said the loss of 140 flights between Nelson and the three main centres in May and June would not only impact the travel plans of residents and visitors, it would hit his council’s finances as 50% owner in Nelson Airport Ltd.
Sixty flights to and from the same destinations were also cut for the six weeks to May 3, Smith said.
Air NZ announced last month that 1100 flights would operate at a reduced frequency because of rising jet fuel prices, affecting 44,000 customers.
Moore said service cuts hampered airport owners’ ability to maintain their infrastructure, and were part of an ongoing decline in flights in the last few years.
“While we’ve seen a lot of investment from Jetstar in the country, most overall, seats have been reducing over the years”, she told Ryan Bridge TODAY.
“We’re not in a growth phase like many of those other countries around the world who are seeing the same phenomenon from the airlines ... it’s a weaker position for New Zealand at the moment.”
Cherie Howie is an Auckland-based reporter who joined the Herald in 2011. She has been a journalist for more than 20 years and specialises in general news and features.