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Irene King: Former aviation boss says flight price hikes are a classic supply and demand problem

High demand is expected to drive up the cost of flights.

Air New Zealand is warning it's going to have to hike fares due to rising fuel costs, as more people start to fly again.

One aviation industry expert has compared our air fares to the same expensive prices we saw in the 1970s

Former aviation boss Irene King told Andrew Dickens Air New Zealand has a lot of cost pressures on them.

She says this is a classic supply and demand problem, underpinned by fairly savage price increases in their basic inputs.

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