Air New Zealand is cancelling about 1100 flights affecting an estimated 44,000 passengers over a six-week period as the fuel price rises hit hard.
However, NZ has confirmed that most of the impacted flights are on regional routes although some transtasman and Pacific Island services will be affected. Most of the passengers will be moved to flights on the same day. 
Flights to Bali are under review but those to the US are unlikely to be affected as demand for seats is high due to constrained capacity through the Middle East.
The flight changes will start next week and run for six weeks until early May when the airline says it will know more about the impact of the spike in oil and jet fuel prices in particular as a result of Israel and the US/Israel attack on Iran.
Regional destinations where there are very few flights a day are unlikely to be badly affected, it adds. Other airlines are also rejigging schedules and pushing up prices.
. . . Fares Up Already
Earlier this week NZ pushed up domestic fares by $10, short haul $20 and long haul $90.
NZ said then that since the conflict began, the refining margin or ‘crack spread’ has also been particularly volatile, widening from approximately USD22 per barrel before the attack was launched, to as high as USD115 per barrel.
NZ is 83% hedged against Brent crude for the second half of this financial year. However, it says that like most global airline peers it remains exposed to movements in the crack spread. In parallel with the fare increase and schedule changes, it is continuing ongoing cost reduction initiatives that are expected to partially offset these pressures.
. . . Trade Response
House of Travel ceo David Coombes is not one of the outraged retail sources and calls NZ flight cancellations a pragmatic move as airlines around the world are adjusting schedules due to soaring fuel costs.
“However, this is a pressure airlines the world over have navigated during difficult historical events in the past, and I would say the industry is very resilient and can often stabilise quickly.’’ HoT’s immediate priority is its customers and the 44,000 Kiwis whose travel plans will be impacted, he added.
. . . Wingtips
Some agents were a bit miffed that NZ only sent out a Wingtips on the matter after 1230 today, saying they were left to field client queries.
