Fares to and from Dunedin and Christchurch start at only $39, while tickets to fly to and from Wellington will start at $49 and those to and from Auckland will be $79.
Prices between Queenstown and the three major centres will be the same, though starting fares between Invercargill and Wellington and Invercargill and Christchurch are slightly more expensive.
Air New Zealand’s new entry-level one-way Seat fares are as follows:
Air New Zealand chief executive Christopher Luxon said the move to shrink fares was the biggest overhaul of the airline’s domestic pricing structure in more than a decade.
It would mean more than three quarters of a million seats a year would be available for less than $50.
“We are making travel more affordable than ever for Kiwis so that they can explore more of their own backyard, connect with family and friends and attend the amazing events we have around the nation,” Mr Luxon says.
Air New Zealand was shrinking its lowest fares on 41 domestic routes.
Air New Zealand’s longest domestic service - the two-hour 1174km direct flight between Auckland and Invercargill - was launching in August and would have seats available from $79.
“We have shrunk our lowest fares by up to $45 in a move we believe will further supercharge domestic tourism and we’d love to see hotels, rental car companies and tourist experience operators follow our lead," Mr Luxon said.
“Regional New Zealand is one of the biggest winners out of today’s announcement. Some of the great new seat only fares include Auckland to Gisborne or Kerikeri for $39 and Auckland to Blenheim or Nelson for $49."
Fares on the airline’s main trunk routes were also shrinking.
The new fares are available for purchase from today at www.airnz.co.nz for travel from 25 March 2019.
