Jetstar raises domestic fares by 5 per cent

Jetstar has followed Air New Zealand's lead in lifting prices on domestic flights. Photo/File.

Only two weeks after Air New Zealand announced it would be hiking prices, Jetstar will be doing the same with rising oil prices cited as one reason.

The low-cost carrier said it would push up domestic fares by an average of 5 percent across all domestic sectors.

A spokesman said fares would rise between $2 and $4 per one-way journey on cheapest fares on a one-way journey.

''We regularly review our fares and make changes based on market conditions, including rising fuel costs.

After the Air New Zealand announcement two weeks ago, Jetstar initially held its domestic fares.

"Our focus is on providing the lowest fares we can however we regularly monitor all our costs, including the rising fuel prices," said a spokesman for the company at the time.

Airlines are battling rising fuel prices. The price of oil has increased about 50 per cent over the last year.

Air New Zealand says it reviews its international prices every month and fare increases are possible as fuel makes up around a third of operating costs on long-haul routes.