Air NZ in a spin over jet fuel rises

AIR New Zealand is considering fare increases and deeper job cuts as fuel costs rise and hedging contracts expire.

Chief executive Rob Fyfe said jet fuel prices in Singapore rose to more than $US79 a barrel this week, nearing a six-month high.

“If jet fuel prices stay at current levels then the benefits of our jet fuel hedging will start to run out this financial year,” Mr Fyfe said. “Fares could increase.”

The Auckland-based airline, New Zealand’s largest, has said it would slash 8 per cent of its 10,800 workforce to reduce costs. The carrier has raised fares four times since May 2004 as fuel prices have surged.

The Age