Airways New Zealand has today confirmed new prices for its air traffic management services for the next three-year pricing cycle.
Every three years, Airways consults with its customers and stakeholders on proposed operating and capital expenditure, target revenue and service prices for the provision of air traffic control services. Consultation commenced in April and closed in July.
Throughout the consultation process, Airways has acknowledged the ongoing challenges facing the New Zealand aviation industry as it grapples to recover from the impacts of the COVID-19 pandemic. In setting prices, Airways has balanced cost management in the current industry context with our obligations to provide a safe, efficient and reliable service now and into the future.
Airways has today confirmed an average price increase of 17.7% across three years for commercial airlines, which translates to an increase of 7.8% in year one, 6.5% in year two and 2.5% in year three.
New pricing will come into effect from 1 September and Airways will not look to recover the cost increase from 1 July to 31 August 2025. This means the effective price increase for year one is 6.5%.
In terms of how this translates to individual passengers, Airways calculates an indicative price per seat increase over the three-year period of $1.20 for a Sydney to Auckland flight, $1.44 for Auckland to Christchurch, $3.62 for a flight from Auckland to Napier and 36 cents for a flight from Wellington to Nelson.i
For GA customers operating aircraft less than five tonnes, Airways will apply an inflationary price increase of 11% over the FY26-28 period, which comprises a 6.8% increase in year one, 2.3% increase in year two and 1.9% increase in year three.
"We are operating in the same environment as our customers and are acutely aware of the challenges to deliver services in an increasingly more expensive operating context. Our pricing is based on the number of flights scheduled in and out of each airport. For Airways, we have the challenge of being required to maintain the agreed levels of service at a time when domestic flight volumes are at 90% of levels seen in 2019." Says James Young, Airways Chief Executive.
The final prices and Airways’ response to customer feedback are outlined in the consultation response and decision document. This document, as well as all customer submissions are published on the Airways website. Airways thanks all submitters for their constructive feedback on the proposals.
In addition to feedback on the pricing proposal, feedback was also received on the Pricing and Service Frameworks, which define the parameters for Airways’ delivery of services. Airways intends to review and seek further feedback on the frameworks to explore whether any changes are necessary.
ENDS
For more information contact:
Liz Patrick, Communications Manager, Airways New Zealand
P: +64 21 438 243 E: communications@airways.co.nz
Note to Editors:
Airways’ cost per seat for a commercial flight depends on the aircraft size and capacity. The below examples are illustrative only showing the potential final FY26-28 pricing on a cost per seat basis for commercial airlines operating aircraft above five tonnes.
- Sydney to Auckland flight on an A321 Neo aircraft is an increase of $1.20 over FY26-28 (total cost per seat of $7.73 for FY28).
- Auckland to Christchurch flight on an A320 aircraft is an increase of $1.44 over FY26-28 (total cost per seat of $9.82 for FY28).
- Auckland to Napier flight on an ATR 76 aircraft is an increase of $3.62 over FY26-28 (total cost per seat of $12.83 for FY28).
Similarly, for aircraft five tonnes and below, an example of cost increase is below.
- Wellington to Nelson flight on a Cessna 208 aircraft is an increase of $0.36 over FY26-28 (total cost per seat of $3.55 for FY28).
About Airways
Airways New Zealand provides air navigation services within New Zealand airspace and across our Auckland Oceanic Flight Information Region - one of the largest airspace regions in the world.
We are also responsible for maintaining and investing in the aviation infrastructure that supports New Zealand’s air traffic management system.
Alongside our core business providing air traffic management services in New Zealand, Airways International delivers air traffic management consultancy, airspace design, and training products and services around the world.
Airways employs approximately 800 staff in highly skilled and technical roles. Our people work across two surveillance centres in Christchurch and Auckland, 19 towers and corporate offices in Auckland, Wellington and Christchurch.