The Air New Zealand (NZ) to lift ticket fourth (4th) time in the year 2008 due to rising of fuel costs.

WELLINGTON, New Zealand - Air New Zealand will increase domestic and international fares from middle of July, the airline said last Thursday, blaming its fourth fare hike since March 2008 on rising fuel prices.

Domestic fares and those to and from Australia will rise 3 percent (3%) from July 17, while the international fares to North America, Asia and the United Kingdom (UK) will increase by an average of 5 percent (5%). The jet fuel is now priced above $170 a barrel, the air line could not continue to absorb the rising cost, said Deputy Chief Executive Norm Thompson. The fare increases would only partly recover the rising cost.

Last month, the carrier raised fares on many routes by an average of 4 percent (4%) that followed two hikes of about 3 percent in domestic fares earlier in the year. Air New Zealand announced or had signaled earlier that further hikes in ticket prices were likely because of high oil prices.

In April, the airline lower fiscal year profit guidance and it no longer expected to better its last year (2007) compared to this year (2008) because of the impact of fuel prices. It set its new forecast for normalized earning before tax and unusual items at between $156 million - $171 million. It had previously expected to match the $205 million posted in 2007.