Air New Zealand set to slash domestic airfares by up to 50 percent

Air New Zealand is set announce new airfares across its domestic routes later this week, Newshub understands.

Newshub understands the airline is preparing to reveal dramatic price cuts of up to 50 percent off its entry level fares on more than 40 routes in the next 48 hours.

Newshub understands the airline has been working on a strategy to stimulate activity on its domestic market - especially the regional routes.

The move comes less than a month after Air New Zealand announced a profit downgrade.

Any major changes to the fare structure would be the biggest for the airline in 15 years.

Travel agents are being briefed on the new fares today, with an announcement from the airline expected before Wednesday.

The price drop is part of a wider company review which includes its destinations and fleet.