Air New Zealand axes 1,100 flights as fuel costs and Middle East tensions bite
Air New Zealand will cancel around 1,100 flights by early May 2026 due to rising fuel costs and disruptions from the Middle East conflict. The move follows a sharp increase in oil prices, which have climbed by 10-15% since late 2023. About 44,000 passengers will be affected by the changes.
The airline blamed soaring jet fuel prices for the decision, despite efforts by the International Energy Agency to stabilise crude markets. Brent crude reached $85-93 per barrel in early March 2026, up from $80-85 in October 2023. Prices briefly spiked above $100-120 during peak tensions before easing slightly.
Both domestic and international routes will see reductions, except for flights between New Zealand and the US. The cuts represent roughly a 5% drop in scheduled services. Affected passengers will be rebooked, with most offered alternative flights on the same day. The airline plans to reduce services 'proportionally across the board', focusing on off-peak flights. This approach aims to maintain regional connections while managing costs during the fuel crisis.
The cancellations will disrupt travel for thousands of passengers in the coming weeks. Air New Zealand has stressed that rebooking options will be available for those impacted. The airline's decision reflects broader challenges in the aviation industry as fuel prices remain volatile.
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