Growing operational costs are partially to blame for an increase in domestic airfares.
Air New Zealand's told travel agents domestic fares across all routes will be going up from midnight tonight.
House of Travel Chief Operating Officer Brent Thomas told Mike Hosking the airline is trying to cover rising fuel prices and wage costs.
“But obviously also they got an airline to run and profits to be made, and they’re looking to see where they can maximise their revenue streams and their profitability.”
Thomas says there is room for more flights and competition in the domestic market which could decrease the price of airfares.
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