Flights within and between the North and South Islands will be available for as little as $39.
Chief executive Christopher Luxon said the move to shrink fares was the biggest overhaul of the airline's domestic pricing structure in more than a decade.
Annually, it would make more than 750,000 seats available for less than $50.
"We are making travel more affordable than ever for Kiwis so that they can explore more of their own backyard, connect with family and friends and attend the amazing events we have around the nation," Mr Luxon said in a statement.
Air New Zealand's new entry-level one-way seat fares. Photo: Supplied / Air New Zealand
The new fares are available for purchase from today for travel from 25 March 2019 onwards.
- RNZ
This story has been reproduced in special arrangement with Rado NZ