{"id":82054,"date":"2025-10-16T11:30:10","date_gmt":"2025-10-16T11:30:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/82054\/"},"modified":"2025-10-16T11:30:10","modified_gmt":"2025-10-16T11:30:10","slug":"airports-group-says-nz-had-worlds-highest-domestic-airfare-increase-since-2019","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/82054\/","title":{"rendered":"Airports group says NZ had world\u2019s highest domestic airfare increase since 2019"},"content":{"rendered":"

\u201cAirfare variations are largely influenced by inflation (CPI)<\/a> and airline competition, factors which are outside the airport\u2019s control.\u201d<\/p>\n

It said airfares had surged across all markets, except China.<\/p>\n

Stefano Baronci, ACI Asia-Pacific and Middle East director-general, said the study proved cutting airport charges did not translate into cheaper fares.<\/p>\n

\u201cInstead, it limits airports\u2019 ability to invest in capacity and technology to enhance service quality,\u201d Baronci said.<\/p>\n

The analysis was developed with US firm Flare Aviation Consulting.<\/p>\n

And in new data released today, Stats NZ said domestic airfares last month were up 2.1% compared to a year before.<\/p>\n

International fares were up 6.9% on a year earlier.<\/p>\n

Only electricity and gas recorded higher annual increases out of 18 categories in the Stats NZ selected price indexes.<\/p>\n

Board of Airline Representatives (Barnz) executive director Cath O\u2019Brien said it could be disingenuous to compare New Zealand with many other countries. <\/p>\n

Domestic airfares incurred landing charges on every part of the network, she told the Herald. <\/p>\n

O\u2019Brien said New Zealand was a long, skinny, sparsely populated country with significant distances between major centres. <\/p>\n

She said India, China and some other countries had state-run airports with a \u201csingle till\u201d model, not the dual till some New Zealand airports had.<\/p>\n

The dual till<\/a> referred to how aeronautical activities were regulated, but activities such as retail and car parking were not.<\/p>\n

\u201cWe have a user-pays aviation environment,\u201d O\u2019Brien said. <\/p>\n

Airlines also paid fees or levies for air traffic control, customs and aviation security. <\/p>\n

\u201cWe are probably among the more expensive places to operate.\u201d<\/p>\n

But she did not believe nationalising airports was the solution, as New Zealand was already well down the path of privatisation.<\/p>\n

Instead, she said better oversight of airports was needed.<\/p>\n

\u201cAt the moment the airport can spend any amount of money it wants to.\u201d<\/p>\n

Last week, the Commerce Commission ruled out calls for an inquiry into airport regulation<\/a>.<\/p>\n

Air New Zealand general manager domestic Kate O\u2019Brien said the airline was aware of how important affordable travel was.<\/p>\n

She said the airline invested and worked hard to keep fares as low as possible.<\/p>\n

\u201cOur cost base has increased by more than 40% since 2019, driven by factors including increased airport and aviation system charges and markedly higher supply chain costs.<\/p>\n

\u201cWe have signalled our concern that ongoing cost inflation is seriously jeopardising air connectivity in New Zealand.\u201d<\/p>\n

She said those costs were greater than general inflation.<\/p>\n

\u201cWe have not passed the full extent of these cost increases on to customers.<\/p>\n

\u201cWe continue to remove costs from our business and drive productivity improvements across the airline to buffer further fare increases in New Zealand, but this remains extremely challenging given the ongoing cost pressures.\u201d<\/p>\n

Air New Zealand\u2019s chief executive Greg Foran has called for more oversight of airport spending.<\/p>\n

Last week he said the airline was set to pay Auckland Airport $144 million this year and he expected it to be paying $723m by 2032.<\/p>\n

But Auckland Airport has said its $5.7 billion aeronautical infrastructure programme was adding resilience and capacity while improving customer experiences.<\/p>\n

Cheap fares still possible?<\/p>\n

Cath O\u2019Brien of Barnz said people could still get reasonable fares if they booked in advance.<\/p>\n

She suggested people use reputable local travel insurance companies if they did so.<\/p>\n

Some Kiwis unrealistically expected cheap flights at short notice on busy days to any possible domestic destination, she said. <\/p>\n

She said if airlines made every domestic fare $100 \u201cthen everybody would buy all of the tickets and there would not be any availability for people who needed to travel at the last minute\u201d.<\/p>\n

O\u2019Brien said many airlines had policies around bereavement, which people needing to travel at short notice should look at. <\/p>\n

John Weekes<\/a> is a business journalist covering aviation and courts. He has previously covered consumer affairs, crime, politics and courts.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cAirfare variations are largely influenced by inflation (CPI) and airline competition, factors which are outside the airport\u2019s control.\u201d…\n","protected":false},"author":2,"featured_media":82055,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[63058,63057,14740,2681,6224,138,2841,14736,63059,1437,209,1351,305,4729,5345,111,139,69,193,312,10117,7811,131,17450,1530,2963],"class_list":["post-82054","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-63058","tag-airfare","tag-airfares","tag-airport","tag-airports","tag-business","tag-country","tag-domestic","tag-faster","tag-global","tag-group","tag-had","tag-have","tag-highest","tag-increase","tag-new-zealand","tag-newzealand","tag-nz","tag-other","tag-says","tag-shot","tag-since","tag-than","tag-worlds","tag-years","tag-zealands"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/82054","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=82054"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/82054\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/82055"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=82054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=82054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=82054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}