Commodities April 6, 2026

Air New Zealand trims May-June schedule and raises fares as jet fuel soars

Carrier consolidates flights for the second time in a month after jet fuel costs more than double amid Iran conflict

By Avery Klein
Air New Zealand trims May-June schedule and raises fares as jet fuel soars

Air New Zealand announced a further reduction in services across May and June and said it will increase fares, citing a sharp rise in jet fuel costs tied to the ongoing Iran war. The carrier said the latest consolidation will impact around 4% of flights and about 1% of passengers over the two-month period, and that affected customers will be informed by the end of the week.

Key Points

  • Air New Zealand will consolidate flights in May and June, impacting about 4% of flights and roughly 1% of total passengers for that period - sectors affected: airlines, travel.
  • The carrier will increase fares as jet fuel costs have more than doubled compared with usual levels - sectors affected: airlines, energy (fuel costs).
  • This is the airline’s second consolidation in nearly a month; earlier in March it cut about 5% of flights through early May, and closures at major Middle East hubs have further weighed on operations - sectors affected: aviation hubs, global travel.

April 7 - Air New Zealand said on Tuesday it will reduce the number of flights operating in May and June and implement fare increases as elevated jet fuel prices linked to the Iran war push operating costs higher.

The carrier described the moves as its second operational consolidation in almost a month. The latest adjustments will touch roughly 4% of scheduled flights and are expected to affect approximately 1% of the airline's total passengers travelling across May and June.

"Like airlines globally, we’re experiencing jet fuel prices that are more than double what they would usually be,"

Air New Zealand said it will notify customers who are affected from 2100 GMT on Monday, with all notifications to be completed by the end of the week.

Earlier in March, about two weeks after the conflict began, the airline announced a separate round of cuts that removed 5% of its flights through early May. The company also pointed to closures at major aviation hubs in the Middle East as an additional pressure on international travel operations.


Operational context

The airline’s announcement links higher fares and capacity reductions directly to sharply higher jet fuel costs and travel disruptions stemming from the Iran war and related airport closures in the region. This latest round of consolidation follows the carrier’s March decision to cut a portion of its schedule and represents a continued response to the evolving cost and operational environment.

Customer communications

Air New Zealand has committed to informing affected customers within the stated notification window. The company did not disclose additional details on the fare increases or whether the reductions will be adjusted further beyond the May-June period.

The airline’s statement framed the adjustments as part of a broader, industry-wide set of challenges tied to fuel inflation and regional travel disruptions.

Risks

  • Persistently elevated jet fuel prices increasing operating costs for carriers - impacts airlines and travel-related markets.
  • Ongoing closures in major Middle East aviation hubs that disrupt flight networks and passenger flows - impacts aviation operations and international travel.
  • Potential for additional schedule adjustments if cost and regional disruption pressures persist - impacts airline capacity planning and passenger service.

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