Flights to Cost More This Christmas Due to Rising Fuel Costs

Travelers heading away this summer can expect higher airfares over the Christmas period due to rising jet fuel costs and increased accommodation prices. Stats NZ reports domestic flight bookings in September rose 5.1 percent from a year earlier, while international fares jumped 12.3 percent, according to economist Benje Patterson.

Stats NZ reports domestic flight bookings in September rose 5.1 percent from a year earlier.

According to economist Benje Patterson, fares are higher over the Christmas period. Domestic travelers are likely to remain conservative with their spending due to higher living costs and a sluggish labor market.

Southwest Airlines hikes prices of domestic flights as rising fuel costs put pressure on airlines

Fuel Costs Drive Higher Airfares

Patterson noted that the fuel crisis has put upward pressure on airfares, alongside rising accommodation prices, though hotel costs are not climbing quite as sharply as plane tickets.

Singapore jet fuel surged from an average of US$85 a barrel in the first quarter of the previous financial year to an average of US$140. Air New Zealand confirmed it has raised its prices in response to significantly higher jet fuel costs. While higher fares have offset some of those expenses, the airline stated they have not covered the full impact of the price increases.

Holiday Flight Prices Soar Due to Rising Jet Fuel Costs: When to Book

While we can’t put a single percentage on how domestic fares this summer will compare with last, prices vary depending on the route, demand, availability and when customers book. We know affordability matters to New Zealanders, and we’re continuing to offer a range of fares across our domestic network. The best prices are generally available to those who book early.

Air New Zealand

Passenger Numbers and Airline Spending

Justin Lester of Dot Loves Data pointed out that total spending on airlines is up 15.92 percent from 2025 and 16.54 percent since 2024.

Transaction counts dropped 5.28 percent from last year while inching up just 0.36 percent since 2024. As these numbers suggest, average spend has increased by a lot, 22.32 percent from 2025, 18.14 percent from 2024, Lester said.

Rising holiday fuel costs could drive up airfares and trigger flight delays

Domestic passenger numbers fell 2.7 percent, and long-haul traffic dropped 2.3 percent, though short-haul passenger numbers managed a 3.7 percent increase. In its first-quarter update released on Wednesday, Air New Zealand reported carrying 1 percent fewer passengers compared to the same period a year earlier.

Patterson highlighted that international visitor numbers are growing strongly, with arrivals at Auckland and Christchurch airports pointing toward continued momentum over the summer season.