Air New Zealand says it intends to buy back 3% of its shares because it believes the current price is under-valued.
The airline says the buyback may start next month and run between 4 October and 27 September next year.
It says the 3% equates to 33,006,112 shares.
The Crown has 73% of the airline's shares and will not particpate as a seller.
Meanwhile, the departing chief executive of Air New Zealand gave his final speech to shareholders at its annual general meeting on Friday.
Rob Fyfe leaves the airline at the end of the year after seven years in the top role.
"I feel proud of what's been achieved," he says.
"It's been a special privilege to lead such an iconic company and it's certainly the highlight of my career to date."