Jetstar boosting services to Dunedin Airport is a case of "wait and see". However, "opportunities are there", the airline's Australia and New Zealand chief executive David Hall says.
The low-fare Qantas subsidiary launched its once-a-day Auckland to Dunedin service in July 2011, breaking Air New Zealand's monopoly on the route.
Jetstar now had a 20% share of New Zealand's domestic routes and would look to add extra capacity, provided it had a competitive position and market demand.
Mr Hall said during his visit to Queenstown this week the "fundamentals are there [in Dunedin] for potential additional development".
The city was "responding well to low-fare stimulation".
Mr Hall said Dunedin had proven to be "very successful for us" and was a good network opportunity" for the airline.
"It's a good market for us, true to our leisure target market, mums and dads [and] universities."
