Air New Zealand has announced it is upping its domestic and international air fares due to the rising cost of jet fuel.

Effective from March 18, domestic and international airfares will rise by an average of seven per cent and fares to Australia and the Pacific Islands will rise by an average of eight per cent.

According to an Air New Zealand press release, over the past month jet fuel has increased from US$114 per barrel to US$130 per barrel, adding almost US$10 million per month to the airline's operating costs.

Earlier today, Qantas announced its international fuel surcharges would increase again next week as continuing political instability in the Middle East impacts the price of oil and jet fuel.

One-way fuel surcharges for transtasman and Pacific-region flights are set to rise by A$30 (NZ$41) to A$105, while those travelling to the Americas and India will see increases of A$35 and those heading to the UK and mainland Europe will see increases of A$45.

The price increases will apply to tickets issued on or after March 17.

- NZ Herald staff