"Nelson is a fantastic place, with its golden beaches, art and culture," Mr Clarke said.
"We expect the new flights to stimulate tourism in the capital and the top of the South [Island]."
Jetstar recently launched Gold Coast and Melbourne routes out of Wellington which added 130,000 seats to Wellington's international market.
The Palmerston North service will have four return flights a day.
Palmerston North Airport chief executive David Lanham said the service would be great for domestic and international travellers.
"The new capacity and Jetstar's pricing model will stimulate more travel, making Palmerston North and our regional catchment area more accessible for business and leisure," he said.
The airport is upgrading facilities in preparation for the forecasted increase in passenger numbers. The changes include the relocation of the arrivals door, the construction of an extended wind-lobby and additional carparks.
The airport expected to see at least a 20 per cent increase in passenger movements by June 2017.