Air New Zealand has slashed its fares to Honolulu, as Hawaiian Airlines announced it was offering three flights a week from Auckland to the Pacific island.
An average round trip economy ticket on Hawaiian Airlines will cost around $1800, which includes meals. Air New Zealand is currently offering return flights from $1000, without meals.
From June, Air New Zealand, which also flies to Honolulu three times a week, is increasing its capacity to the destination, offering bigger planes that will hold 60 more passengers, as well as offering premium economy and flat beds in business class.
Air New Zealand general manager of New Zealand and Pacific Cam Wallis says he's confident the national carrier can compete.
"In terms of the business to the US we have a significant amount of capacity through to primarily Los Angeles and San Francisco and we carry a growing amount of passengers up to Honolulu, so while we see it as a threat we think we're well positioned to compete really effectively against them."
Mr Wallis says Air New Zealand offers a flexible product with sharp fares to Honolulu.
Air New Zealand shares closed down 1% to $1.45 on Thursday.