Air NZ reduces domestic capacity by 2%, reviews fares

Air NZ is reducing flights on domestic routes and reviewing airfares as tourism slows and operating costs rise. An Air NZ spokeswoman said from July the carrier would begin making some mostly off-peak frequency reductions on its domestic trunk routes and some regional services. The result would be a reduction in domestic capacity of about 2% year-on-year, she said. Some fares were also being reviewed but there was no plan to change lead-in fares on domestic and regional services. "Given the impact of the sustained rise in the cost of jet fuel and the impact of other cost increases in areas such as airport landing fees, we are currently reviewing some fares," the spokeswoman said. Air NZ remained committed to all routes in New Zealand, she said. <br/>