Air New Zealand confirmed this morning that it has implemented initial fare changes, cautioning that if the conflict in the Middle East continued, it would take further pricing action.
IATA’s weekly monitoring of jet fuel prices has laid bare a dramatic 58% rise from US$99.40 to US$157 a barrel on last week.
Air NZ also pointed to an increasingly volatile crack spread – the difference between crude oil and the price of refined jet fuel – as creating added uncertainty.
“Since the conflict began, the crack spread has been particularly volatile, widening from approximately US$22 per barrel before the conflict to as high as US$115 per barrel,” Air New Zealand reported.
As a result, the airline has suspended its 2026 guidance for the foreseeable future, with the crisis expected to “meaningfully affect” its second-half earnings.
Network and schedule adjustments were also flagged. The share price for Qantas and Virgin Australia both dropped this week on the back of the jet fuel crisis, however their prices have rallied in today’s trading.
Both carriers have been contacted about the possibility of making similar moves.
