Travel up despite fare rises

By Stuff.co.nz

Air New Zealand will increase its fares for a third time since March due to sustained record fuel costs, but holiday makers appear to be taking little notice.

Domestic and trans-Tasman fares on Air New Zealand will rise another 3 per cent on average and long-haul routes will increase an average 5 per cent.

The increased prices are for tickets bought from July 17 and follow a global trend as airlines around the world struggle because fuel costs have increased 60% this year.

Air New Zealand's fare increases during the past four months have been broadly matched by its main competitors on domestic and Tasman routes, Qantas and Pacific Blue.

Air New Zealand deputy chief executive Norm Thompson said yesterday fares had to increase to partly recover the cost jet fuel which had remained above $US170 a barrel.

But the rising costs of airfares was not putting New Zealand people off their domestic or international holiday, according to one of the biggest travel agents.

House of Travel retail director Brent Thomas said bookings in June were up 20.4 per cent compared to the same month last year and despite fares increasing an average 14 per cent since March.