Air New Zealand has responded to the debut of Jetstar domestic New Zealand services, saying it will 'compete vigorously with everyday low fares and a high level of service.'

'Frequency is a critical factor for domestic travellers,' a statement said, emphasising Air New Zealand’s more than 400 return services a week between Auckland, Wellington, Christchurch and Queenstown.

The carrier also cited recent investments including its fast and simple check-in experience, new lounges, and complimentary onboard food and beverages.

Air New Zealand has reported its January traffic figures, which were down 8% to 923,000 for the month.

Long-haul numbers slipped 11%, while short-haul passenger numbers were down 7.2%.