It'll cost you five per cent more to fly around the country with Air New Zealand from today

It'll cost more to fly around the country in Air New Zealand planes from today.

The national carrier announced a five per cent increase in domestic airfares two days ago, citing operational cost pressures, including labour, fuel, goods and services. It said it's unable to keep absorbing these costs.

The move comes despite the airline saying in February it was on track for its second highest profit ever this year. 

The company said its earnings before tax for the first six months of the 2018 financial year was $323 million, compared to $349 million in the prior period. Net profit after tax was $232 million.

International fares are also understood to be under review with jet fuel prices having increased by 54 per cent in the last year. 

ANZ Boeing 747 400 at Auckland Airport New Zealand. (Photo by: Education Images/UIG via Getty Images)
Air New Zealand plane tail (file picture). Source: Getty