Flying from Auckland to Wellington could cost under $50 from September, with Air New Zealand slashing fares on major domestic routes in a bid to fill an extra 320,000 seats per year capacity.
The cuts, the second in nine months, will see prices fall by between 14 per cent and 29 per cent on major inter-city routes.
Business travellers using Flexi Plus fares are being offered even deeper discounts, with a flight from Auckland to Dunedin set to cost $239 as of September, about a third cheaper than it is now.
"We want to stimulate demand to get more Kiwis flying and with more than US$1 billion of domestic aircraft on order we are ready to support a rebound in the economy," said Air New Zealand group general manager Australasia Bruce Parton.
The airline said pricing on regional routes is also scheduled to be reviewed when new ATR turbo prop aircraft become operation in the next few months.
As well as new ATR aircraft, the airline has a number of A320 aircraft arriving shortly which will replace its Boeing 737s, which offer 44 seats than the current 133 seat per plane capacity.
- © Fairfax NZ News