Air New Zealand will cut services and raise fares to cope with the rising cost of jet fuel after delivering recent profit downgrades on the back of the increasing fuel prices.

Domestic and international fares are going up an average of $4, while short-haul and trans-Tasman fares will be raised on 16th June.

Long-haul fares will increase from June 20.

The carrier, like Qantas, is also reducing the frequency of flights to Japan and Hong Kong, and reviewing services between New Zealand and Australia.