NZ travellers may find themselves out of pocket if ash from the Icelandic volcano causes authorities to close airspace again.

Direct flights from Auckland to Houston as often as five times a week are being planned from November 2011.

Air New Zealand is increasing its international capacity by 4.9 per cent and domestic capacity by 3.8 per cent as it starts to see a recovery in air travel.

Claims from travelers disrupted by the Iceland volcano have topped half a million dollars, one of NZ's leading travel insurance companies says.

Plastic cutlery on some Air New Zealand flights is re-used up to 10 times before being thrown away.

Air NZ has taken an unusual approach as it defends itself from claims an alliance with Virgin will mean an inevitable downgrade of its services.

A proposed Tasman alliance between rivals Air New Zealand and Virgin Blue has both companies promising lower fares.

Air NZ is bearing the brunt of financial losses caused by the the Iceland volcano disruption, an expert says.

The eruption is unlikely to have inflicted significant financial pain on Air NZ, analysts say.

For most of us, airline food conjures up far-from-appetising images of soggy omelettes, insipid veges and reheated meat.