Air NZ fares going up by 5% on domestic routes from Thursday

Air New Zealand will increase its domestic fares by 5% from Thursday. Travel agents say they received the news from the airline Monday, and Tuesday the airline confirmed it could no longer absorb extra costs. "We are increasing domestic airfares by 5% in response to operational cost pressures, including labour, fuel, goods and services, which we're unable to continue to absorb," a spokeswoman said. Jet fuel prices are up 54% on a year ago and while the fare increase will apply to domestic fares, Air New Zealnd international fares are also under review. Jetstar is holding its fares around New Zealand, for now. "Our focus is on providing the lowest fares we can however we regularly monitor all our costs, including the rising fuel prices," said a spokesman.<br/>