Air New Zealand is cutting domestic fares to fill seats as new aircraft increase capacity on the domestic network.
The airline is adding 320,000 additional seats a year to the New Zealand domestic network, says Bruce Parton, Air New Zealand's group general manager Australasia.
To help fill the seats the airline is offering cheaper leadin fares.
A one-way seat-only fare between Auckland and Wellington purchased online drops to $49 from $69, while Christchurch to Wellington drops to $49 from $59. Auckland to Queenstown fares drop by 20 per cent, Auckland to Dunedin fares fall by 15 per cent and Auckland to Christchurch fares fall by 14 per cent.
The new fares are on sale immediately and apply to travel after September 1.
Pricing on regional services served by new ATR72-600 turbo prop aircraft is also under review.
As well as new ATR aircraft, Air New Zealand has more 171-seat A320 aircraft due to arrive into the domestic jet fleet to replace its 133-seat Boeing 737s.
"We want to stimulate demand to get more Kiwis flying and with more than $US1 billion ($NZ1.25 billion) of domestic aircraft on order we are ready to support a rebound in the economy," Mr Parton said.