Airfares plunge: US-NZ flights as low as $328

American Airlines Boeing 787.

Increased airline competition on routes between Los Angeles and New Zealand has pushed fares down as low as NZ$328 return when booked in the United States.

Travel websites in the US say that although the fare on American Airlines has sold out, there were a a number sold at this super low level. Of the US225 price, taxes make up $US109.

From late June, American will fly between Los Angeles and Auckland using a Boeing 787-8 Dreamliner.

When American Airlines announced last November it was flying the route, Air New Zealand cut some Grabaseat airfares to Los Angeles from about $785 to $499.
Fares have typically ranged around $1500 to $1600 in the past, depending on time of travel.

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The best recently advertised fare from New Zealand was $699 through travel agents, helloworld.

United Airlines will also start flying from San Francisco to Auckland in July in partnership with Air New Zealand which is also putting downward pressure on prices.

Air New Zealand is also expanding capacity on its new Houston route to satisfy growing demand from Kiwis wanting to travel to the US but also renewed interest in this country by American visitors.

Auckland Airport Auckland Airport estimated that the new American Airlines daily service would boost seat capacity between New Zealand and the United States by 16 per cent , adding 165,000 seats per year and contributing $199 million annually to the New Zealand economy.

In the year to September 30 last year 2015, 237,312 Americans visited New Zealand, up 11 per cent on the previous 12 months, and 178,720 New Zealanders visited the United States, up 14 per cent.

The new United Airlines service is expected to deliver an additional 140,000 seats every year on the North American route, and contribute $190 million annually to the New Zealand economy.