Air New Zealand said it would increase fares for all flights from March 18 because of rising fuel costs.
Domestic and long-haul fares would go up about 7% and tickets to Australia and the Pacific would cost about 8% more to "recover jet-fuel cost".
"Over the past month, jet fuel has increased from $US114 ($NZ155) per barrel to $US130 per barrel, adding almost $US10 million per month to the airline's operating cost," the airline said in a statement.
A spokeswoman said there would be no rise in the $50 special stand-by fares to and from Christchurch, which would apply until the end of the month.
Ms Kinnaird said Air New Zealand's biggest near-term risk remained its exposure to the "cracker spread" - the spread between the jet-fuel price and the oil price, which had risen $15 to $30 recently.
However, Forsyth Barr retained the view the Rugby World Cup being held in New Zealand in September and October, the Virgin Blue transtasman alliance and the introduction of the new Air New Zealand fleet should lead to earnings growth in the 2012 full year.
Ms Kinnaird valued Air New Zealand at $1.90 a share and maintained her buy recommendation. Air New Zealand last traded at $1.24.
The rise by Air New Zealand followed an earlier announcement by Qantas its international fuel surcharge would increase again next week as political instability in the Middle East affected oil prices.
The one-way fuel surcharge for transtasman and Pacific-region flights will rise $A30 ($NZ41) to $A105, while those travelling to the Americas and India will see increases of $A30, and those heading to Europe will be charged $A45 more from March 17.
Qantas chief executive officer Alan Joyce said the airline would continue to closely monitor fuel prices and respond accordingly.
Singapore Airlines, which operates daily flights to Auckland and Christchurch, is also imposing a fuel surcharge of between $US216 and $US256 for travel to and from New Zealand.
House of Travel sales director Brent Thomas said the increases were "not good news, but not unexpected".
"We've all gone to the fuel pumps and paid more for filling up our cars, so it's just a matter of time [before] airline companies need to put their prices up as well," Mr Thomas said.
He did not think the fare hikes would affect the number of people travelling.
"We are slowly coming out of a recession, and having a holiday is still one of the most important thing for most people," he said. "Despite a backdrop of recession last year, the number of New Zealanders travelling still went up by 4%. The slight rise in air fares is not going to affect people's holiday plans too much."
Different airlines would react to the rise in fuel prices at different times, and travellers who shopped around could still find some that had yet to respond, Mr Thomas said.
- Additional reporting by The New Zealand Herald
