Air NZ set to rake in $20M in unused travel credits

[QF WP]

Just saw this on LinkedIn (thanks to a post from Jeremy Sullivan):

In Air New Zealand’s latest earnings forecast released today, one detail really stands out: they’re set to gain $20M from “credit breakage” in the second half. This is money from credits that customers haven’t used—and likely won’t. It’s a reminder to check your Air NZ account for unused credits before they become part of that $20M!

Credit Breakage Explained:

This typically includes prepaid fares, or Airpoints credits that expire or go unused. Air NZ recognises this when they’re confident customers won’t redeem them. See comments for the fine print.

Why It’s Happening:

The pandemic led to mass cancellations, with customers forced to accept credits over refunds. Some may have forgotten these, moved, or found travel plans unfeasible, especially with Air NZ’s reduced capacity (fewer planes) limiting booking options.

I hope than any AFF'er who has a credit with AirNZ checks their account.

 

[QF WP]

Also from Jeremy:

The fine print: How long is a credit valid for?
If you received a credit on or before 30 September 2022, you will have until 31 January 2026 to book new flights, and until 31 December 2026 to complete travel.

For credits received from 1 October 2022, you will have 12 months from the day your credit was processed to book a flight, and up to a further 12 months to travel.[\quote]

 

[Mwenenzi]

I have NZ$17 from cancelled CV19 flight (Mar 2020) and partial use of credit for other Air NZ flights. Would have preferred a full cash refund, but was refused. Have until 31 Dec 2026 to use. Or give away if I can.

Expect QF will have a similar wind fall from credits that people forget about. Same for other airlines

 

[clifford]

Yes, my wife had these issues with NZ credits. She was "forced" to book and fly before expiration of the credits, and as a result, she says she will never fly NZ again. I encourage her to stick to her principles...