AUCKLAND — Air New Zealand will cancel about 1,100 flights across its network through early May, affecting roughly 44,000 passengers as the carrier responds to mounting operational pressures and rising jet fuel costs.
Despite the reductions, the airline said it will continue operating most of its planned schedule, carrying around 1.9 million passengers during the period. The carrier added that many customers affected by the cancellations will be rebooked onto alternative flights, often on the same day.
The changes include several services to and from Dunedin Airport as Air New Zealand adjusts parts of its domestic network over the coming weeks.
Domestic Network Adjustments
The airline confirmed that services from Dunedin Airport will see reductions on several key routes linking the city with major New Zealand hubs.
Flights between Dunedin Airport and Christchurch Airport will be reduced by 15 rotations. This equates to roughly two to three fewer return services per week on the route.
The route between Dunedin Airport and Auckland Airport will lose eight rotations, averaging about one to two fewer weekly services.
Flights connecting Dunedin Airport and Wellington Airport will also be reduced, with nine rotations removed from the schedule. That reduction translates to approximately one to two fewer return services per week.
Air New Zealand said the adjustments represent a targeted reduction rather than a large-scale network cut, aimed at balancing demand and operational constraints.
Passengers Being Rebooked
Air New Zealand Chief Executive Officer (CEO) Nikhil Ravishankar confirmed the airline is reaching out to affected customers and working to minimize disruption.
“Air New Zealand Chief Executive Officer (CEO) Nikhil Ravishankar confirmed the airline is contacting affected customers and moving most travelers to alternative flights on the same day when possible, Otago Daily Times reported.”
The airline said its goal is to ensure most passengers can continue their travel plans with minimal delays.
Rising Fuel Costs Driving Airline Decisions
The flight reductions come as airlines face increasing cost pressure from surging jet fuel prices.
The increase is linked to conflict in the Middle East, which has disrupted energy supply routes and pushed fuel prices higher.
The Strait of Hormuz, a critical shipping route that carries up to 20 percent of the world’s oil supply, has been severely disrupted. The situation has pushed aviation fuel prices significantly higher.
Fuel is typically one of the largest operating costs for airlines, and even modest increases can significantly affect profitability.
In response to the surge in costs, Air New Zealand suspended its earnings guidance earlier this week and announced fare increases across its network.
Domestic fares will rise by about $10, short-haul international fares by $20, and long-haul international fares by $90.
Wider Airline Industry Impact
Air New Zealand is not the only airline adjusting prices as fuel costs rise.
Carriers across the region have also announced fare increases in recent days as aviation fuel prices continue to climb.
Qantas (QF) and Jetstar (JQ) confirmed fare increases this week after aviation fuel prices surged, highlighting the wider impact on the airline industry.
Despite the adjustments, Air New Zealand said its United States routes remain strategically important. These services play a key role in connecting passengers to Europe, particularly while airspace disruptions continue in parts of the Middle East.
Financial Pressure on the Airline
The airline has already been navigating financial challenges over the past year.
Air New Zealand previously reported a half-year loss of $40 million for the six months ending in December. During the same period the previous year, the airline posted a profit of $106 million.
The shift reflects rising operating costs and a more difficult environment for airlines globally, with fuel price volatility, geopolitical tensions and supply chain issues continuing to shape the industry outlook.
Air New Zealand said it will continue monitoring market conditions as it manages costs while maintaining connectivity across its domestic and international networks.
