Air NZ cutting capacity to London

The soaring price of jet fuel is forcing Air New Zealand to cut its capacity on Auckland to London flights.

From September it plans to replace the huge 747-400 planes with the new Boeing triple sevens.

The new aircraft carry 313 passengers, as opposed to 379 on the larger planes - a 6% cut which will save Air New Zealand around $100 million a year in fuel alone.

Business commentator Ian Witters says airline share prices all around the world have fallen, and all airlines are reviewing their operations.

Earlier this month Air New Zealand Chief executive Rob Fyfe said the company was looking at whether it would have to make cuts to its long-haul routes.

He said the global airline industry is heading for a downturn that could be worse than the slump that followed the September 11, 2001 attacks.