Cath O'Brien: Board of Airline Representatives on the price of airfares increasing due to the surging cost of jet fuel

Some people could be put off travel as surging jet fuel costs push up airfares. 

Air New Zealand's increasing its domestic fares by $10, its short-haul fares by $20, and its long-haul fares by $90. 

Air Chathams is raising its standard fare by $20. 

Board of Airline Representatives Executive Director Cath O'Brien told Mike Hosking while it's a little early to say what will happen, it's likely demand will drop. 

She says the increase in the price to travel, coupled with the challenge of travelling to certain places, could see people change their plans. 

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Episode Transcript

Speaker 1 (00:00):
Part of the oil price fall out, seeing Air New
Zealand of course to spend their earnings guidance put their
prices up. Kather Bryan's executive director for the Border of
Airline Representatives and is back with there's Kath morning to you.
Good morning mate, this is everybody. I mean, we're focusing
on the New Zealand because we gown the airline. But
I mean contents have put their prices up. Everyone's going
to put their prices up, aren't they.

Speaker 2 (00:17):
Yeah, certainly. You know, price rises are kind of inevitable
at the moment, and multiple airlines are responding.

Speaker 1 (00:24):
Will we see demand drop because what we've learned out
of COVID is you can charge anything people want to
buy a seat.

Speaker 2 (00:32):
Yeah. Look, I think we are going to see demand
changes and it is a little early to say, but
that increasing price of the travel and the challenge of
the travel depending on where you're going, you know, may
see people change their travel plans. And I think that's
a further effect that were yet to properly see.

Speaker 1 (00:52):
Is Air New Zealand an outlie given there in anemic state? Anyway,
this has come along at the worst possible time.

Speaker 2 (00:59):
Yeah, certainly they are already in a very difficult position,
and I think that's what sets them apart, you know
from other airlines making the same sorts of choices. They've
got fewer cards to play, and they've very sensibly made
that decision to suspend guidance.

Speaker 1 (01:13):
I've read United the bloke who runs United yesterday said yes,
it'll hit Q two for us. But we're seeing a
huge increase in demand out of the Middle East because
you can't go there for now, in through the America's
up through Asia. Does the New Zealand gain from that
as well as people readjust their travel, Yeah.

Speaker 2 (01:30):
I think you know there will be some change in
travel and potentially we might see more shorthaul for example,
you know from this market to the Australia or Pacific destinations,
and certainly in New Zealand will see some of that benefit,
but that might be more of a swap of demand
from one to another rather than new demand.

Speaker 1 (01:48):
What about Nick Smith yesterday, the angstiness out of places
like Nelson root Cuts? Is that real? And if it is,
how bad is that?

Speaker 2 (01:55):
Yeah? I think that's vere in New Zealand to speak to.
And I think you know there will have to be
some difficult choices, and I think it's not clear yet
exactly what those will be.

Speaker 1 (02:06):
Okay, Keath, nice to talk to you. Kathera Bryant, who's
with the Border airline representatives. Quantus they've said five percent.
They gave some numbers in New Zealand. Where's Nichol? By
the way, I mean, hello Nichol, good morning. You might
want to talk here. But this reminds me of Greg
furhim when he first arrived in the country and he
didn't want to talk to us. He said his head
down was bum up and he had a COVID problem
to deal with, which is fair enough, but at times

(02:27):
like this, the head of a New Zealand needs to
be front and center. Quantus five percent, so in New
Zealand is saying like ten dollars a year and ninety
dollars if you on a flight in New York. Quantus
are saying generally it'll vary root to rout, but they're
talking about five percent.

Speaker 2 (02:41):
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Speaker 1 (02:45):
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