Air NZ domestic airfares to rise

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Air NZ is increasing their domestic airfares by five percent from this Thursday.

In a statement the national airline said it could no longer absorb increasing operational costs such as labour, fuel, goods and services.

Earlier this year the airline announced it was on track for its second highest profit in the company's history.

In February the airline said its near-record profit projection was driven by operating revenue growth of 5.6 percent and strong growth in the short-haul network. It reported Air NZ's passenger revenue reached an all-time record for an interim result, at $2.3 billion.

A Flight Centre spokesperson said fuel prices are increasing so the announcement isn't surprising.

"Over the last few years New Zealanders have benefitted from some very sharp pricing in airfares, due in large to favourable fuel pricing and an increase in carriers in the market driving competition, we've also seen airlines put a lot of investment into upgrading their crafts meaning we now have planes that can fly further, with more comfort and better fuel economy."

As well as booking via a travel expert, Flight Centre recommends booking in air fares as far in advance as possible.