Loss-making Air New Zealand is exposed to additional daily fuel costs of $4m to $5m a day as oil prices spiral, say analysts. 
Forsyth Barr says the carrier has suffered increased costs since the pandemic, irrespective of fuel price issues, more so than many of its international competitors.
Higher for longer jet fuel prices may mean greater structural changes as a result of NZ’s strategy review, the analysts say.
The growing gap between the price of crude oil and refined jet fuel, is concerning for the global aviation industry. Margins soared from USD45 to USD145, described as ‘’unprecedented.’’
Forsyth Barr says refiners’ margins were already causing a problem for NZ (which uses about 22,000 barrels of jet fuel a day) and this was reflected in its half year loss of $59m.
Into the next financial year, most of NZ’s fuel is unhedged, meaning it is exposed to market prices.
. . . Shares Tumble
The Middle East crisis has sent airline stocks tumbling. Last week the Arca Airline Index slid nearly 15% in the United States. NZ’s share price, which was already weak, dropped 7% last week. Across the Tasman Qantas shares slid 10% last week while the impact on Flight Centre was more modest – it suffered a 5.8% dip.
