The NZ Airports Association (NZAA) has called out Air New Zealand for its domestic airfares increasing 7.4% in February, in comparison to the month prior. It argued in favour of introducing domestic airfare and airline performance monitoring for customer transparency.
""This week's data from Stats NZ shows domestic airfares were again adding to the cost of living crisis for Kiwis,"" said NZAA chief executive Billie Moore.
He added: ""Air New Zealand is busy blaming Auckland Airport for cost increases when it’s their own record-high domestic airfares and cost add-ons that are driving up the cost of domestic travel for consumers. Airport charges only make up a fraction of a ticket.""
In its 2024 interim earnings call Air New Zealand CEO Greg Foran said: ""While fares held up initially, there was a notable pressure on fares and in month sales build going into December and January peak holiday season.""
He added that carriers such as in the US are offering fares that are ""unsustainably low."" He said: ""Average fares are still well above pre-COVID levels and are reflective of the significant increase in costs to operate.""
In the same call, Air New Zealand CFO Richard Thompson said: ""In domestic, actually, fares have only just kept pace with those costs increases, and we're leaning into more cost increases in the second half of the year.""
Air New Zealand had reported its first half 2023 net profits to be down 39% year-on-year to $129 million.
Push for domestic airfare monitoring after Air New Zealand price hikes
