New Zealand regional airline Originair posts 'horrific' year as jet fuel surge bites

RNZ Business reports Originair managing director Robert Inglis said the airline's operating losses widened in the latest fiscal year, describing it as the "toughest in our 32 years". Singapore Brent jet fuel briefly traded at $132 a barrel at the peak of the US-Iran tensions. Originair is based in Nelson and operates between Hamilton, Palmerston North and Christchurch.

Inglis told RNZ that "passing fuel costs on to fares puts pressure on the customer side too". Despite raising fares by an average of 14%, the company said margins kept shrinking. The Aviation Association of New Zealand has called for a hedging program to protect smaller operators against fuel-price volatility.

Transport Minister Chris Bishop said the government would "work with sector stakeholders" but ruled out direct fuel subsidies. Originair said it could thin out some routes by September and may have to call for additional funding from existing shareholders.