Air New Zealand has increased fares and scaled back routes due to the continued high cost of fuel and changes in demand.

The price of domestic airfares will rise by an average 4 per cent, as will international airfares sold in New Zealand, Australia and the Pacific Islands.

Domestic and short-haul international price rises are effective from June 16, with long-haul rises expected from June 20. Among the changes, capacity on the Tasman route will be cut during lower demand months.

Between August and November, services from Hamilton to Sydney will be cut from three to two a week, and between September and November services from Dunedin to Sydney will be scaled back from three to two a week.

Services on both Tasman routes will return to three a week from late November. Services between Wellington and Sydney during August will be cut from a total of 44 to 36.