Nine To Noon Business commentator Victoria Young
Mar 16, 2026
Victoria Young, BusinessDesk editor who covers corporate and economic news, breaks down rising fuel costs and what they mean for Air New Zealand. She explores how hedging horizons, route and staff cuts could follow. Victoria also outlines construction collapse fallout and discusses the timing and likely succession at Fonterra.
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Air New Zealand's Massive Fuel Cost Shock
- Air New Zealand faces acute fuel-cost exposure as jet fuel crack spreads reached about US$80 per barrel, far above a roughly US$20 comfort level.
- Victoria Young notes analysts estimate losses of around US$2.5–5m per day despite the airline's hedging, stressing huge near-term earnings risk.
Hedge Window Leaves Airline Vulnerable
- Air New Zealand's hedges cover roughly six months, leaving significant unhedged exposure if prices stay high beyond that window.
- Victoria contrasts peer hedging (Qantas ~81%) and warns strategic review decisions may be forced by prolonged fuel rises.
Higher Fuel Could Reshape Route Network
- Rising fuel costs could force deeper cuts in routes or labour as Air New Zealand's second-largest cost is fuel and largest is labour.
- Young highlights regional routes and public-service obligations as most at risk amid potential downsizing.