Air New Zealand will hike domestic and trans-Tasman fares, with trans-Tasman flights from Wellington to Melbourne, Sydney and Brisbane increasing by $2 each way, Dominion Post reports.

Air NZ domestic fares will increase by around two to three per cent and trans-Tasman fares will increase by at least $2 to up to $20 one-way depending on route and destination to cover the rising cost of fuel.

Air NZ spokesman Mark Street told Dominion Post trans-Tasman flights from Wellington to Melbourne, Sydney and Brisbane would mainly increase by $2 each way, which means the cheapest one-way fare to Sydney would be about $230.

"In the past five weeks alone the cost of fuel has increased by 6 per cent, adding about US$5 million (NZ$7m) a month to our overall costs," Mr. Street said, noting that the last fuel-related increase by Air NZ happened a year ago.

Outgoing Chief Executive Rob Fyfe said at the half-year profit announcement in February that the price of jet fuel has doubled in the past three years, but the airline was not hiking fares in consideration of a weak global economy.

Meanwhile, long distance international fares remained under review by Air NZ, even as other airlines like Singapore Airlines and Emirates have increased international fares this month.

Air New Zealand made a $38m profit for the six months to December, down $60m on a year earlier, Dominion Post reports.

The domestic fare increases will take effect on Friday sales and travel, while higher trans-Tasman fares will apply beginning March 23 sales for travel from June 25.