Air Fares Drop in March Quarter

Air Fares Drop in March Quarter

This week’s release of the Consumer Price Index by Statistics NZ show that air travel prices have dropped in the March 2010 quarter.

Combined with favourable exchange rates this makes 2010 one of the best times ever for New Zealanders to travel overseas, Chief Executive of the Travel Agents’ Association of New Zealand (TAANZ) Paul Yeo says.

International air transport prices fell 8.3 percent in the March 2010 quarter and domestic air transport prices fell 3.9 percent.

International air transport prices usually fall in March quarters following seasonal rises in December quarters and the fall in the March 2010 quarter follows a rise of 13.9 percent in the December 2009 quarter, which
was the largest increase since March 1981. However international air transport prices are now 0.7 percent lower than a year ago and 6.4 percent lower than two years ago.

Domestic prices are now 8.7 percent lower than a year ago.

“This reflects continuing strong competition between the three airlines on main trunk routes” Mr Yeo says.

ENDS

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