Bad news for air travellers as current air fares are set to be the new normal. 

Air New Zealand has announced earnings before tax of $185-million for the first half of the current financial year. 

CEO Greg Foran told Mike Hosking that some costs, such as for parts, food and beverage, wages, and air navigation are with them to stay. 

He says they have to work out how to become more efficient. 

But Foran says some of those costs are baked in and he doesn't expect prices are going to come plummeting down. 

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• Air New Zealand CEO blames inflation, stabilised demand for reduced half-year earnings