Air New Zealand cuts flights as oil price surge wreaks havoc on travel

WELLINGTON — Air New Zealand said on Thursday it would slash 5% of its flights, or around 1,100 services, through early May as the Iran war sends jet fuel prices surging and disrupts travel even in rural areas thousands of miles from the conflict zone.

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The New Zealand carrier led other airlines including Australia’s Qantas Airways, Scandinavia’s SAS and Thai Airways in announcing airfare hikes this week, blaming an abrupt spike in the cost of fuel that has rattled the global aviation sector.

The Middle Eastern conflict has forced many airlines to cancel flights to and from the region or use alternative routes due to drone and missile fire that has severely curtailed airspace and caused the biggest aviation industry crisis since the pandemic.

Oil prices climbed on Thursday after Iraqi security officials said Iranian explosive-laden boats had hit two fuel oil tankers amid other global supply disruptions and Iran said the world should be ready for oil at $200 a barrel.