Air New Zealand flight Covid credit expiry date extended again

In September, Qantas removed expiry dates from credits issued because of the impacts of the pandemic, offering customers a cash refund or, if they booked Jetstar, vouchers without an expiration date.

Today, Air New Zealand announced it would keep its expiry date but extend it another two years, to January 31, 2026.

Previously, customers who had “Covid credits” with the airline had to use them in a booking before January 31, 2024.

This date has been extended, for a sixth time, something the airline said gave some customers “up to six years” to use their credits, which were first issued in 2020. Travel booked on the credits must take place before the end of 2024.

Air New Zealand decided to extend the date because of the volume of unused credits and customer feedback, the airline’s chief financial officer, Richard Thomson, said.

“So far close to 85 per cent of our customers who had a Covid credit have used them to book flights, but there is still over $200 million remaining,” he said.

“Given that amount, we believe this extension is the right thing to do to give customers more time.”

Thomson said it had been hard to contact certain customers, to remind them or inform them of their credit.

“We’ve found some are easier to reach than others. Customers may have changed their contact details or booked through third parties, which adds a layer of complexity.”

Why do airlines care about customers using credits?

Around the world, airlines have been criticised over short credit expiration dates or unfair credit policies.

In September, the Australian Competition and Consumer Commission (ACCC) announced it was taking Qantas to court for allegedly advertising and selling tickets for thousands of flights it had cancelled during a three-month period in 2022 but not removed for sale.

Hours later, Qantas said it would remove the expiry date on millions of dollars worth of credits and offer certain customers cash refunds.

Air New Zealand has also faced pressure and criticism over its credit scheme, particularly from consumer watchdog Consumer NZ.

As far back as 2020, the organisation challenged the airline and said it should offer consumers the option for a refund. This September, in response to Qantas’ announcement, CEO Jon Duffy said Air New Zealand had no reason to not offer something similar.

Duffy told ZB radio it was “fundamentally” important the airline was profitable but now they were, “questions do need to be asked” about the large number of unused credits. Duffy said continuing to extend the expiry date also was likely less a relief than unsettling for customers.

What are Air New Zealand Covid credits?

Covid credits were issued to customers who had non-refundable fares for flights that couldn’t fly because of the pandemic. Customers had to contact Air New Zealand about a refund in order to get the credit, which must be used with an Air New Zealand fare.

The credit can cover a number of things; part or all of a fare, excess baggage, seat selection, upgrades or flights for other people.

If a flight couldn’t proceed because of the pandemic, and the customer purchased a refundable fare, or the airline was required by law to refund passengers, they received a refund instead of a credit.

The airline also asked customers with credit, who may be facing financial hardship and thus are unable to book a new flight, to get in touch about a compassionate refund.