Regional airlines struggling with sharply rising fuel and operating costs are set to receive $5.7 million in Government support, as ministers move to protect air connections serving smaller communities across Aotearoa.
Regional Development Minister Shane Jones and Associate Transport Minister James Meager have announced working-capital grants through the Regional Infrastructure Fund, saying jet fuel and aviation gas prices have increased by more than 50 percent since March.
The grants will range from $300,000 to $1.2 million, depending on each airline’s passenger numbers and flight movements. The money can be used for day-to-day operating costs including fuel and wages, with airlines expected to maintain their current service levels.
The Government says the temporary support is designed to protect regional routes that could otherwise become vulnerable, particularly connections relied on by people travelling for specialist healthcare, whānau commitments and business.
The latest funding builds on a regional air connectivity package established in 2025. Nearly $26 million in Government loans has already been provided to regional operators for aircraft purchases or leasing, maintenance and debt refinancing.
Air Chathams has received the largest share of that earlier support at $17.2 million, while funding has also gone to Sounds Air, Island Air, Golden Bay Air, Stewart Island Flights and Sunair.
The new grants are expected to provide financial relief over the next 12 months as regional aviation operators contend with higher costs while trying to maintain services connecting communities beyond the main centres.
#RegionalAirlines #RegionalDevelopment #ShaneJones #JamesMeager #RegionalInfrastructureFund #RegionalNZ #Aviation #Transport #AirChathams #SoundsAir #RegionalConnectivity #Whānau #MāoriNews #WaateaNews
