Air New Zealand cancels $123 US flight bookings citing ‘human error’

A deal offering flights from the US to New Zealand for as little as $123 has turned out too good to be true, with the airline refunding tickets.

The airline admitted the one-way fares were too cheap, after they were offered through third-party websites and travel agents on Tuesday.

The "human error" meant the tickets were sold for 10 percent of their intended $1233 value.

Air New Zealand has refused to confirm how many fares were sold at the erroneous price.

However, it is believed most of the sales were in the northern hemisphere as the mistake occurred overnight on Tuesday in New Zealand.

Seattle-based folk musician Matthew Bean, who performs under the moniker "Sneaky Bones", expressed his disappointment with third-party travel booking website Expedia for failing to honour the sale price.

It is unclear whether Mr Bean booked the flights as part of a package deal that also includes accommodation.

An airline spokesperson told TVNZ that "a genuine human error in the date entry process" caused the glitch.

"In addition to full refunds, any legitimate out-of-pocket expenses that the customers may have incurred will also be reimbursed," the spokeswoman said.