Increased fees, taxes and regulatory costs imposed on Australian and New Zealand airlines have resulted in higher airfares and reduced services despite repeated warnings from industry bodies. While Jetstar on Thursday announced Christchurch-Sydney flights would return from late October, the airline is scrapping flights between Auckland and the Sunshine Coast, and Christchurch and Cairns. The budget airline cited lower-than-expected demand on both routes and a “significant rise in operating costs, including fuel”.Airlines for Australia and New Zealand chair Graeme Samuel AC said his organisation had warned governments for some time that escalating taxes, fees, charges and regulatory costs imposed on airlines would inevitably result in higher airfares, reduced services or both.“The impact is felt most acutely on thin and marginal routes, many of which connect regional communities and are often served by low-cost and value carriers operating on tight margins,” he said.“When governments increase the cost of flying, these are typically the first services to come under pressure.“Airlines are already grappling with a significant increase in fuel costs driven by conflict in the Middle East. At the same time, governments continue to layer on additional taxes, charges and regulatory obligations.”Professor Samuel added the federal budget increased the passenger movement charge from $70 to $80 per traveller, while AusCheck credentialling fees for aviation workers have risen from $92 to $262 per employee.“Meanwhile, Airservices Australia is proposing double-digit increases in air traffic control charges,” he said. “Additional aviation security cost increases are expected, and airport passenger charges continue to rise at around twice the rate of inflation.“The industry also faces substantial new compliance costs associated with accessibility reforms and forthcoming sustainability-related policy measures.”The increases represented a “growing cost burden” that flows on to customers, Professor Samuel added.“If policymakers continue to treat aviation as a source of revenue rather than an essential economic enabler, Australians and New Zealanders can expect fewer route options, less competition and higher airfares,” he said. “Affordable air travel should not become a luxury. It is vital to regional connectivity, economic growth and social inclusion. “Governments must carefully consider the cumulative impact of their decisions before more services are lost and more travellers are priced out of the market.”