The Aviation Industry Association of New Zealand has warned that escalating aviation fuel prices are placing significant strain on regional, rural and specialist aviation operators across the country.
AIANZ Chief Executive Simon Wallace said the issue extends well beyond commercial airlines, affecting the broader aviation ecosystem that underpins agriculture, conservation, emergency response and flight training.
“While jet fuel costs have received much of the attention, the entire New Zealand aviation system is under pressure,” Simon said.
Avgas, which is used in small piston‑engine aircraft, is critical for flight schools, tourism operators, agricultural aviation and rural services. Although avgas price increases have not been as dramatic as jet fuel, Wallace said they are still having a major operational and financial impact.
AIANZ is particularly concerned about fuel availability at regional and rural airfields, many of which rely on limited on‑site storage and one or two fuel pumps.
“Some rural airfields were running low on fuel. These airfields are absolutely vital for regional connectivity and essential services,” Simon said.
Many affected operators provide top‑dressing, pest control, vegetation management, firefighting support and aeromedical services, all of which are time‑critical and seasonally dependent. Wallace noted that the current period is especially important for agricultural aviation, with fertiliser spreading underway across sheep and beef farms.
“Operators are reporting very full order books already. Any disruption to fuel supply risks preventing farmers from getting fertiliser applied this autumn.”
AIANZ has also raised concerns about operators’ limited ability to pass fuel cost increases on to customers. In some cases, contracts explicitly prevent additional charges, leaving businesses to absorb rapidly growing costs.
Flight training schools are among the hardest hit. Wallace said these organisations operate with fixed fee structures and cannot recover fuel increases from students.
“Flight schools can’t pass these costs on. They’re having to absorb them, and that’s not sustainable indefinitely.”
AIANZ has been advised of helicopter flight training cost increases ranging from thousands of dollars per student per year, with no ability for those costs to be covered through student loans.
Previously, some operators contracted to Fire and Emergency New Zealand were unable to recover increased fuel costs under existing agreements. Simon said that issue was resolved late last week, providing some relief for emergency aviation providers.
However, similar flexibility has not been extended across all government contracts, and AIANZ continues to advocate for consistent, realistic approaches that recognise volatile operating costs.
“These fuel price increases are astronomical for some operators. We’re talking about businesses that perform essential services in rural New Zealand.”
AIANZ is engaging directly with government on the issue and is scheduled to meet with Associate Minister of Transport James Meager to discuss fuel supply resilience, cost recovery mechanisms and the importance of protecting regional aviation capability.
Simon stressed that aviation plays a foundational role in New Zealand’s economic and environmental systems.
“We cannot allow a situation where international airlines receive priority access to fuel at the expense of regional and rural aviation. The whole system matters.”
AIANZ will continue working with operators, fuel suppliers and government agencies to ensure the sustainability of New Zealand’s aviation sector during this period of heightened global uncertainty.