A Consumer NZ investigation has found that flying with Air New Zealand during school holiday periods could come at a steep cost for families, with evidence suggesting that the national carrier is cashing in on increased demand.
The study tracked prices for 648 trans-Tasman flights over 18 weeks, comparing fares from Air New Zealand and Qantas to see how they stacked up over two school holiday periods.
The findings showed that Air New Zealand flights increased by an average of 43% during the holidays, while Qantas fares rose by only 24%. On some routes, Air New Zealand’s price hikes were especially pronounced; the cost for a family of four travelling from Christchurch to Brisbane surged by 167% when booked just two weeks before departure, reaching $9,014 compared to $3,378 three weeks earlier.
The investigation highlighted Brisbane as the most expensive destination, with fares climbing sharply during the holiday periods. For example, tickets for a departure on 10 July, four days into the school holidays, were $3,916 more expensive than flights three weeks earlier. In the worst instance, families flying Air New Zealand faced paying $4,637 more than if they booked with Qantas on the same day.
The research also showed that Qantas offered a more stable pricing structure, with significantly lower increases during the same periods. For families travelling in the first week of the holidays, Air New Zealand’s flights were on average 34% more expensive than Qantas, equating to an additional $1,230 per trip.
Air New Zealand’s use of dynamic pricing—where ticket prices increase as demand rises—has come under scrutiny.
The airline defended its pricing model. In a statement to chrislynchmedia.com, it said demand-based pricing is not unique to Air New Zealand.
“It is standard practice across airlines, hotels and rental car companies. School holidays see demand soar and this approach allows us to manage supply and demand.
“We would love to add more capacity over these busy periods, however, with seven of our aircraft currently out of service due to global engine supply issues, there are no spare aircraft to add to the schedule. We encourage customers to book early to secure the best deals.”
Consumer NZ criticised the airline’s pricing tactics, awarding Air New Zealand its inaugural “Yeah, Nah Award” for exploiting New Zealand families during the holiday season.
The organisation questioned whether the airline was making sufficient efforts to accommodate increased demand by adding more flights or simply capitalising on its dominant market share.
With Air New Zealand holding a 43% share of the trans-Tasman market and recent regulatory approval for a code-sharing agreement with Virgin Australia, some consumer advocates have raised concerns about the lack of competition on these routes.
Without transparency on how many additional seats are made available during peak travel times, consumers are left questioning whether they are being taken for a ride.
Air New Zealand advised travellers to book as early as possible to secure the best deals but did not disclose how many extra seats were added to international routes during the holidays, citing commercial sensitivity.
