It said the guidance it issued last month was no longer appropriate due to what it said was 'unprecedented' volatility in fuel prices.
The airline expects a meaningful impact on its second half earnings.
Air New Zealand said it had put in place initial fare changes.
But it said it may need to take further action on its network and schedule if high jet fuel prices continued.
The national carrier said the difference in the crack spread price - the margin charged by refineries - had jumped from US$22 barrel to as high as US$115.
Airlines are charged for the Brent crude price of a barrel of oil - hovering around $US100 - and the crack spread price.
Air New Zealand shares had fallen nearly 8 percent on Monday.
Oil prices are up about 8 percent to US$99.90 a barrel, after climbing to a high of US$119.50 a barrel overnight, its biggest-ever absolute price jump in a single day.
Reuters reports that some jet fuel prices have doubled since the start of the conflict putting pressure on carriers already having to reroute to avoid the Middle East conflict and cater to thousands of stranded passengers trying to leave the region.
