Air NZ fares on way up again

Air New Zealand is putting up domestic fares for the second time in six weeks due to record jet fuel prices.

The cost of domestic fares will rise by an average of three per cent for travel booked from May 6.

Trans-Tasman fares are also being reviewed.

The airline last increased prices for domestic fares, along with Tasman and Pacific Island fares, on March 17.

Deputy chief executive Norm Thompson said Air New Zealand regretted having to lift fares again within such a short space of time, but could not continue to absorb the significantly higher cost of fuel.

He said over the last two months, long haul international fares had increased by 4 per cent to 8 per cent depending on route and class, and looked certain to rise further as fuel continues to spiral.

Singapore jet fuel per barrel had increased from US$130 on March 17 to today's price of US$144.

Shares in Air NZ were up 3c to $1.24 in early afternoon trading.

- NZPA