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The airline has launched the new tool to allow customers to re-book through the website without having to go through the call centre.
The move comes following an apology from Air New Zealand to customers frustrated at the slow re-booking process.
Air New Zealand chief commercial and customer officer Cam Wallace said credit from an international flight can now be used on a domestic one and the credit can include another traveller.
"We know this hasn't been quick to resolve, and we would like to thank our customers for their patience," he said.
"Pre-Covid-19, we didn't have the systems in place for customers to redeem credits at this scale, so our teams have had to build this long-term solution from scratch.
"Customers now have more flexibility with using their credits, including the ability to use credit from an international flight to book a domestic one and vice versa, and for the credit owner to choose who the credit is used for.
"We've also extended the period in which customers can use their credit - they have until 31 December 2021 to book and a further 12 months after booking to travel."
Currently the system has the capacity to deal only with single bookings but it is being extended.
The airline is also working on a solution for international customers and those who have booked through a travel agent.