Fuel prices: Barrier Air feels pressure as it maintains Northland routes

Barrier Air has raised fares by about $40 but kept all Northland flights, amid global fuel increases. Photo / Barrier Air

Barrier Air says it is doing what it can to keep Northland communities connected amid surging fuel costs, but the pressure is mounting.

Fuel prices have risen globally since conflict in the Middle East began in February, affecting crude oil prices.

As a result, larger airlines including Air New Zealand, Qantas and Jetstar have cut flights and lifted ticket prices as fuel costs increase.

Barrier Air chief executive Grant Bacon said they have not been spared and while ticket prices have risen, flights to Northland continue.

The airline is best known in Northland for flying between Kaitāia and Auckland after Air NZ stopped its northernmost service in 2015.

Bacon said fuel costs have doubled in recent months.

“Our fuel bill’s gone from $250,000 a month to kind of edging towards $500,000 a month, which is just crazy.”

Bacon said fares have risen by about $40 in recent weeks.

Despite this, he said they are not currently planning to cut flights,citing strong demand across Northland routes.

“If fuel prices go up too much, we are going to have to review our schedule and potentially look at maybe pulling back a little bit. But right now, the demand is very strong, so fingers crossed.”

Bacon said the industry had been knocked around and aviation hadn’t recovered since Covid.

“And now it just goes from bad to worse. But we’ve got a long-term view on things, and we have to hang in there.”

To help offset rising costs, the airline has introduced discounted return vouchers, allowing passengers to lock in lower fares and travel within a year.

Passengers have remained largely supportive Bacon said, but he acknowledged there are limits.

Northland Inc head of destination Ben Chapman said reliable air connections are critical for the region.

“Barrier Air plays an important role in keeping Te Tai Tokerau connected, particularly for communities where air access is not just about convenience, but about maintaining reliable links for business, visitors, whānau and essential travel.”

He warned higher travel costs could change behaviour, with businesses delaying trips and visitors looking elsewhere. The impact hurt the region.

“When businesses delay trips, events become harder to justify, and visitors start comparing Northland with destinations that feel easier or more affordable to reach. We are starting to see those pressures emerge.”

While airlines have taken what he called a considered and responsible approach to scheduling, Chapman said continued partnership and open dialogue with the Government were important.

“Northland businesses are resilient and adaptable, and we have seen that time and again. But like all regions, there is a limit to how much ongoing cost and access pressure can be absorbed. The key is ensuring we maintain strong connections and continue working collaboratively across industry and Government.”

Barrier Air frequent flyer Keith Mills said he was a big fan of Barrier Air and was happy it had not cut any flights and the service was essential.

“Until Barrier Air came to Kerikeri we were paying nearly two times what we are now...The competition helped bring prices down, making it another option to getting back and forth to Auckland.”

On Monday, Barrier Air’s website showed tickets from Kaitaia to Auckland was priced between $189 and $369, and tickets from Kerikeri to Auckland was between $149 and $169.