Lower fares for US travellers lifts Air NZ bookings

The number of passengers from the United States booking with Air New Zealand has lifted in recent weeks, as the airline offers lower price fares amid global economic gloom.

Group general manager international airline Ed Sims said aggressive pricing and innovative marketing in the US had seen bookings rise week-on-week.

Indications were that the short term demand fall had been stemmed.

"Cumulatively we remain a long way below last year's bookings. Nonetheless we are now more confident that we will not have to reduce capacity further than the 9 per cent already in place for the next four months," Mr Sims said.

Collectively the industry had to invest further in this country's presence offshore.

Among special return fares being promoted by Air New Zealand from Los Angeles and San Francisco are economy for as low as US$738 ($1522) (an 18 per cent saving), premium economy US$2359 (30 per cent saving) and business premier US$5400 (46 per cent saving).

The airline said it had also started a pricing and marketing campaign in Britain, with special return London-Auckland fares for A3;571 ($1626).

- NZPA