Jetstar figures show it is nibbling into Air New Zealand's dominance of domestic routes, increasing its market share from just under 20 per cent to 22 per cent during the past year.
The Qantas subsidiary says it would like to increase its share of the market to 30 per cent "depending on economic conditions" but is coy on whether it is profitable in this country.
The airline put a ninth Airbus A320 into New Zealand late last year and this had helped win more of the market, said David Hall, Jetstar's chief executive of Australia and New Zealand. According to operational data released last week, load factors increased by more than 4 per cent to 80.8 per cent during the last six months of 2012 compared to the corresponding period.
"Growth is being absorbed by the market which is tremendous and we're on track for carrying two million Kiwis [in 12 months], he said.
"It reaffirms the fact our strategy is working - rather than cannibalise our competitor it really is about stimulating growth."