Air New Zealand is taking pragmatic action in response to rising global fuel costs by cancelling four return flights to Samoa in April and May. This is part of broader scheduled changes announced earlier this month.
These cuts represent a minimal adjustment from nine weekly services, as the airline battles unprecedented jet fuel volatility triggered by the Middle East conflict.
Like other airlines, it is grappling with jet fuel price volatility stemming from the Middle East conflict and is tweaking schedules to mitigate the fallout.
Air New Zealand previously announced the cancellation of about 1100 flights from early March to early May, with most passengers rebooked onto same-day alternatives. Jet fuel has rocketed from $US85-90 to $US150-200 per barrel recently, forcing airlines like Air New Zealand to hike surcharges and trim routes.
Cath O’Brien, chief executive of the Board of Airline Representatives, noted that New Zealand has a track record of jet fuel allocation challenges.
“We saw that in 2017. We had the pipeline rupture. We saw it in 2022 and 2023 when we had insufficient jet fuel imported into the country.”
She expressed worry over the lack of guidance, as suppliers might issue just 12 hours’ notice for rationing, yet airlines cannot react typically since limited jet fuel in New Zealand would mean shortages elsewhere too.
“If we knew how a scarce resource of jet fuel might be managed, then we would be able to say how airlines might respond and whether that jet fuel is allocated more or less to long haul, or short haul, or freighters, or licensed flights, or regional services.”
“At the moment, we’re kind of operating in this dearth of information.”
O’Brien noted, however, that airlines were confident in the current adequate fuel supply, enabling normal operations to proceed.
“If we get to a point, as we have in the past in New Zealand, where jet fuel is 10 days away from arriving and we have a limited amount to get us through, then we might need to be careful with that jet fuel that we have as we wait for the next shipment.
“I think that’s increasingly likely as an outcome of the conflict up in the Middle East… so we need to know how we will manage that delay.”
Regional operators are also responding proactively. Originair will discontinue its Wellington–Westport route, while Air Chathams has added a modest $20 fuel surcharge per ticket.
Barrier Air reports that fuel cost increases currently add roughly $15 per passenger on a Wellington to Tākaka Golden Bay flight.