Air New Zealand increases fuel surcharge for tickets sold in Australia

Saturday, 04 May, 2006 0

Due to escalating fuel prices, Air New Zealand has advised today it will increase the YQ surcharge (incorporating both the airline’s current fuel surcharge and insurance levy) on all tickets issued within Australia on or after 06 May 2006.

The increase includes:

Australia to New Zealand/Pacific Islands (excluding Perth) will increase $7 to $62 per sector

Perth to New Zealand/Pacific Islands will increase $14 to $96 per sector

Australia to USA (excluding Perth) will increase $11 to $104 per sector

Perth to USA will increase $16 to $138 per sector

Australia to London (excluding Perth) will increase $17 to $166 per sector

Perth to London will increase $22 to $200 per sector

Last week Air New Zealand Chief Financial Officer Rob McDonald said Air New Zealand regretted having to increase fares but the numbers were stark.

“Fuel is now our number one cost. The price of benchmark Singapore Jet Fuel has more than doubled from around US$40 in April 2004 to US$89 a barrel today.”

Mr McDonald said this meant Air New Zealand’s fuel bill had risen from NZ$480 million in FY04 to nearly NZ$1 billion in FY06.

“Until now customers have been shielded from much of the effect of these price rises by the Airline’s fuel hedging programme. The Airline has also borne additional fuel costs over and above its hedging, avoiding passing those costs on to customers,” he said.

But recent falls in the value of the New Zealand dollar against the US dollar and the fact that Air New Zealand’s more favourable fuel hedges have rolled off compound the situation and mean this shortfall must now be addressed.

“This is a business that is very sensitive to fuel price rises. Every US$1 increase in the price of jet fuel forces down our EBIT by US$8 million per annum before hedging. In the last month alone, fuel prices have increased by nearly US$10 per barrel,” Mr McDonald said.

below social share icons

Graham Muldoon

With long periods of Thailand’s History, according to evidences and studies, Sukhothai was the first kingdom of Thailand. At that time, an early Thai...

River cruising is a treat for the senses, allowing you to see, touch, feel and experience the world like never...

In 2019, Buffalo Tours and Olympus Tours joined the Flight Centre Travel Group (FCTG) family and formed Discova. With the...

Why Avalon Waterways: Happiness flows on an Avalon river cruise. From Asia to South America and Europe to the Nile,...

Our leadership is bold. Our agility thrives on open innovation and we embrace the new, whether it’s diversity, trends, challenges....

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels...

At Visit California, our mission is to develop and maintain marketing programs – in partnership with the state’s travel industry...

Ensuring our guests have an unforgettable experience while sailing with us is paramount; however, your health and safety remains our...

SAINT LUCIA IS NO ORDINARY ISLAND Equal parts beauty and mystique, Saint Lucia captivates anyone who sets foot on her...

Nium was founded on the mission to build the global payments infrastructure of tomorrow, today. With the onset of the on-demand...

If you’re thinking of cruising, there’s a very good chance you’re considering a Carnival cruise. Growing since our founding in...

IHG Hotels & Resorts: Redefining Hospitality Excellence IHG Hotels & Resorts is a globally renowned hospitality company that stands at...

We work with reliable data providers with global coverage, that guarantee data representativeness as well as compliance with International Personal...