Air Chathams to cut flights from North Island routes after fuel cost doubles

Previously, Air Chathams was paying about $500,000 a month in fuel costs, but that number had doubled to over $1 million.

By RNZ

Air Chathams is cutting a significant number of flights from several North Island routes, which have become unsustainable after the cost of jet fuel has more than doubled.

The company is the only airline flying to the Chatham Islands, providing a vital connection to the mainland for passengers and freight, and has been under increased financial pressure because of the rising cost of aviation fuel.

In March, Air Chathams added a $20 surcharge on all its tickets, to help to offset the additional costs.

Air Chathams chief executive Duane Emeny told Checkpoint that the carrier would maintain vital flights between the island and the mainland, but would axe about 45% of flights into Whakatāne, 22% of flights into Whanganui and 10% into Kāpiti.

The cuts – which were entirely caused by the fuel crisis – would begin around April 20, Emeny said.

Currently, Air Chathams was not even able to cover its direct costs running those flights.

“There’s no real point in operating the services if we can’t even cover the direct cost.”

The issue was worsened by a drop in demand, as people were deciding against discretionary travel or putting off plans, he said.

Previously, Air Chathams was paying about $500,000 a month in fuel costs, but that number had doubled to over $1 million.

Air New Zealand on Wednesday also said it had seen its fuel costs double, and that it was cutting flights – but it would not say which flights or when that might happen.

The goal was to reduce costs without doing long-term damage to the market, Emeny said.

He added that regional airlines would like to see some of the Government’s targeted and temporary financial relief.

The Government in 2025 announced a package including up to $30 million in loans from the Government’s Regional Infrastructure Fund to help with rising costs.

“It’s super important that we get that funding out and supporting these regional carriers as soon as possible,” Emeny said.

He added that the Government should consider whether to restructure that package so airlines do not have to take it all on as concessionary debt.

“We’ve just got to keep doing what we can working with government.

“I am hopeful that there is some work ongoing to look at some of that targeted support, because it is desperately needed. And I think it’s really important to just highlight the important role that smaller airlines like Air Chathams and Sounds Air and Barrier Air play.”