Air fares to Europe have hit a record low, with a travel agency releasing return London flights from $1259 per person.

The flights released by House of Travel are with Malaysia Airlines and nearly $100 cheaper than those released by Air China earlier this week.

The Malaysia Air deal is valid for sales to September 30 or until sold out and valid for travel between April 1 and May 31 next year. The flights, which must be booked through the House of Travel online Mix & Match channel, are to Heathrow via Kuala Lumpur.

House of Travel marketing director Ken Freer said the cost of travelling to Europe on premium airlines such as Air New Zealand, Singapore Airlines and Emirates has been slashed by more than 15 per cent this year.


"This year we have seen a substantial decrease in price to travel to Europe on premium airlines, such as Singapore Airlines and Air New Zealand. Singapore Airlines has reduced their Europe flights by 15 per cent, while Air New Zealand is offering their one of their cheapest ever Europe flights via LAX," he said.

More competition from growing numbers of carriers and more routes is fuelling competition. Airlines are also benefiting from relatively low fuel prices.

"This year's competitive pricing from premium carriers is fantastic news for Kiwis, whatever your preferred travel style. When you couple these deals with favourable exchange rates, it is a great time to be a Kiwi traveller - travel just keeps getting cheaper."