Jetstar will suspend flights between Auckland and the Sunshine Coast, and Christchurch and Cairns, from late October – and the industry’s peak body says governments have only themselves to blame.
Airlines for Australia and New Zealand (A4ANZ) has long warned that escalating taxes, fees and regulatory costs would inevitably result in higher fares, reduced services, or both. Chair Professor Graeme Samuel AC said Jetstar’s decision was proof the tipping point had arrived.
The low-cost carrier cited lower-than-expected demand and a significant rise in operating costs, including the imminent $10 increase to Australia’s Passenger Movement Charge, which will lift the levy to A$80 per passenger. Jetstar also pointed to a broader escalation in aviation-related taxes, transport fees, and government and airport charges on both sides of the Tasman, saying the cumulative pressure was hitting low-fare carriers hardest.
The PMC hike is far from the only pressure point. AusCheck credentialling fees for aviation workers have jumped from $92 to $262 per employee, Airservices Australia is proposing double-digit increases to air traffic control charges, and airport passenger charges are rising at roughly twice the rate of inflation – all while airlines absorb elevated fuel costs driven by Middle East conflict.
“Individually, each increase may appear manageable,” Samuel said. “Collectively, they represent a growing cost burden that ultimately flows through to consumers and undermines the viability of marginal air services.”
Thin trans-Tasman leisure routes – the kind served by low-cost carriers on tight margins – are always first to go. A4ANZ’s message to Canberra and Wellington is blunt: keep treating aviation as a revenue source rather than an economic enabler, and expect fewer routes, less competition and higher fares.
Customers booked on suspended services will be rebooked on alternatives or offered a refund.
