Jetstar will quit flying to regional centres, dealing a blow to those who have benefited from lower air fares as a result of competition.

The airline is talking with 70 staff about the move to come into affect from December 1.

Jetstar has been flying to Napier, Nelson, New Plymouth and Palmerston North for the past four years. The presence of the budget offshoot of Qantas has been critical in dragging down the cost of notoriously high fares on regional routes.

The airline has struggled to make money on the services from the outset and is blaming the increasing cost of running ''thin'' routes and a softening domestic market. Competitior Air New Zealand - which will benefit from Jetstar's withdrawal - has also reported a slowdown in domestic traffic.

Jetstar flew up to 130 fligthts a week on the regional network using Q300 aircraft from Auckland to the four centres and between Wellington and Nelson.

The airline says it will continue to fly its main trunk jet routes.

Gareth Evans, Jetstar's chief executive said the New Zealand regional market is facing some headwinds, with softer demand and higher fuel costs
and the airline didn't see the outlook changing any time soon.

''As a result, we're announcing a proposal today to end our regional services, with the final flights on 30 November this year," said Evans.

"We have given it a real go. However, despite four years of hard work, including becoming the most ontime of the two major regional airlines and having high customer satisfaction, our regional network continues to be loss-making.''

"We understand there will be disappointment in regional centres at today's announcement.

Jetstar had brought low fares and competition to the regions and had carried more than 1.3 million passengers since these services began in 2015.

"We're immensely proud of what our regional team has achieved to help Kiwis see more of their country for less. Last year 25 percent of our regional customers paid less than $50 for their flight and 75 percent paid under $100.

Regional customers have been very loyal.

''We'd like to thank them, and all our regional stakeholders including airports, local councils, businesses and tourism organisations, for their support.

Jetstar will continue to offer up to 270 domestic jet services a week on its jet services between Auckland,Wellington, Christchurch, Dunedin and Queenstown and up to 100 international flights a week on the Tasman and to Rarotonga.

"From the end of October, we're doubling our Queenstown to Wellington services to six per week and we'll continue to look at opportunities for our domestic trunk routes and international flying," said Evans.

The airline will today begin a consultation process with about 70 affected employees on the proposal and expected to announce a final decision before the end of October.

Alternative employment options would be available for all affected Jetstar regional employees – made up chiefly of pilots and cabin crew – across Jetstar and Qantas Group businesses in New Zealand and Australia.