Air New Zealand Koru membership price soars by 20%

Air New Zealand Koru membership prices are climbing by up to 20 per cent

One-year individual membership is increasing from $694 to $834, two-year membership from $1219 to $1459 and five-year membership is up from $2774 to $3374.

‘‘This increase is necessary to cover the increasing operational costs of the programme and its benefits and allows us to continue to offer the broad range of benefits that our members value,’' the airline says on its website.

Prices will rise from April 26 and come after the airline said in February it would increase domestic air fares as it faces a tough second half to the financial year.

Koru members can access Air New Zealand lounges here and overseas as well as some airline partner lounges at overseas airports. Other benefits include; lounge access for one guest travelling with the Koru member, priority check-in, one complimentary additional checked bag (when travelling on a fare that includes checked luggage), priority checked baggage, fast bag on regional flights and complimentary frequent flyer seating.

On its website, the airline says there will be no change to these benefits for customers.

Discounted Koru corporate membership fees and over 65s prices are also going up.

Joining fees for individuals stay at $255 and corporates at $155.

The last price increase was in November 2022 and the airline says it is reviewed on a regular basis.

Overcrowding in lounges has been a problem in the past and although the airline doesn’t refer to this, the price increases may help limit numbers.

Latest inflation data shows this country’s consumer price index increased 4.7 percent in the 12 months to the December 2023 quarter, according to Stats NZ.

‘‘We are providing members within the renewal period (two months before the expiry date and/or no later than one month after the expiry date) with advanced notice of this change.’'

Air New Zealand general manager of loyalty Kate O’Brien confirmed the fee rises and said the ‘‘small increase’' was needed to cover costs and ‘‘allow us to continue to offer a broad range of benefits that our members value in the future.”

The airline has come under fire by airports for increases in its domestic fares.

Last month airports pushed for domestic airfare and airline performance monitoring to provide greater transparency for consumers, amid record high domestic airfares.

Data from Stats NZ shows domestic airfares were again adding to the cost of living for Kiwis, increasing 7.4 per cent in February compared to January.

Fares had been trending down but Air New Zealand warned when it released its half-year results last month that it would increase domestic fares to boost profits as it faces more competition on its international routes.

NZ Airports Association chief executive Billie Moore said Air New Zealand has not only upped its domestic airfares, it was also increasing the cost of add-ons such as bag check.

The Herald has also called for greater scrutiny of airline behaviour as the row with Auckland Airport over aeronautical fees heats up and airlines call for a new regulatory regime for airports.

Consumer NZ’s chief executive Jon Duffy says more oversight is necessary.

“We would welcome greater oversight and scrutiny of the industry to protect us from price gouging.”

Asked about Airports NZ’s push for better monitoring of airlines, Transport Minister Simeon Brown said last month that the Government was concerned about the cost of living and is focused on reducing inflation across the economy.

‘‘The Government wants to see improved competition between operators and has an open mind around steps needed to assist with ensuring this.’'

Grant Bradley has worked at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.