Air NZ puts fares up to recoup fuel costs

Air New Zealand is to increase fares for all flights from March 18 because of rising fuel costs.

Domestic and long-haul fares will go up about 7 per cent and tickets to Australia and the Pacific will cost about 8 per cent more to "recover jet fuel cost".

The increase will see one-way "flexiplus" fares from Auckland to Christchurch go up from $256 to $274, and "works deluxe" fares from Auckland to Sydney from $380 to $410.

A return economy flight to London will rise from $1950 to $2106.

"Over the past month, jet fuel has increased from US$114 [$155] per barrel to US$130 per barrel, adding almost US$10 million per month to the airline's operating cost," a statement from Air NZ said.

A spokeswoman said there would be no rise in the $50 standby special fares to and from Christchurch, which will apply until the end of the month.

The rise follows an earlier announcement by Qantas that its international fuel surcharge will increase again next week as political instability in the Middle East affects oil prices.

The one-way fuel surcharge for transtasman and Pacific-region flights will rise by A$30 ($41) to A$105, while people travelling to the Americas and India will see increases of A$30, and those heading to Europe will be charged A$45 more from March 17.

Qantas chief executive officer Alan Joyce said the airline would continue to closely monitor fuel prices and respond accordingly.

Kirsty Moore, who is planning a trip to England in July for a family reunion, said the rise and the declining Kiwi dollar had dealt a "double blow".

"It's bad enough that what I earn in Kiwi dollars will be worth less in pounds, and now this from the airlines. When will the bad news ever end?"

She said her online hunt for better prices had so far proven fruitless.

House of Travel sales director Brent Thomas said the increases were "not good news, but not unexpected".

"We've all gone to the fuel pumps and paid more for filling up our cars, so it's just a matter of time [before] airline companies need to put their prices up as well," Mr Thomas said.

However, he did not think the fare hikes would affect the number of people travelling. "We are slowly coming out of a recession, and having a holiday is still one of the most important things for most people," he said.

"Despite a backdrop of recession last year, the number of New Zealanders travelling still went up by 4 per cent. The slight rise in airfares is not going to affect people's holiday plans too much."

However, Mr Thomas said different airlines would react to the rise in fuel prices at different times, and travellers who shopped around could still find some that had yet to respond.

THE SKY'S THE LIMIT

One-way "flexiplus" Auckland to Christchurch - $256 to $274.

One-way "works deluxe" Auckland to Sydney - $380 to $410.

Economy return Auckland to London - $1950 to $2106.