Air New Zealand Refunds and Credits - The Definitive Guide
Our guide busts myths and misconceptions, and reveals everything you need to know to get a refund or use a credit effectively without frustration
Photo credit: Boeing/Air New Zealand
Updated 17 June 2020
Air New Zealand has been slammed since COVID-19 first hit as customers with travel plans have struggled to get refunds or even use credits as they expected to. MoneyHub has received queries about what steps to take, and in response, our team has published a comprehensive guide to which will help some New Zealanders obtain refunds for work and leisure trips.
Know this first: Why isn’t Air New Zealand just giving everyone refunds for cancelled flights?
As reported by Stuff.co.nz, Air New Zealand claims it doesn’t have enough money to refund everyone without having to cut more jobs and/or dip into its $900m government loan facility (thereby paying interest on the money it borrows). Air New Zealand argues that giving credits (for the value of the booking) rather than refunds is consistent with what other airlines are doing globally and that it’s under no legal obligation to provide refunds. It has been firm with this position, although there are some exceptions as we outline below.
Our guide to Air New Zealand refunds and credits
The purpose of this guide is to explain how you can get a refund in some circumstances and how credits work. We also bust several myths about credits to ensure you’re comfortable with the process and know how (and when) you can redeem for future travel. We cover:
Important:
1. Online redemption of credit (for tickets booked directly with Air New Zealand)
2. Travel agent redemption of credit (for Air New Zealand tickets booked using a travel agent)
Know this first: Why isn’t Air New Zealand just giving everyone refunds for cancelled flights?
As reported by Stuff.co.nz, Air New Zealand claims it doesn’t have enough money to refund everyone without having to cut more jobs and/or dip into its $900m government loan facility (thereby paying interest on the money it borrows). Air New Zealand argues that giving credits (for the value of the booking) rather than refunds is consistent with what other airlines are doing globally and that it’s under no legal obligation to provide refunds. It has been firm with this position, although there are some exceptions as we outline below.
Our guide to Air New Zealand refunds and credits
The purpose of this guide is to explain how you can get a refund in some circumstances and how credits work. We also bust several myths about credits to ensure you’re comfortable with the process and know how (and when) you can redeem for future travel. We cover:
Important:
1. Online redemption of credit (for tickets booked directly with Air New Zealand)
- In late July 2020, Air New Zealand expects to launch an online service for credit redemption.
- This means you'll be able to book flights and pay with your credit voucher number.
- Until this system launches, Air New Zealand is requesting passengers who want to book travel with credit to call 0800 737 000 and book over the phone.
2. Travel agent redemption of credit (for Air New Zealand tickets booked using a travel agent)
- If you have booked with a travel agent, we understand that travel agents will be allowing passengers to book new flights using the credit.
- This means your credit will be tied to your travel agent given they booked the original flights.
- We are aware that dealing with some online travel agents has proven difficult, but as far as we're aware, Air New Zealand will not issue a credit to a passenger directly if the tickets were booked using a travel agent.
Myth-busting Air New Zealand credits and refunds
There have been a lot of stories in the media. Citing Air New Zealand’s website and real examples, we myth-bust below to make the situation clearer and let you know what your rights are. Unless otherwise stated, these myths have been busted using updated Air New Zealand FAQ guidance published on their website.
Myth 1: “Air New Zealand is only giving credits, not cash refunds”.
True or not true? Not true. There are some ways to get cash refunds, as we discuss below.
Myth 2: “If I get a credit, I can only use it for new tickets in my name, not my friends or family”.
True or not true? Not true. Air New Zealand states on its website “the person whose email address was used to send the E-ticket is the owner of the credit and is responsible for making changes to the booking” AND “the owner of the credit can choose who the new tickets are purchased for”. This means if you arrange a credit, you can use it for anyone you like.
Myth 3: “If I get a credit, it can only be used to the same or a similar destination. For example, if I booked a flight to Australia, I can only use it for flights to Australia or the Pacific Islands”.
True or not true? Not true. Some travel agents are miscommunicating this. If you have been told something like this, it is not correct. Air New Zealand states “your credit can be used towards the purchase of any Air New Zealand fare available online including when another airline is involved. Any additional payment to the credit value must be made using a credit card”. This means that if your credit is from a trip to Sydney, you can use it anyway, for anyone – and if you need to pay more, you can pay the balance by card.
Myth 4: “If I get a credit, I must travel again by 30 June 2021”.
True or not true? Not true. Air New Zealand states on its website that “credits for flights booked to travel between 24 January and 30 June 2020 (domestic flights) or 31 August 2020 (international flights) will now have until 30 June 2021 to redeem this and book new flight/s.
Important: As Air New Zealand usually offers airfares 11 months in advance, a credit valid up to 30 June 2021 would mean you could make a booking for travel up until May 2022.
Myth 5: “If I get a credit, I can only use it on Air New Zealand”.
True or not true? Not true. Air New Zealand sells tickets to destinations it doesn’t fly to, such as Bangkok, London, Paris and Zurich. Air New Zealand states “our credit can be used towards the purchase of any Air New Zealand fare available online including when another airline is involved". This means that if some part of the journey you plan uses an Air New Zealand operated flight, your credit can be used to purchase the ticket.
Myth 6: “I need to use up the credit in one booking, and if credit is left over, it is lost”.
True or not true? Not true. Air New Zealand clearly states “You don't need to use the full value of your credit when you make a new booking - the remaining balance will be available for the length of the validity of your original credit”. This means that what is leftover can be used for further Air New Zealand flights.
Myth 7: “I booked a ticket with Airpoints Dollars as they were expiring, so now I don’t get any credit”.
True or not true? Not true. Air New Zealand tickets booked with Airpoints Dollars can be converted into a credit, in the same way had you paid with a credit or debit card. You can also choose to be refunded in Airpoints Dollars, although we don’t have clarity on whether their expiry date is being extended.
Myth 8: “I booked a number of tickets in 2020, and this means I will have many credits that I can’t combine”.
True or not true? Not true. Air New Zealand states that “if you have multiple credits, they can be combined to purchase a fare that is more than a single credit value. This can currently only be done via our credit call back form”.
Myth 1: “Air New Zealand is only giving credits, not cash refunds”.
True or not true? Not true. There are some ways to get cash refunds, as we discuss below.
Myth 2: “If I get a credit, I can only use it for new tickets in my name, not my friends or family”.
True or not true? Not true. Air New Zealand states on its website “the person whose email address was used to send the E-ticket is the owner of the credit and is responsible for making changes to the booking” AND “the owner of the credit can choose who the new tickets are purchased for”. This means if you arrange a credit, you can use it for anyone you like.
Myth 3: “If I get a credit, it can only be used to the same or a similar destination. For example, if I booked a flight to Australia, I can only use it for flights to Australia or the Pacific Islands”.
True or not true? Not true. Some travel agents are miscommunicating this. If you have been told something like this, it is not correct. Air New Zealand states “your credit can be used towards the purchase of any Air New Zealand fare available online including when another airline is involved. Any additional payment to the credit value must be made using a credit card”. This means that if your credit is from a trip to Sydney, you can use it anyway, for anyone – and if you need to pay more, you can pay the balance by card.
Myth 4: “If I get a credit, I must travel again by 30 June 2021”.
True or not true? Not true. Air New Zealand states on its website that “credits for flights booked to travel between 24 January and 30 June 2020 (domestic flights) or 31 August 2020 (international flights) will now have until 30 June 2021 to redeem this and book new flight/s.
Important: As Air New Zealand usually offers airfares 11 months in advance, a credit valid up to 30 June 2021 would mean you could make a booking for travel up until May 2022.
Myth 5: “If I get a credit, I can only use it on Air New Zealand”.
True or not true? Not true. Air New Zealand sells tickets to destinations it doesn’t fly to, such as Bangkok, London, Paris and Zurich. Air New Zealand states “our credit can be used towards the purchase of any Air New Zealand fare available online including when another airline is involved". This means that if some part of the journey you plan uses an Air New Zealand operated flight, your credit can be used to purchase the ticket.
Myth 6: “I need to use up the credit in one booking, and if credit is left over, it is lost”.
True or not true? Not true. Air New Zealand clearly states “You don't need to use the full value of your credit when you make a new booking - the remaining balance will be available for the length of the validity of your original credit”. This means that what is leftover can be used for further Air New Zealand flights.
Myth 7: “I booked a ticket with Airpoints Dollars as they were expiring, so now I don’t get any credit”.
True or not true? Not true. Air New Zealand tickets booked with Airpoints Dollars can be converted into a credit, in the same way had you paid with a credit or debit card. You can also choose to be refunded in Airpoints Dollars, although we don’t have clarity on whether their expiry date is being extended.
Myth 8: “I booked a number of tickets in 2020, and this means I will have many credits that I can’t combine”.
True or not true? Not true. Air New Zealand states that “if you have multiple credits, they can be combined to purchase a fare that is more than a single credit value. This can currently only be done via our credit call back form”.
Refunds – how to get one?
Refunds are being offered in specific circumstances. We detail these below. Importantly, these refund conditions apply to any fare type (Seat, Seat+Bag, Works or international saver fares etc).
Important: Air New Zealand reviewed the list below and commented "We are offering an additional level of flexibility for a number of customers, primarily on the basis of compassionate grounds, and these are and will be assessed on a case-by-case basis. Regarding refunds, we are offering refunds in accordance with the Conditions of Carriage and the terms and conditions of the fare at the time of purchase".
With this in mind, MoneyHub reminds readers that Air New Zealand FAQ guidance published on their website is the best place to see updates about.
With this in mind, MoneyHub reminds readers that Air New Zealand FAQ guidance published on their website is the best place to see updates about.
1. Hardship
Air New Zealand, on a case-by-case basis, will consider refunding tickets to passengers who advise their call centre team of hardship. This will include recent redundancy, reduced hours and/or similar events. This special circumstance consideration is not published on their website, but has been reported in the media and by MoneyHub users. Air New Zealand has no way to verify your personal "hardship", and the assessment is subjective, so we encourage ticket holders to plead their case.
2. Flights for people over 70 years old
Air New Zealand, on a case-by-case basis, will consider refunding tickets to passengers 70 or over who are unlikely to travel domestically or internationally in the next 12-24 months. This special circumstance consideration is not published on their website, but MoneyHub cited a trans-Tasman booking, scheduled in late April 2020, that was refunded after special consideration was made based on the age of the passengers. To be eligible, we believe you will need to convince Air New Zealand that the passengers will not want to travel (quoting fears of COVID-19 is suggested). We understand Air New Zealand is offering refunds to elderly passengers to be fair in these times, and strongly suggest anyone in the age group to argue the case that future travel is unlikely.
3. Flights to the USA and London
Any ticket to a USA destination or London is eligible for a refund. This special circumstance consideration is not published on their website, but MoneyHub cited an Auckland – Los Angeles – London booking, scheduled in June 2020, that was refunded after these special circumstances were considered. The money (fare and taxes) was received two weeks after the passenger called Air New Zealand to request the refund. We are publishing this exception to the "no refunds" rule until we hear otherwise.
Flying to Argentina? We believe that flights to South America may also fall under this refund condition given the discontinuation of the Auckland to Buenos Aires service. If you have ticket via Buenos Aires, you should ask for a refund citing the fact Air New Zealand has pulled out of Argentina. Air New Zealand has mentioned they will contact you in previous updates.
4. Domestic flights cancelled in March 2020
If you had a flight booked for March 2020 that were cancelled, Air New Zealand can refund the flight. This special circumstance consideration is not published on their website, but MoneyHub cited a domestic booking, scheduled in late March 2020, that was refunded after these special circumstances were considered. Air New Zealand may refute this, but it has to be consistent – if some tickets are refunded with similar special circumstances (as we’ve seen), then everyone's tickets must be refunded. We are publishing this exception to the "no refunds" rule until we hear otherwise.
5. Fully refundable airfares
Tickets that were originally booked as flexible/refundable can be refunded as per the standard terms and conditions. While this won't apply to most people, anyone who booked a 'flexidate' or similar fare can take advantage of its fully refundable terms and conditions.
Air New Zealand, on a case-by-case basis, will consider refunding tickets to passengers who advise their call centre team of hardship. This will include recent redundancy, reduced hours and/or similar events. This special circumstance consideration is not published on their website, but has been reported in the media and by MoneyHub users. Air New Zealand has no way to verify your personal "hardship", and the assessment is subjective, so we encourage ticket holders to plead their case.
2. Flights for people over 70 years old
Air New Zealand, on a case-by-case basis, will consider refunding tickets to passengers 70 or over who are unlikely to travel domestically or internationally in the next 12-24 months. This special circumstance consideration is not published on their website, but MoneyHub cited a trans-Tasman booking, scheduled in late April 2020, that was refunded after special consideration was made based on the age of the passengers. To be eligible, we believe you will need to convince Air New Zealand that the passengers will not want to travel (quoting fears of COVID-19 is suggested). We understand Air New Zealand is offering refunds to elderly passengers to be fair in these times, and strongly suggest anyone in the age group to argue the case that future travel is unlikely.
3. Flights to the USA and London
Any ticket to a USA destination or London is eligible for a refund. This special circumstance consideration is not published on their website, but MoneyHub cited an Auckland – Los Angeles – London booking, scheduled in June 2020, that was refunded after these special circumstances were considered. The money (fare and taxes) was received two weeks after the passenger called Air New Zealand to request the refund. We are publishing this exception to the "no refunds" rule until we hear otherwise.
Flying to Argentina? We believe that flights to South America may also fall under this refund condition given the discontinuation of the Auckland to Buenos Aires service. If you have ticket via Buenos Aires, you should ask for a refund citing the fact Air New Zealand has pulled out of Argentina. Air New Zealand has mentioned they will contact you in previous updates.
4. Domestic flights cancelled in March 2020
If you had a flight booked for March 2020 that were cancelled, Air New Zealand can refund the flight. This special circumstance consideration is not published on their website, but MoneyHub cited a domestic booking, scheduled in late March 2020, that was refunded after these special circumstances were considered. Air New Zealand may refute this, but it has to be consistent – if some tickets are refunded with similar special circumstances (as we’ve seen), then everyone's tickets must be refunded. We are publishing this exception to the "no refunds" rule until we hear otherwise.
5. Fully refundable airfares
Tickets that were originally booked as flexible/refundable can be refunded as per the standard terms and conditions. While this won't apply to most people, anyone who booked a 'flexidate' or similar fare can take advantage of its fully refundable terms and conditions.
How to arrange a refund?
If you fall into the categories above, call 0800 737 000, quote your booking reference number and confirm security details. Air New Zealand may push back on your claim - we know their approach is not consistent. However, we have published the above list in good faith based on evidence of refunds being received. If Air New Zealand is obliging, your refund will then be processed in 1 to 4 weeks.
Know this: Unless proven otherwise, we’re not aware of any other way to get a cash or Airpoints Dollar refund. This means if you booked a domestic or international flight in April, May or June, and you don’t fit into the four categories above, you will be given a credit which you can redeem by 30 June 2021.
Know this: Unless proven otherwise, we’re not aware of any other way to get a cash or Airpoints Dollar refund. This means if you booked a domestic or international flight in April, May or June, and you don’t fit into the four categories above, you will be given a credit which you can redeem by 30 June 2021.
How do I use a credit?
Air New Zealand is currently facilitating credit redemptions via its call centre. This means you’ll likely need to wait on the phone for some time to be connected. It was announced that in late July an online credit redemption tool will go live.
If I paid using Airpoints Dollars, do I get credit or Airpoints Dollars?
We believe the answer is either – the choice is yours. In the cases we cited, when tickets were paid by Airpoints Dollars, a refund of Airpoints Dollars was requested and approved. In one we cited, the applicant was initially told that a credit was the only option available to them before an Airpoints Dollar refund was granted.
Next Steps:
Other features not announced by Air New Zealand but observed by MoneyHub:
If I paid using Airpoints Dollars, do I get credit or Airpoints Dollars?
We believe the answer is either – the choice is yours. In the cases we cited, when tickets were paid by Airpoints Dollars, a refund of Airpoints Dollars was requested and approved. In one we cited, the applicant was initially told that a credit was the only option available to them before an Airpoints Dollar refund was granted.
Next Steps:
- If you fit into the tickets or age groups above, we suggest contacting Air New Zealand on 0800 737 000, quoting your booking reference number and requesting a refund.
- Alternatively, if you’re only eligible for a credit, we suggest waiting until Air New Zealand launches its online credit redemption system in late July. However, if you need to travel and want to use your credit before this goes live, call Air New Zealand on 0800 737 000, quote your booking reference and proposed the route and dates you want. It helps if you’ve priced the ticket(s) already on AirNZ.co.nz
Other features not announced by Air New Zealand but observed by MoneyHub:
- Koru vouchers (generated by credit card spend) have been extended six months. This means if you had vouchers expiring in May, they will now expire in November.
- Air New Zealand Silver, Gold and Gold Elite tiers are being extended 12 months. While this has been announced, MoneyHub can confirm that existing recognition upgrade voucher validity dates have been extended. This means you have longer to book a flight and request a one or two-class upgrade.
Finally, a message from MoneyHub’s chief of research, Christopher Walsh:
Reminder: Air New Zealand has advised that it considers such requests on a case by case basis, and there is no guarantee of refund success. Passengers who used travel agents to book must contact their travel agent to discuss refunds and credits.
- The credit/refund process has been far from smooth, and we continue to argue that refunds should be offered in all cases where Air New Zealand have cancelled the flights given the government's support for the airline.
- However, we can’t tell Air New Zealand how to run its business and give refunds in view of the precarious financial position this could put the airline in.
- We’ve published this guide to walk you through everything you need to know to maximise your chance of a refund and minimise the risk of forgoing a credit. While Air New Zealand won’t help a family sitting on a $4,000 credit for a cancelled trip to Australia or the Pacific, Air New Zealand is committed to making it easier to use the credit on new travel.
Reminder: Air New Zealand has advised that it considers such requests on a case by case basis, and there is no guarantee of refund success. Passengers who used travel agents to book must contact their travel agent to discuss refunds and credits.
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