New Zealand's national airline has become the latest to cut flights and hike fares as jet fuel prices surge to record levels due to the US-Israeli war with Iran.
Air New Zealand's cancellations are expected to hit routes in and out of Auckland, Wellington and Christchurch, with flights to smaller airports unchanged.
Many airlines around the world have had to take emergency measures to counter the surge in the cost of fuel, which typically makes up 20-40% of their operating costs.
Last week, the benchmark European jet fuel price hit an all-time high of $1,838 (£1,387) per tonne, compared with $831 before the war began.
The Gulf is a major source of aviation fuel, accounting for about 50% of Europe's imports. The bulk of it comes through the Strait of Hormuz, which Iran has effectively closed in response to US and Israeli attacks.
The price surge also reflects the role Middle Eastern refineries play in jet fuel supply. The Al-Zour refinery in Kuwait alone provides roughly 10% of Europe's jet fuel imports, according to Energy Intelligence.
Air New Zealand, which had already cut some flights last month, said the "vast majority" of customers by the cancellations were being alternative offered flights on the same day.
"Like airlines globally, we're experiencing jet fuel prices that are more than double what they would usually be" a spokesperson said.
Many airlines in Asia have been cutting flights and raising fares to cope with the situation. Last week, Korean Air became the latest carrier to say it was moving into emergency management mode.
But airlines globally have been taking action. US airline UnIted Airlines and Scandinavia's SAS are among those to have cut flights and increased ticket prices.
Air France-KLM has said it plans to increase prices on long-haul flights, while Cathay Pacific is raising its fuel surcharge.
British Airways owner IAG and EasyJet have been able to hold off on either measure so far as they are buying their fuel at a price fixed before the war began.
However, Ryanair Michael O'Leary told Sky News last week that jet fuel supplies could start to be disrupted in May if the conflict continued.
LATEST POSTS
- 1
Lebanon says Israeli strike killed 13 people near Palestinian refugee camp - 29 Under-The-Radar Malaysian Islands To Consider Instead Of Thailand Or Indonesia
- 3Two Endangered Bengal Tiger Cubs Die Days Apart at Zoo After Contracting Virus
- 4Jamie Dimon warns Iran war could drive inflation, interest rates higher
- 5Focus on Yourself: Wellbeing and Taking care of oneself Practices
- Everyone knows F1 is for the girls. I wandered into the Las Vegas desert to find out why.
- South Carolina confirms 124 new measles cases as outbreak on the Arizona-Utah line grows
- Iran Used $2 Billion in Crypto to Run Its Militant Proxies in 2025
- Meet the rescue team behind the astronauts as Artemis II's launch approaches
- Air Canada CEO To Resign After Backlash—Here’s Why Communication Skills Is Now A Leadership Requirement
- Passover under fire: Israelis balance fatigue with cautious hope after month of war
- He walked on the moon in 1972. This is his advice for the Artemis II astronauts.
- We analyzed Philly street scenes and identified signs of gentrification using machine learning trained on longtime residents’ observations
- Air travelers face higher ticket prices as Iran war drives up oil prices
