In a move reflecting the ongoing challenges of the Covid-19 pandemic, Air New Zealand has recently announced another extension to the expiry date of credits issued due to pandemic-related disruptions.
Originally set to expire on January 31 2024, customers now have until January 31 2026 to book their travel, with all travel to be completed by 31 December 2026.
This decision means that some customers, especially those who received credits as early as 2020, will have been provided with up to six years to use their credits.
Air New Zealand’s chief financial officer, Richard Thomson says that this extension was driven by the volume of outstanding Covid credits and the feedback from customers seeking more time to plan their travels.
“We’ve made concerted efforts to reach out to our customers. From emails to phone calls for those with high-value credits, and even liaising with travel agents and advertising in national media.” says Thomson
Despite these efforts, Richard says that while nearly 85% of customers with a Covid credit have rebooked flights, there remains an outstanding amount of over $200 million in credits. “Given the magnitude of this amount, extending the expiry date is the right step forward.” he says
The credits were primarily issued to customers who had purchased non-refundable fares for flights that were later cancelled due to the pandemic. Those who had refundable fares and reached out for a refund have already been processed.
This extension marks the sixth time Air New Zealand has made such a decision, a nod to the challenges posed by the pandemic and the intricacies of reaching out to a global customer base. However, it’s crucial to note that this extension is only applicable to Covid-related credits issued before October 2022.
In contrast, Qantas, one of the world’s most flexible airlines, announced in August 2023 that they were eliminating their COVID credit expiry altogether, opting instead to offer cash refunds to customers under their conditions of carriage.
Surrounding Air New Zealand’s credit policies in light of the pandemic, Richard says Air New Zealand has always been upfront about refunds. “Those with refundable tickets at the onset of COVID had the choice between a credit or a full refund. Unlike some international airlines that converted refundable tickets into more restrictive credits, we’ve always prioritised our customers.”
He says, “Under normal circumstances, customers with non-refundable tickets who face disruptions on our end receive a 12-month credit. With the new extension, we’re offering customers six times that duration.”
Richard says the preference of many customers for non-refundable fares due to their cost-effectiveness. “Over 85% of those affected by COVID have rebooked with us. We also have compassionate refunds for those facing financial hardships and urge customers to reach out if they’re in a tight spot.”
Within the aviation industry, there is the unpredictability of airfare costs, which can fluctuate due to various factors like fuel prices. Richard says “While we can’t foresee the prices or our expenses over the next 27 months, we’re committed to doing right by our customers by providing ample time to plan and undertake their journeys.”
*Inside Tourism did not receive an answer from Air New Zealand on the possibility of altering their conditions of carriage in the future.
