Bad news for flyers with the increase in the price of jet fuel leading the first international airline to increase airfares in a bid to offset challenging operating costs.
Air New Zealand confirmed this morning that it has implemented fare changes, saying that if the conflict in the Middle East continues, it would take further pricing action.
So you can thank President Trump's "pre-emptive" action for that.
IATA’s weekly monitoring of jet fuel prices has revealed a 58% rise from US$99.40 to US$157 a barrel on last week.
Air New Zealand also pointed to an increasingly volatile spread in the difference between crude oil and the price of refined jet fuel.
“Since the conflict began, the crack spread has been particularly volatile, widening from approximately US$22 per barrel before the conflict to as high as US$115 per barrel,” Air New Zealand said in a statement.
"As a result, the airline has suspended its 2026 [earnings] guidance for the foreseeable future, with the crisis expected to 'meaningfully affect' its second-half earnings."
Network and schedule adjustments were also flagged. The share prices for both Qantas and Virgin Australia both dropped this week on the back of the jet fuel crisis before rallying.
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