Air NZ concerned about high cost of fuel

Air New Zealand says it is concerned about the high cost of fuel.

Qantas and its subsidiary Jetstar yesterday announced they were increasing their international fuel surcharges from January 17, in response to crude oil recently rising above US$100 a barrel.

Air New Zealand spokeswoman Tracey Palmer said the airline did not charge a separate fuel surcharge.

"We are very concerned about the high cost of fuel and we will continue to monitor the situation very closely."

Jetstar is to raise its surcharge on trans-Tasman flights from A$45 ($52) to A$55 and its services to Asia and the Pacific from A$98 to A$108.

Qantas is lifting its surcharge from Australia to New Zealand by A$10 to A$70 ($80.31), and to other destinations from between A$15 and A$25.

Both airlines are not increasing their surcharges for domestic flights.

- NZPA