Air New Zealand domestic flight prices will rise by five percent from Thursday.

Photo: RNZ / Rebekah Parsons-King

The carrier said it was unable to absorb rising operational costs, such as the price of fuel and labour.

It regularly changed flight prices across routes and fare classes and the latest change would not have a material impact on its business operations, the airline said.

The move has already raised the ire of regional development minister Shane Jones, who said increasing fares was not an acceptable response.

"Air New Zealand enjoy a virtual monopoly position in New Zealand in terms of air connectivity, and the people who feel that Air New Zealand are doing a fantastic job obviously never fly to Whangarei."