October Domestic Travel Update

Jet fuel prices reach record highs

Jet fuel prices climbed to record levels during September, adding further cost pressure for airlines and creating a potential flow-on effect for airfares and capacity.

According to Infometrics' latest analysis of jet fuel prices, US Gulf Coast jet fuel spot prices remained above US$4 per gallon through much of September, with the monthly average more than double the level recorded a year earlier.

For New Zealand, where flying is central to both domestic connectivity and international access, sustained increases in fuel costs can ultimately be absorbed through airline margins, higher fares, capacity changes or a combination of the three.

What this means for travellers: Businesses planning travel over the coming months should remain conscious of potential fare pressure, particularly for trips where travel dates or timings are fixed. Booking earlier and retaining some flexibility around schedules may help provide more options.

Air New Zealand's on-time performance improves again

Air New Zealand recorded another improvement in punctuality during September, with 87.3% of flights arriving within 15 minutes of schedule. This compares with 85.3% in August and 75.5% in September last year.

The result was also ahead of the global airline average of 77.7% for September 2026, reflecting continued improvements in operational reliability.

What this means for travellers: Greater schedule reliability gives businesses more confidence when planning time-sensitive trips, although appropriate connection times and checking flight status before travel remain important.

Air New Zealand adjusts its summer schedule

Air New Zealand has advised trade partners of a small number of schedule adjustments across its October 2026 to February 2027 network, as the airline continues to respond to high jet-fuel prices and focuses on operational efficiency.

Affected bookings are being progressively updated, with customers able to review their travel options where a schedule change impacts an existing itinerary.

The changes come ahead of the busy summer travel period, when availability can be tighter on popular routes and alternative services may be more limited.

What this means for travellers: If you have domestic travel booked between October and February, keep an eye on itinerary notifications, particularly where trips involve meetings, events or onward connections. If a schedule change impacts your plans, the Tandem team can help review the available alternatives.

CAA proposes lower passenger security levies

The Civil Aviation Authority is consulting on a proposal to reduce domestic and international passenger security levies by 5%.

Under the proposal, the domestic levy would fall from $10.91 to $10.36 per passenger, excluding GST, while the international levy would reduce from $22.30 to $21.19.

The CAA says improved operational efficiency and stronger financial reserves have created room for a possible reduction. Whether any saving is ultimately reflected in airfares would be a decision for individual airlines.

What this means for travellers: The proposed reduction is relatively small at an individual traveller level, but for organisations with significant travel volumes it is one of several underlying cost components worth monitoring as broader aviation costs continue to rise.

Auckland Airport transformation passes halfway mark

Auckland Airport's $3.9 billion transformation programme has now passed the halfway point, with more than 50% of the work associated with the new integrated domestic jet terminal and related projects delivered.

The programme remains on track for completion in 2029 and will eventually bring domestic jet and international travel together within one terminal.

Travellers will begin seeing more of the changes over the coming months. A new Zone C check-in area is expected to open this summer with 28 self-service kiosks and 15 automatic bag drops, while construction routes and temporary arrangements will continue to change as further stages are completed. Auckland Airport has outlined more detail on what has already been delivered and what comes next.

What this means for travellers: Frequent travellers through Auckland may notice their usual airport journey changing as construction becomes more visible. Allow a little extra time, follow airport signage and check any airport updates before travelling.

As always, we'll continue monitoring developments across New Zealand's travel network. If schedule changes, rising travel costs or disruption affect your plans, the Tandem Travel team is here to help keep your travellers moving.