Jetstar has responded to Air New Zealand's domestic airfare price drop by releasing tens of thousands of seats for just $25 each.
Earlier this week, Air NZ announced it would be dropping its base fares across its entire domestic and regional network, with some as low as $39.
In response, Jetstar released 75,000 seats at a cost of $25 from midday, Friday.
Routes being offered at this price include Auckland to Nelson, Napier, New Plymouth and Palmerston North, and flights between Auckland, Wellington and Christchurch.
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Catriona Larritt, Jetstar's chief customer officer, says the airline is continuing its record for being "the most affordable in New Zealand".
"We've been the low fares leader for domestic fares in New Zealand for nearly a decade, helping people fly more often, for less," she says.
"Despite having a significantly smaller domestic fleet, less than a fifth of the size of our competitor, last year we sold nearly 600,000 domestic fares for under $50 and more than 1.75 million domestic fares for under $100."
Although the new Jetstar fares are cheaper, there are less of them. The promotion is limited to 75,000 seats which will be sold over the next week only, whereas Air NZ's new base fares will apply to more than 750,000.