Soaring oil prices have pushed Air NZ into raising its ticket prices again, with flights to Australia and the Pacific going up 3 per cent.
The increase will apply from May 26 to trans-Tasman airfares sold in Australia and New Zealand, and Pacific Island airfares sold in
New Zealand and the Pacific Islands.
To great fanfare, the airline said in January it was cutting domestic airfares by up to 30 per cent to fill increased numbers of seats.
However, at the end of last month the airline announced its second increase in domestic fares in six weeks due to record jet fuel prices, with a 3 per cent increase following a 3 per cent rise on domestic, trans-Tasman and Pacific Island airfares announced in March.
Since then, Singapore jet fuel per barrel has increased by a further 12.5 per cent to US$162 ($215.62) from US$144.
The fare increase would only partially recover the cost of fuel, said Air NZ.
Last week said it had no immediate plans to increase its domestic airfares by up to 10 per cent, as it accused Virgin Blue subsidiary Pacific Blue of doing.
Pacific Blue said at the time that it had raised some fares but that its domestic fares remained cheaper than Air NZ's.
- NZPA
