TEXT-Air NZ to raise short-haul int'l fares by 3 pct

(The following statement was released by the company)

WELLINGTON, May 15 - Air New Zealand's trans-Tasman and Pacific Island airfares are to rise by an average three percent as a result of ever increasing fuel prices.

The increase applies from 26 May for trans-Tasman airfares sold in Australia and New Zealand, and Pacific Island airfares sold in New Zealand and the Pacific Islands.

Air New Zealand signalled on 30 April when it increased domestic prices that trans-Tasman airfares were under review. Singapore jet fuel per barrel has increased by a further 12.5% since then from US$144 to today's price of US$162.

Air New Zealand regretted having to lift fares but could not continue to absorb the significantly higher cost of fuel, which this fare increase will only partially recover. The airline remains committed to driving costs within its control down in order to provide customers with everyday low airfares.