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Air New Zealand will increase domestic and international fares from mid-July, the airline said Thursday, blaming its fourth fare hike since March on rising fuel prices.
The national carrier said domestic fares and those to and from Australia will rise 3 per cent from July 17, while international fares to North America, Asia and the United Kingdom will increase by an average 5 per cent.
The airline could not continue to absorb the rising cost of jet fuel, which is now priced above US$170 a barrel, said Deputy Chief Executive Norm Thompson.
The fare increases would only partly recover the rising cost, he said in a statement.
The carrier raised fares on many routes by an average 4 per cent last month. That followed two hikes of about 3 per cent in domestic fares earlier in the year.
Air New Zealand had signaled earlier that further hikes in ticket prices were likely because of high oil prices.
In April the airline lowered its fiscal year profit guidance and said it no longer expected to better its 2007 result because of the impact of fuel prices.
It set its new forecast for normalized earnings before tax and unusual items at between US$156 million-US$171 million. It had previously expected to match the US$205 million posted in 2007.
- NZPA
