Wellington - Air New Zealand announced Thursday it was raising fares for the fourth time since March, blaming continuing increases in jet fuel prices.

Fares on long-haul flights to North America, Asia and Britain will rise by an average of 5 per cent on July 17 while flights on domestic routes and across the Tasman Sea to Australia will increase 3 per cent.

Norm Thompson, deputy chief executive of the state-owned national carrier, said, "With jet fuel now above 170 US dollars a barrel we cannot continue to absorb the significantly higher cost of fuel, of which this increase will only partially recover."

Air New Zealand raised fares on many routes by an average 4 per cent in June following two hikes of about 3 per cent in domestic fares since March. (dpa)