The New Zealand government has earmarked NZD5.7 million New Zealand dollars (USD3.2 million) from the regional infrastructure fund (RIF) for working capital grants to regional airlines, according to a government statement dated October 5, 2026.
Individual grants will range from NZD300,000 (USD168,000) to NZD1.2 million (USD672,000), with allocations based on each airline's annual passenger volumes and flight movements. However, the statement did not identify the recipients or individual allocations.
"These grants for day-to-day costs such as fuel and wages are being provided with an expectation the airlines will maintain their current service levels," associate transport minister, James Meager, said, adding that the support would provide financial relief over the next 12 months.
On the other hand, regional development minister, Shane Jones, said jet fuel and aviation gasoline prices had risen by more than 50% since March. He described the support as temporary and said it would help preserve essential regional routes that might otherwise be vulnerable.
The grants will come from the remainder of the RIF-funded regional air connectivity package established in 2025. The government has so far used the programme to provide concessionary loans for aircraft acquisition or leasing, maintenance, and debt refinancing.
ch-aviation previously reported that Air Chathams, Sounds Air, Island Aviation (New Zealand), and Golden Bay Air had received loans by April 2026. South East Air, which owns the aircraft operated by Stewart Island Flights, and Sunair Aviation subsequently secured funding, bringing the total value of the six announced loans to NZD25.8 million (USD14.5 million).
