Airfare war: Jetstar launches cut-price domestic flights

Jetstar has announced new deals on a range of domestic flights.

Jetstar has thrown the gauntlet down, launching a range of cheap airfares at a time when rival Air New Zealand has been accused of price gouging.

The Australian-owned airline is offering flights starting at $25 for domestic one-way travel from Wellington to Christchurch, but only between specific dates. Flights from Auckland to Christchurch start at $29.

Air NZ flights for the same period came in today at almost four times Jetstar’s sale prices, with flights from Auckland to Christchurch priced at $114, and flights from Wellington to Christchurch came in at $69 for the corresponding period.

Jetstar’s sale includes flights from Auckland to Queenstown at $45, while Air NZ prices came in at $180 for the same one-way flights.

Jetstar was also selling flights from Auckland to Wellington at $29.

A Jetstar spokeswoman said while “these aren’t quite the lowest fares since Covid”, the company is “committed to offering incredible low fares all year round.”

The Herald reported in February that Air NZ’s domestic fares were up 15 to 20 per cent last year since the pandemic.

Leading up to Christmas, some domestic Air NZ flights for return travel surpassed $1000 - up to twice that of the competition.

Refundable tickets for certain flights from Auckland to Dunedin this week were up to $510 one-way, compared to similar flights on Jetstar that were hundreds of dollars cheaper.

The price dropped dramatically if booking ahead to February or March, with Air NZ flights down to $181.

At the time of publication, Jetstar had some pre-Christmas one-way tickets from Auckland to Dunedin for $199. The cheapest Air NZ seat-only flight was $272.

Air New Zealand declined to comment on their rival’s sale.

Analysts at Forsyth Barr said with reduced capacity and high demand, airlines were the big winners in the recovery from the pandemic.

Air New Zealand is 52 per cent owned by the Government on behalf of taxpayers, who provided more than $2 billion of direct and indirect support during the pandemic.

As with other airlines, many passengers have not only been paying high prices but also receiving poor service compared to what they expected before the pandemic, as staff and aircraft shortages and infrastructure issues make for a bumpy recovery in aviation.

Board of Airline Representatives of New Zealand (BARNZ) executive director Cath O’Brien said the Jetstar fares are positive for travellers.

“We continue to see strong demand for domestic travel in New Zealand. It’s great to see sale fares like this, which offer great value for families and friends to connect across the motu.”

Jetstar said the sale will run for five days, beginning today.