Air New Zealand cuts 1,100 flights over fuel price fears

Air New Zealand announced on Thursday, March 12, that it will cancel 1,100 flights over the next two months due to rising fuel prices linked to the conflict in the Middle East. The airline's chief executive, Nikhil Ravishankar, stated that about five percent of their flights will be affected, impacting approximately 44,000 passengers. Most of the cancellations will involve domestic flights within New Zealand, but some international routes will also be included. However, flights between New Zealand and the United States will remain unaffected because demand for alternative European routes has increased, according to Ravishankar. He explained that the current instability in jet fuel prices, which usually cost around US$85 a barrel, has led to prices that are now double that amount. The cancellations are intended to help keep air travel affordable and to ensure efficient fuel use. Earlier this week, Air New Zealand also increased ticket prices across all routes. This surge in oil prices, which have risen above US$100 a barrel, follows Iranian attacks on shipping that effectively closed the Strait of Hormuz in retaliation for US-Israeli strikes that killed Supreme Leader Ayatollah Ali Khamenei.