Airways NZ proposes 7.7% price increase for airlines, up to $2.80 per seat

Airways New Zealand says price increases are needed even though it admits times are tough for the aviation sector, sparking immediate concern from key industry players. National carrier Air New Zealand said the price hike could have detrimental impacts on air fares, and the Aviation Industry Association said it struggled to see how the hike could be justified. Airways, the air traffic management service provider, today proposed an average annual price increase of 7.7% for airline customers from July 1. “This translates to a per seat increase of between 79 cents and $2.80 for commercial flights, depending on the aircraft capacity.” Airways said it was starting discussions with customers and the wider industry on pricing for the next three-yearly pricing cycle. Airways said it had more than 4000 air traffic service customers including airlines, airports, the Defence Force, commercial and private aircraft operators, recreational flyers, and drone operators. For general aviation, Airways proposed a 6.8% price increase for the 2026 financial year and a cumulative 10.5% price over the three years to July 1, 2028.<br/>