Air Rarotonga has quietly added a fuel surcharge that has been in effect for six weeks as the airline and the Cook Islands tourism sector adjust to sharply higher operating costs, Managing Director Sir Ewan Smith has confirmed. The surcharge follows a near doubling in fuel prices linked to the Middle East crisis; Smith said fuel supply remains secure but the cost squeeze is already forcing behaviour change, particularly among local residents who have no corresponding rise in income and are cutting back on travel.
Smith told reporters the visitor market has so far been resilient, with forward bookings largely intact except for a dip in demand in the three-to-four-month window as some tourists weigh uncertainty. The Cook Islands welcomed roughly 185,000 visitors last year, he noted, but the national tourism corporation has shifted emphasis away from volume growth towards a Destination Stewardship Plan focused on environmental and social sustainability, lifting visitor yield and improving experience quality.
Operationally, Air Rarotonga has taken immediate steps to protect schedules. The carrier has just purchased a third Saab 340 to keep services running on core routes, including Aitutaki and Tahiti. Smith said the Saab acquisition was pragmatic: it ensures continuity while the airline plans a longer-term fleet strategy. Over the next five years Air Rarotonga expects to transition to ATR turboprops to align more closely with regional partner Air Tahiti and simplify maintenance and parts support.
Infrastructure developments in the Northern Group are also reshaping the airline’s network plans. The Cook Islands government is working to pave the runway on Manihiki — some 1,300–1,400 kilometres from Rarotonga — which would permit Saab or ATR operations to the normally isolated atoll. Smith said the upgrade should reduce operating costs for remote services and open opportunities for bespoke tourism products in Manihiki once heavier, more capable turboprops can land there.
The airline’s immediate challenges are stark: Smith reported maintenance costs have effectively doubled and fuel is far more expensive than a year ago. That combination is squeezing margins and constraining what fares locals can realistically afford. To respond, Air Rarotonga plans to move away from selling standalone airfares and towards integrated tour packages that bundle flights with local experiences — a product strategy intended to boost yield and make travel economically viable for both the carrier and the host communities.
Looking beyond fleet and product changes, Smith signalled an internal shift in ownership structure over time, with staff to take “a meaningful stake” in the business. For now, the surcharge and the Saab purchase represent immediate responses to volatile global fuel markets and rising costs; the runway upgrades and the tourism stewardship agenda mark a broader recalibration of how the Cook Islands balance visitor access, community welfare and environmental sustainability.