Summary
Air New Zealand is reducing flights and raising ticket prices because the cost of jet fuel has gone up significantly. The price increase is linked to the ongoing conflict between the US, Israel, and Iran, which has disrupted fuel supplies. Many airlines globally are facing similar challenges, adjusting their operations and fares accordingly.
Key Facts
- Air New Zealand is cutting flights and raising fares due to high jet fuel prices.
- The fuel price increase is tied to the US-Israel conflict with Iran, affecting supply.
- Flights to and from Auckland, Wellington, and Christchurch are most impacted.
- Jet fuel costs typically make up 20-40% of airline operating expenses.
- The Gulf supplies about half of Europe's jet fuel, but current access is restricted.
- The Al-Zour refinery in Kuwait is a key source of European jet fuel imports.
- Airlines like Korean Air, United Airlines, and Air France-KLM are adjusting prices and flights.
- British Airways owner IAG and EasyJet have not yet changed fares due to pre-fixed prices.
