The Civil Aviation Authority (CAA) is consulting on a proposal to reduce domestic and international passenger security levies by 5%, after improvements in aviation security operations, financial management and security reserves.
If progressed, the domestic passenger security levy would reduce from $10.91 to $10.36 per passenger and the international levy from $22.30 to $21.19, excluding GST. The levies are paid by airlines and any decision about how a reduction is reflected in airfares sits with individual airlines.
On current projected passenger volumes, CAA estimates the proposed reduction would reduce levy collections by a cumulative $70.935 million by FY32.
Director of Civil Aviation and Chief Executive Kane Patena said the proposal showed CAA was focused on delivering effective safety and security services in the most cost-effective way.
“Aviation is facing real cost pressure. We cannot control every cost in the system, but where CAA can sustainably charge less while continuing to deliver strong security services, we will.
“We have invested in new technology which has allowed us to create efficiencies in staffing of lanes, improve the passenger experience, and uplift security standards. We have also strengthened our financial position, rebuilt appropriate reserves; and updated passenger forecasts also give us greater confidence in future revenue. That gives us confidence to test a 5% reduction in passenger security levies now.”
CAA Board Chair Mark Darrow said the Board expected CAA to keep testing whether it was delivering value to the aviation sector.
“This is what the combination of disciplined stewardship and careful investment should look like: invest where we need to, improve the way we operate, and return value where the evidence shows we can do so sustainably.
“Returns like this give us confidence that careful, targeted investment can result in safety and security outcomes, while delivering efficiency gains. We will maintain this focus as we look to deliver Business Transformation.”
CAA says the proposed reduction would not impact its ability to meet performance targets for aviation security services. In the most recently completed year, 97% of passengers were screened in less than 10 minutes.
The consultation is focused only on domestic and international passenger security levies. Other CAA safety and security fees, charges and levies will be considered separately through the First Principles Funding Review, with broader public consultation expected in mid-2027.
Targeted consultation with relevant parties, Air New Zealand, Jetstar, BARNZ and the Airports Association opens on 30 September and closes at 12:00pm on 14 October 2026.
Information is available on the CAA website for general public awareness: Consultation on proposed passenger security levy reduction
CAA Media Team 0508 763 222 | media@caa.govt.nz
