{"id":321295,"date":"2026-03-09T21:18:08","date_gmt":"2026-03-09T21:18:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/321295\/"},"modified":"2026-03-09T21:18:08","modified_gmt":"2026-03-09T21:18:08","slug":"air-nz-warns-of-price-hikes-schedule-changes-if-iran-war-continues","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/321295\/","title":{"rendered":"Air NZ warns of price hikes, schedule changes if Iran war continues"},"content":{"rendered":"

Air New Zealand says it is adjusting fares \u2013 and may need to take further action to its pricing and schedule \u2013 due to the Iran conflict<\/a> causing \u201cextreme volatility\u201d to the jet fuel market.<\/p>\n

The airline said in recent days, the price per barrel of jet fuel has gone from between US$85 and US$90 (NZ$143.47 and NZ$151.91) to between US$150 and US$200 (NZ$253.18 and NZ$337.50).<\/p>\n

Air New Zealand also announced it would suspend its earnings guidance \u201cuntil fuel markets and operating conditions stabilise\u201d. It deemed the guidance was \u201cno longer appropriate\u201d due to the changes in the market.<\/p>\n

It also said it had already “implemented initial fare adjustments”.<\/p>\n

“If the conflict leads to continued elevated jet fuel costs, the airline may need to take further pricing action and adjust its network and schedule as required.”<\/p>\n

Yesterday, Air New Zealand shares dropped 7.84%. Share prices dropped from 51c at the 10am market opening time to 47c by its close.<\/p>\n

Last month, the airline posted a loss<\/a> before tax of $59 million \u2013 and cited ongoing volatility, including continued global engine maintenance<\/a> impacts and a slower recovery in domestic demand.<\/p>\n

Previously, Air New Zealand said it had expected second-half earnings to be broadly in line with, or \u201cmodestly below\u201d the first half. However, it now noted the fuel price crisis is expected to \u201cmeaningfully affect second-half earnings\u201d, which remain \u201csubject to material uncertainty\u201d due to its \u201cengine return schedules, the timing and quantum of compensation, and volatility across key input costs and demand conditions\u201d.<\/p>\n

In response, the airline said it is \u201cprogressing ongoing cost reduction initiatives which are expected to partially offset these pressures\u201d. <\/p>\n

Last month, 1News reported the Air New Zealand Board had asked Nikhil Ravishankar to undertake a full strategy review when he took up the chief executive officer role in October<\/a>.<\/p>\n

Air New Zealand said it is 83% hedged against Brent crude for the second half of the 2026 financial year, but remains exposed to movements in the crack spread.<\/p>\n

“Jet fuel pricing is made up of two elements, Brent Crude (the underlying crude oil price) and the crack spread, which is the refinery margin (the difference between crude oil and the price of refined jet fuel),” it explained in a post to the NZX.<\/p>\n

“Since the conflict began, the crack spread has also been particularly volatile, widening from approximately US$22 (NZ$37.13) per barrel before the conflict to as high as US$115 (NZ$194.10) per barrel.”<\/p>\n

The airline added its estimated fuel consumption for the remainder of the financial year (from March to June) is approximately 2.9 million barrels.<\/p>\n

The morning’s headlines in 90 seconds, including why a once dominant gang\u2019s been \u2018delisted\u2019, and the new threat US intelligence is monitoring amid the Iran conflict. (Source: 1News)<\/p>\n","protected":false},"excerpt":{"rendered":"Air New Zealand says it is adjusting fares \u2013 and may need to take further action to its…\n","protected":false},"author":2,"featured_media":321296,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[138,111,43,139,69],"class_list":{"0":"post-321295","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-zealand","8":"tag-business","9":"tag-new-zealand","10":"tag-news","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/321295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=321295"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/321295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/321296"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=321295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=321295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=321295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}