Airline passengers could receive automatic refunds for cancelled flights under a Labour Party election policy aimed at strengthening consumer protections and increasing competition across New Zealand’s aviation industry.

Labour leader Chris Hipkins said flying had become increasingly expensive, particularly for people travelling between regional centres.

“For many New Zealanders flying is how we get home for a birthday, get to a hospital appointment in another city, or keep a business running,” Hipkins said.

“But flying is expensive, and on many regional routes there is little or no competition. Kiwis are struggling with the cost of living and are finding it harder and harder to make those important trips.”

Under Labour’s proposal, airlines would be required to display the full cost of flights upfront, including additional charges, allowing passengers to compare prices more easily.

Large airlines would also face new requirements to compensate or reimburse customers for significantly delayed checked baggage or paid services that were not delivered.

Labour commerce and consumer affairs spokesperson Arena Williams said passengers should not have to chase airlines for refunds.

“When an airline screws up, passengers shouldn’t have to fight to get their money back. If your flight is cancelled or significantly changed, you’ll get an automatic refund.”

The policy would introduce greater scrutiny of airline fares, operating costs and profits, alongside mandatory public reporting of delays, cancellations and baggage handling performance.

Labour also wants to remove barriers preventing smaller airlines from accessing essential airport infrastructure.

“Smaller airlines shouldn’t have to compete with one hand tied behind their backs. Labour will give them fair access to the airport facilities they need to grow and connect regional New Zealand,” Williams said.

The party would also seek to ensure airports could access affordable borrowing and capital to fund infrastructure improvements without unnecessarily increasing airfares.

Where essential regional air services were threatened, Labour would bring aviation industry representatives together to develop solutions to maintain connections.

Williams criticised National’s approach to supporting regional aviation.

“National’s answer has been to hand smaller airlines a bit of extra cash to help them get by, while leaving the barriers to competition in place. That won’t help smaller airlines grow or give passengers more choice.”

Labour has not specified when the proposed changes would take effect or provided detailed implementation costs.