When a flight between international European cities such as London and Barcelona can be booked for less than $100, why does it often cost so much more to just hop around Aotearoa?
Breakfast this morning asked viewers for feedback on the cost of flying, and the responses indicated a trend of soaring prices. A trip from Dunedin to Palmerston North cost one traveller over $1000, while two adults and one child paid $2500 to fly to Queenstown from Auckland.
Air NZ's Chief Customer and Sales Officer Leanne Geraghty joined the programme to explain the heightened prices and how travellers can find more down-to-earth deals.
She said there are ranges of airfares available and that a variety of factors can influence ticket prices.
"When we form airfares, there are a lot of elements that go into that," she said. "That could be the aircraft type, it's demand, it's our cost base, [and] it's the duration of the flight."
She attributed higher domestic prices in Aotearoa to the heightened demand of flights that the Air New Zealand fleet cannot currently meet.
"The bigger the range we can offer, the more people that can travel... ultimately that comes back to capacity and we are working really hard to get our capacity at levels that will ease airfares," Geraghty said.
Air New Zealand is set to invest $3.5 billion in aircraft in the next period, Geraghty saying the new planes should help bring down prices, but cannot stop operational costs for the airline that are up 25% on pre-Covid levels.
Geraghty said Air New Zealand has ongoing sales and "more surprises" to come next month, and advises travellers to plan ahead and keep an eye on differences in flight costs, even if they're just hours apart.
"Book early, book when the sales are on, and be flexible with your travel plans."
Watch the full interview in the video above.
FAQs
This comes about because New Zealand is a small market with expensive and rising operating costs. Fewer seats lead to higher prices, higher costs lead to fewer people travelling, which leads to fewer seats….
Why are domestic flights in New Zealand so expensive? ›
This comes about because New Zealand is a small market with expensive and rising operating costs. Fewer seats lead to higher prices, higher costs lead to fewer people travelling, which leads to fewer seats….
Why are tickets to New Zealand so expensive? ›
One major example is ground handlers, which airlines need to operate. “It's actually pretty difficult to get ground handling here in New Zealand,” O'Brien said. “With constrained supply generally comes increased prices.” Then there were all sorts of other supply chain issues that impacted the aviation industry.
Why are domestic flights expensive? ›
Airfares are influenced by the laws of supply and demand. Think popular routes, busy seasons, urgent bookings and expensive flight tickets. Travel demand fluctuates depending on the season as there are more travellers flying during summer, Christmas and on holidays than shoulder time.
Why are prices so high in NZ? ›
One of the primary reasons for the high costs in New Zealand is its relatively small and isolated market. The limited size and remote location make it challenging for the country to support a competitive market: Fewer competitors mean higher profit margins.
Is Air New Zealand a good airline to fly? ›
Air New Zealand has been ranked the best airline in the world by AirlineRatings.com, a website for airline safety and product reviews. The airline beat Qatar Airways, which held the title in 2021 and 2022, to secure the top spot.
What is the cheapest day of the week to fly to New Zealand? ›
The Cheapest Days to Travel to New Zealand
It is on average 12% cheaper to book international flights to New Zealand on a Monday, Tuesday or Wednesday than over a weekend flight for instance.
How much is a ticket from the US to New Zealand? ›
Cheap Flights to New Zealand from $559 - Expedia.
What is the cheapest month to fly to New Zealand? ›
Looking for the cheapest ticket prices to New Zealand? It looks like March is currently the cheapest time to fly.
What is the best way to get to New Zealand from USA? ›
The best way to travel to New Zealand is by plane, and heaps of major airlines fly to New Zealand. Air New Zealand, our very own airline offers a top-quality flying experience (with plenty of great Kiwi hospitality) and flies direct to New Zealand from a number of countries.
Tuesdays may not be favorable for booking, but if you're hoping to score major savings, booking your departure on a Tuesday or Wednesday is a surefire way to do so. Mid-week flights offer the best deal prices in comparison to flights departing the rest of the week.
How far in advance should I book domestic flights? ›
"Typically, we tell travelers for domestic trips to start monitoring prices three to four months in advance of a trip," Schwimer said. "Expect to book one to two months in advance." For international trips, the window is a bit larger.
What is the cheapest day to book a flight? ›
As previously mentioned, booking airfare on Sunday is cheaper than other days of the week, especially Fridays. Be willing to fly mid-week. Since Thursdays tend to be the cheapest day to fly, see if you can tweak your travel plans so you depart and fly home during the week instead of on weekend days.
Why is New Zealand so unaffordable? ›
A poor relationship with regulation is one of the reasons for our cost of living being so high, Sam Stubbs says. There are many reasons, and it would be wrong to pin it on one thing alone, but to my mind, one long-term trend has certainly been increasing our cost of living - poor regulation.
How bad is New Zealand inflation? ›
Stats NZ figures showed consumer prices rose 0.5 percent in the three months ended December, taking the annual inflation rate down to 4.7 percent from 5.6 percent, the lowest since June 2021.
Is there a cost of living crisis in New Zealand? ›
Household living costs rose 7 per cent in the 12 months to the December 2023 quarter, outpacing inflation, Stats NZ said today. But the cost of living for the average household may have peaked, as it was lower than the 7.4 per cent increase recorded in the September 2023 quarter.
What time of year is cheapest to fly to New Zealand? ›
Choosing the Cheapest Travel Times
The shoulder seasons, or off-seasons, are 3-4 month periods where flight tickets and traveling expenses in New Zealand are cheaper. To save money on plane tickets, visit between March and May, June and August, or September and November.
Why are flights from Sydney to NZ so expensive? ›
The rising cost of fuel is the main reason, University of Queensland's tourism and airlines expert Pierre Benckendorff says. "The price of crude oil has been high from about late 2022 through to 2023 into 2024 ... and fuel increases are often passed on to consumers," Dr Benckendorff says.
Where is the cheapest place to fly into in New Zealand? ›
The cheapest airport in New Zealand is Wellington – we've found flights from $673.
How much does air NZ charge for domestic baggage? ›
Prepaid Extra Bags charges
| Flights (pricing in USD) * | 1st and 2nd Extra Bags |
|---|
| New Zealand domestic flights | $30 per bag |
| Flights between New Zealand & Australia/Pacific Islands (except Perth & Tahiti) | $55 per bag |
| Long haul flights (including between New Zealand and Perth or Tahiti) | $90 per bag |
