AUCKLAND– Air New Zealand (NZ) has issued an apology after initially refusing to reimburse a family for tipping expenses incurred while stranded in New York City (JFK) following a grounded flight.
The family, travelling with two young children, was booked on the airline’s flagship NZ1 service from John F. Kennedy International Airport (JFK) to Auckland (AKL) on July 19, 2025.
The flight was cancelled due to a fuel leak, leaving passengers disrupted for several days. While base expenses were covered, the airline first denied reimbursement for US$150 ($253.34) in tips, sparking a dispute.
Photo- Bidgee; Wikimedia CommonsAir New Zealand Passengers Stranded
The cancelled NZ1 service with Boeing 787-9 Dreamliner on July 19 created immediate challenges for passengers. After engineers identified a fuel leak, the aircraft was grounded. A replacement flight scheduled for July 20 was also cancelled, extending the disruption.
Families with children were left waiting at check-in areas, with little clarity on next steps. One passenger recalled her children falling asleep on the airport floor amid the confusion.
Air New Zealand offered hotel vouchers, though some passengers chose alternative arrangements. The affected family stayed with relatives in New York, saving the airline additional accommodation expenses.
Despite this, they faced unavoidable daily costs, particularly gratuities for meals and transport, which are customary and expected in the United States, NewstalkZB reported.
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Photo: avgeekwithlens/ Harsh TekriwalDispute Over Tipping Costs
The family reported spending about US$150 on tips during their extended stay. Air New Zealand initially declined to reimburse these costs, citing a policy against covering gratuities.
The refusal was described by the passenger as frustrating, given that tipping is not optional in the US and is a cultural norm for respecting service workers.
The passenger noted that by staying with family, they saved Air New Zealand about US$1000 in hotel expenses.
Yet, they felt “short-changed” by the airline’s rejection of tipping costs, which they argued were unavoidable. For the family, the principle mattered as much as the amount.
Photo:- By Masakatsu Ukon – Air New Zealand, Boeing 787-9, ZK-NZF NRT, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=57397991Air New Zealand’s Response
After the matter was raised publicly, Air New Zealand admitted its customer had been given incorrect advice.
Alisha Armstrong, the airline’s General Manager of Customer, confirmed the policy does allow reimbursement for reasonable expenses in such cases. She acknowledged that in the US, tipping qualifies as a reasonable and expected cost.
The airline apologised directly to the passenger and agreed to reimburse the gratuities in full. Armstrong added that the case will serve as a “valuable learning opportunity” for the airline’s customer service teams to avoid similar mistakes in the future.
Photo: Aero Icarus | FlickrWider Disruptions on US Routes
Air New Zealand’s New York services faced further operational issues in July. Storms and air traffic management constraints caused additional cancellations, including NZ2, which left passengers stranded overnight in Washington DC.
The repeated disruptions highlight the ongoing operational challenges faced by long-haul carriers on transpacific routes.
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