Air fare wars: Jetstar unveils 75,000 domestic fares for $25

Jetstar has accepted Air New Zealand's pricing challenge. Photo / File

Jetstar has struck back at Air New Zealand's pricing shake-up by slashing its own fares - offering 75,000 domestic flights for just $25.

The airline is offering a range of cheap fares from March 1-8 to destinations around the country.

This promotion comes in the same week that Air New Zealand announced its biggest pricing shake-up in a decade.

Earlier this week, the national carrier confirmed that it would offer 750,000 seats a year for less than $50 each.

Jetstar's response today set the stage for an all-out price war between the two airlines - with customers the big winners.

"We've been the low fares leader for domestic fares in New Zealand for nearly a decade," Jetstar chief customer officer Catriona Larritt said.

"Last year we sold nearly 600,000 domestic fares for under $50."

Flights included in the latest Jetstar promotion include $25 fares between Christchurch and Wellington, Auckland and Christchurch, and Wellington and Nelson.

"Whether it's visiting family and friends or exploring somewhere new in New Zealand, this is a chance for Kiwis to grab a really small fare in a really big sale," Larritt said.

This move also comes off the back of Jetstar reiterating its pledge to beat any fares by a competing airline on a similar flight by 10 per cent - meaning that astute deal hunters could get an even better deal than the prices promoted by the likes of Air New Zealand or third-party flight search sites.

In addition to the shake-up of regional flight pricing, Kiwi travellers also got some good news on the international front this week, with the announcement that Air Canada would be operating a seasonal direct route between Auckland and Canada.

The flights on Air Canada will operate out of Auckland on Monday, Wednesday, Thursday and Saturday.

A special introductory deal sees the fares selling as low as CDN$1387 (NZ$1541) for a round-trip.