An economist says Air New Zealand had little choice but to up its domestic fares due to the rising cost of oil
An economist says Air New Zealand had little choice but to up its domestic fares due to the rising cost of oil
15 May 2018
The airline has announced it'll be increasing the cost of flights around the country by 5 percent from this Thursday.
Head of Private Wealth Research at Forsyth Barr, Rob Mercer says there's been a decisive shift in fuel prices in the past year.
He says the price of jet fuel has risen from around seventy US dollars a barrel last year, to around ninety.
Mercer says it'd be harder to increase international prices because it's a more crowded market.
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