Air New Zealand announced last week it was cancelling about 1100 flights through to early May in response to volatility in jet fuel prices caused by the conflict in the Middle East.
That represented about a 5% reduction of its total domestic and international schedule, and would impact an estimated 44,000 passengers.
Dunedin Airport chief executive Daniel De Bono said a total of 64 Air New Zealand flights would be temporarily cancelled at the airport from today until May 3, about 6% of scheduled flights across that timeframe.
Business South chief executive Mike Collins said the changes by Air New Zealand risked undermining business connectivity and regional growth across Otago and Southland — particularly at a time when the regions were experiencing strong economic growth and contributing significantly to New Zealand’s recovery.
‘‘We recognise the global pressures airlines are currently facing, including disruption to oil markets and rising jet fuel costs.
‘‘However, these latest reductions come on top of services that have already been reduced over recent years, and the cumulative impact on regional connectivity is becoming significant.’’
But he was confident it was a short-term challenge and the region could maintain its momentum.
Further reductions to flights would be ‘‘very worrying’’.
When flights were reduced and prices rose, people travelled less — meaning fewer visitors, fewer business trips and fewer opportunities for investment and collaboration, he said.
‘‘At a time when the South is helping drive national economic growth, maintaining strong connectivity into Otago and Southland should remain a priority.’’
New Zealand Airports Association chief executive Billie Moore said this was not the first time Air New Zealand had to deal with big increases in fuel prices, but it was particularly challenging given the airline’s financial position.
The airline last month announced a net loss after tax of $40million for the first half of the 2026 financial year — a result it said reflected the combined impact of ongoing fleet constraints, a slower recovery in domestic demand and rising costs, including persistently high aviation system inflation.
‘‘We really can't criticise this; it's an understandable step,’’ Mrs Moore said.
‘‘It obviously is frustrating and challenging for regions to see their capacity go backwards.
‘‘I do think that Air New Zealand has been taking care with how they're doing it. They are looking at routes that can be kind of consolidated and people that can be moved to other flights.’’
Asked if the 64 flights to be cancelled at Dunedin Airport was a significant amount, Mrs Moore said it was ‘‘probably on the higher end of impact’’, but it was still a bit hard to say.
The airport has about 170 flights per week.
Mrs Moore said the south of the South Island had seen ‘‘really significant economic growth and prosperity’’ and great business development, but it had been a struggle to get the connectivity that was expected to naturally flow from that.
‘‘The faster and more connected locations are, the more business is going to be done.
‘‘Anything that takes us backwards on that rather than forwards is something that we're really concerned about.’’
An Air New Zealand spokesperson said the airline understood how important air travel was.
‘‘In making these schedule changes we have tried to strike a balance between maintaining connectivity to all regions and our ability to reaccommodate passengers close to their original booking.
‘‘All customers impacted will be reaccommodated and will be eligible for a refund or credit if they are unable to fly.’’
