Air New Zealand announced the cancellation of approximately 1,100 flights through early May 2026, affecting 44,000 passengers, as jet fuel prices double due to the Middle East conflict. The reductions represent a 5% cut in scheduled services, targeting off-peak domestic and international routes proportionally.
Chief Executive Nikhil Ravishankar stated, “We know that affordability around flying is a real challenge. Even in these unprecedented times, there’s a limit to what we can pass on to our customers.” He noted that New Zealand-U.S. flights remain unaffected due to demand for alternative Europe routes. Affected passengers will be rebooked, mostly same-day.
The surge stems from the Iran war disrupting the Strait of Hormuz, a key chokepoint for oil and LNG, pushing jet fuel from $85 to $200 per barrel. Airspace closures over Iraq, Iran, and the Persian Gulf force detours via the Caucasus or Egypt-Oman, adding flight hours and fuel burn. Dubai’s hub, handling over 1,000 daily flights, has lost 10% capacity.
Domestic impacts include reduced frequencies from Marlborough, New Plymouth, Tauranga (31 Auckland rotations cut), Nelson (2-10 weekly to Auckland), Gisborne (24 Auckland rotations), and Dunedin (15 to Christchurch). Air New Zealand raised fares by $10 domestic one-way, $20 short-haul international, and $90 long-haul, while suspending its 2026 earnings forecast after a $59 million first-half loss. The International Energy Agency released 400 million barrels of oil to stabilize prices, but volatility persists.