What are Airpoints credit cards?
Airpoints credit cards allow you to earn Airpoints Dollars on every purchase you make. These points can be redeemed for Air New Zealand flights, upgrades, seat selections, and other travel benefits. For frequent flyers and those who regularly book holiday travel, Airpoints cards can represent genuine value despite their higher annual fees.
Airpoints Dollars are earned at a fixed rate, typically 1 Airpoint per $50 spent to 1 Airpoint per $100 spent, depending on the card tier. The value of each Airpoint is approximately NZ$0.01-$0.015, meaning a 1 Airpoint per $50 earn rate delivers roughly 2% return on spending.
How Airpoints earning works
When you use an Airpoints credit card to make a purchase, you automatically accumulate Airpoints Dollars. Most cards earn points on all purchases except cash advances, balance transfers, and certain categories like insurance or utility payments.
Airpoints are credited to your Air New Zealand account within 2-4 weeks of purchase. You can track your balance online through the Air New Zealand website. Points accumulate indefinitely (though Air New Zealand has historically expired unused points after 3 years, though this can be negotiated).
Earning rates across different cards
Different banks offer different earn rates on their Airpoints cards. Premium cards with higher annual fees typically offer better earn rates. For example:
- Standard Airpoints cards: 1 Airpoint per $100 spent
- Mid-tier Airpoints cards: 1 Airpoint per $75 spent
- Premium Airpoints cards: 1 Airpoint per $50 spent, sometimes with bonus points on international travel
Some cards also offer accelerated earning in specific categories (e.g., doubled points on dining or hotel bookings) or promotional bonus Airpoints for new cardholders.
Airpoints credit cards from major NZ banks
| Bank | Card name | Earn rate | Annual fee | Interest rate (p.a.) |
|---|---|---|---|---|
| ANZ | ANZ Airpoints Visa | 1 per $100 | $250 | 17.95% |
| ANZ | ANZ Airpoints Visa Platinum | 1 per $50 | $300 | 17.95% |
| Kiwibank | Kiwibank Airpoints Visa | 1 per $100 | $150 | 16.95% |
| Kiwibank | Kiwibank Airpoints Visa Platinum | 1 per $75 | $200 | 16.95% |
| Westpac | Westpac Airpoints Visa | 1 per $100 | $220 | 18.50% |
| Westpac | Westpac Airpoints Visa Platinum | 1 per $50 | $300 | 18.50% |
Calculating the value of Airpoints cards
Whether an Airpoints card delivers value depends on how much you spend annually and how you value Airpoints. Here's how to calculate:
Example calculation
Assume you spend $30,000 annually and a Kiwibank Airpoints card costs $150 per year with a 1 Airpoint per $100 earn rate:
- Annual spend: $30,000
- Airpoints earned: 300 (at 1 per $100)
- Value of Airpoints at $0.015 each: $4.50
- Total cost (annual fee minus Airpoints value): $150 - $4.50 = $145.50 net cost
This card breaks even only if your annual spend exceeds $33,333 (at which point Airpoints value equals the annual fee). For lower annual spenders, a no-fee or low-rate card is more economical.
Premium cards and higher earners
Premium Airpoints cards with 1 point per $50 earn rates offer better value for high spenders. If you spend $60,000 annually:
- Airpoints earned: 1,200 (at 1 per $50)
- Value of Airpoints: $18.00
- Premium card annual fee: typically $300
- Net cost: $282 (versus an equivalent low-rate card at $100)
For heavy spenders, this $182 premium is often justified by the additional Airpoints and the credit card's other benefits.
Who should get an Airpoints card?
Frequent flyers
If you take 2-3 domestic flights or 1 international flight annually, an Airpoints card could pay for itself through accumulated points. Frequent flyers who can accumulate points quickly should prioritise higher earn rates.
Family holiday planners
Families planning annual holidays can accumulate Airpoints quickly through household spending. If you can reach $40,000+ in annual household spending across Airpoints cards, the fees are justified.
High earners
If your annual household spend is $60,000+, premium Airpoints cards with higher earn rates become increasingly valuable. Premium cards often include additional benefits like travel insurance and lounge access.
Who should avoid Airpoints cards
If you spend less than $20,000 annually, rarely fly Air New Zealand, or carry a regular credit card balance, a no-fee or low-rate card is more cost-effective. Never get an Airpoints card just to accumulate points—focus on the lowest total cost of borrowing.
Tips for maximising Airpoints value
Consolidate spending on one card
Use your Airpoints card for all household spending (groceries, petrol, utilities, insurance) to accumulate points quickly. Splitting spending across multiple cards slows your point accumulation.
Pay your full balance monthly
Interest charges quickly erase the value of earned Airpoints. A $5,000 balance at 17% p.a. costs $850 per year—far more than typical Airpoints value. Always pay your full balance to maximise card value.
Book strategically
Airpoints have higher value when redeemed for premium cabin seats or international flights. Avoid redeeming points for cheap domestic flights where cash fares are already low.
Check promotional offers
Banks frequently run promotions offering bonus Airpoints for new cardholders (typically 5,000-15,000 bonus points). These can offset the annual fee in the first year.
Compare all credit card options
Unsure whether an Airpoints card is right for you? Compare interest rates, fees, and rewards across all NZ credit card types to find your ideal card.
Frequently asked questions
How long do Airpoints Dollars stay valid?
Airpoints Dollars typically remain valid for 3 years from the date they're earned. Air New Zealand can extend the expiry date if you're actively using your account or have held an Airpoints card recently. Always check your individual terms, as different cards may have different policies.
What can I redeem Airpoints Dollars for besides flights?
Besides Air New Zealand flights, you can redeem Airpoints for seat selections, extra baggage allowance, lounge access, and Air New Zealand store purchases. The Airpoints website shows all available redemptions and their point costs.
Can I transfer Airpoints to another person?
No, Airpoints Dollars are personal to your Air New Zealand account and cannot be transferred. However, you can use them to purchase flights for family members, which effectively lets others benefit from your points.
What's the minimum spending to make an Airpoints card worthwhile?
For standard Airpoints cards earning at 1 per $100, you typically need $25,000+ in annual spending to justify the annual fee. For premium cards with higher earn rates, break-even spending is higher (typically $40,000+).
Do I pay interest on a credit card balance even if I'm earning Airpoints?
Yes, interest charges apply to any balance you carry, regardless of your Airpoints earn rate. Credit card interest typically outweighs the value of earned Airpoints by a significant margin, so always pay your full balance monthly.