Air New Zealand cuts 1,100 flights over fuel price fears

Air New Zealand has announced the cancellation of approximately 1,100 flights scheduled over the next two months, citing the severe economic fallout from the escalating conflict in the Middle East. Chief Executive Nikhil Ravishankar confirmed Thursday that the reduction represents roughly 5% of the carrier’s total services and is expected to disrupt travel plans for 44,000 passengers.

While the majority of the cuts will impact domestic routes within New Zealand, some short-haul international services are also being scrapped. However, flights connecting New Zealand to the United States will remain unaffected; Ravishankar noted that demand for these routes has actually increased as travelers seek alternative gateways to Europe that avoid the volatile airspace near the conflict zone.

The move comes as the global aviation industry reels from a dramatic spike in fuel costs. According to Ravishankar, the price of jet fuel has surged to roughly $170 a barrel—double the typical rate of $85—since the outbreak of hostilities. The chief executive defended the schedule changes as a necessary measure to ensure the airline remains fuel-efficient and can maintain affordable ticket prices for the remainder of its operations.

The fuel crisis was triggered by a sharp rise in global oil prices, which recently surged past $100 a barrel following the effective closure of the Strait of Hormuz. The strategic waterway was paralyzed after Iranian forces launched retaliatory attacks on commercial shipping in response to the joint U.S.-Israeli airstrikes on February 28 that resulted in the death of Iran's Supreme Leader, Ayatollah Ali Khamenei.

Air New Zealand had already begun adjusting to the new economic reality earlier this week by raising ticket prices across all routes. The airline is currently working to re-accommodate the 44,000 affected passengers, focusing on consolidating travelers from canceled off-peak flights onto remaining scheduled services to minimize the total number of stranded customers.