Air New Zealand's told travel agents domestic fares across all routes will be going up from midnight tonight.
House of Travel Chief Operating Officer Brent Thomas says says he flies a lot domestically, and there could be capacity for more competition in the market.
He says a lot of the planes are full or near full, which would indicate there is still demand for flying even at current prices.
Thomas says the airline will be looking to maximise profitability, and cover rising fuel and wage costs.
