New Zealand airline cuts 1,100 flights over fuel price fears

Air New Zealand has announced the cancellation of about 1,100 flights over the next two months as airlines grapple with soaring jet fuel prices triggered by escalating tensions in the Middle East.

The airline said the cuts—representing roughly five per cent of its scheduled flights—will affect around 44,000 passengers. Most of the cancellations will impact domestic routes within New Zealand, although a limited number of international flights will also be affected.

Chief Executive Officer Nikhil Ravishankar said the decision was necessary to manage the sharp increase in operating costs caused by the global energy market volatility.

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“With the unprecedented volatility in jet fuel prices due to the conflict in the Middle East, airlines around the world are adjusting fares and their schedules to help manage the impact of these significantly increased costs,” Ravishankar said.

He explained that jet fuel typically costs around $85 per barrel but has now surged to roughly double that amount, forcing airlines to take urgent cost-control measures.

According to the airline, flights between New Zealand and the United States will not be affected. Ravishankar noted that demand for these routes has increased as travellers seek alternative connections to Europe.

The airline had earlier raised ticket prices on all routes earlier in the week in response to the fuel price surge.

Global oil prices climbed well above $100 per barrel after Iranian attacks on shipping effectively closed the Strait of Hormuz. The attacks were reportedly carried out in response to joint strikes by the United States and Israel that killed Iran’s Supreme Leader, Ayatollah Ali Khamenei.

The escalating crisis has sent shockwaves through global aviation markets, with airlines worldwide adjusting fares and flight schedules as they brace for prolonged fuel price volatility.

(AFP)