Air New Zealand slashes airfares on domestic routes by up to 50 per cent!

Air New Zealand's slashing of regional air fares will see 750,000 seats a year available for less than $50.

The national carrier has revealed cheaper fares on 41 domestic routes in what is the biggest shake up of prices in more than a decade.

Fares between Tauranga and Auckland will start at $39, and flights from Tauranga to Wellington at $49.

The new fares can be purchased from today and will apply for travel from March 25.

Air New Zealand chief executive Christopher Luxon said the airline was "shrinking its lowest fares on 41 domestic routes meaning Kiwis will be able to fly within each island for as low as $39 and between the North Island and South Island for as low as $39".

"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," Luxon said.

"Fares on the airline's main trunk routes are also shrinking – Auckland-Christchurch and Auckland-Wellington now start at $49 one-way and Christchurch-Wellington from $39."

Slashing their domestic fares will bring their prices in line with what Jetstar offers on some local routes.

Yesterday the Herald reported Air New Zealand was working on a strategy to try and stimulate its domestic market, especially the regional routes, since it announced a profit downgrade last month.

Slashing their domestic fares will bring their prices in line with what Jetstar offers on some local routes.

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Air NZ last month slashed its full-year earnings forecast.

It cut pre-tax earnings guidance to a range of $340-$400 million for the June year due to slower-than-expected revenue growth. The company's share price has slumped since the move and the stock is currently trading at $2.65.

The cut sent shockwaves throughout the tourism industry that its golden run was coming to an end.

This article was first published by nzherald.co.nz and is republished here with permission.