Retiring less efficient planes has helped cut carbon intensity. Photo / Brett Phibbs
Fewer Air New Zealand passengers are paying to offset carbon on their flights.
The percentage of those ticking the FlyNeutral box is down from 7.1 per cent in 2020 to 6.9 per cent, according to the Airline's 2022 Sustainability Report. Last year it was 7 per cent.
Passengers have facedelevated airfares during the past year and the voluntary offset fee, which is paid on top of seat prices, depends on the route and class of travel.
The airline's calculator shows a short hop from Auckland to Tauranga aboard a turboprop plane costs 90c to offset, Auckland to Wellington is $3.02, while an Auckland-Sydney flight is $8.50 in economy and $12.74 in business premier.
The cost to offset emissions on the airline's longest route between Auckland and New York is $50.90 in economy and $147 in business.
Premium seats are more polluting because fewer passengers travel for the space and weight that they take up on a plane.
Air New Zealand said today it was uncertain about the reason behind the drop I the percentage of passengers paying to offset and will be conducting customer insight research to try understand it better.
A spokeswoman said it suspects the rising cost of living means customers are more price sensitive.
There was also changing customer sentiment towards offsetting more generally, a trend seen beyond aviation.
''We are working towards a longer term, more efficient solution, rather than actively promoting offsetting as a solution to the impacts of flying on the environment. Instead, we are focusing our attention on aviation decarbonisation technologies such as sustainable aviation fuel and zero emissions aircraft technology.''
Under the existing scheme, passengers can offset their share of a flight's carbon emissions with carbon credits from international projects, "while accelerating positive biodiversity outcomes in New Zealand".
The report says that in the year to June 30, FlyNeutral contributions offset 59,257 tonnes of CO2 and provided over $1 million to accelerate the restoration, regeneration and production of permanent native forests.
Customer donations to current FlyNeutral partner Trees That Count - a conservation charity bringing together business, community and other Kiwis to help plant trees across the country - funded the planting of 89,000 native trees.
The airline flew 7.7 million passengers on 123,614 flights during the 12-month period and it stresses that it doesn't make any money from FlyNeutral.
While an overwhelming majority of passengers continue to resist paying to offset, there is improvement in another key area.
The airline's carbon intensity (measured by C02 per revenue tonne kilometre) decreased by 7 per cent compared to 2021. This improvement was largely due to easing border restrictions leading to higher load factors on the network. However, this measure remains elevated when compared to pre-Covid-19 levels, due to the national lockdowns and border restrictions at various times throughout 2022.
While that measure of carbon intensity has been elevated through the period affected by Covid-19, carbon intensity has continued a downward trend, decreasing 12 per cent between 2019 and 2022.
This reduction has been a result of retiring the airline's Boeing 777-200ER fleet and continued operational efficiency.
Air New Zealand chair Dame Therese Walsh and chief executive Greg Foran say it's clear the climate crisis is continuing to accelerate rapidly.
"As a small island nation, we're dependent on our connections to the world, and we must find a more sustainable way to fly if we want to ensure our tourism and export industries continue to thrive," they say in the sustainability report.
The airline this year launched Flight NZ0, a commitment to reduce the carbon it emits until New Zealand reaches its net zero by 2050 goal.
More than 84 per cent of the airline's carbon footprint is from burning aviation fuel and this year it received its first delivery of sustainable aviation fuel (Saf), and aims to have it account for 1 per cent of total fuel next year.
During the last year the airline has been working with Airbus on hydrogen-powered aircraft.
"We firmly believe both New Zealand and Air New Zealand are uniquely placed to lead the world in the deployment of zero emissions aircraft," says the report.