But then it gets complicated. Where does the moral obligation to pay those passengers who bought the usually less expensive tickets start and finish?
Consumer NZ had to push the airline along with a complaint to Commerce Commission to ensure passengers got refunds they were legally entitled to under international rules covering flights to and through the United States.
Now Consumer is pushing further, arguing that Air NZ with access to a taxpayer loan of $900 million loan should repay the non-refundable fares as well.
It argues that the airline is in a stronger financial position than those who booked non-refundable fares to bear the financial cost.
Air New Zealand argues that it not only has the law on its side but also the country's greater good to hold on to the cash which could add up to close to $100 million.
This at an airline whose annual revenue of $6 billion has almost totally collapsed and has so far laid off 4000 of its 12,500 staff.
It has already seen its cash reserves plunge from more than $1b at the start of the year to around $640m at the end of last month.
Frankly put, the airline is saying to holders of non-refundable fares it's a case of ''you or us'' when it comes to wearing the cost.
The airline is 52 per cent taxpayer owned and is doing everything it can to avoid drawing on the Government loan which could result in a higher level of state ownership if debt is converted to equity.
Consumer Affairs Minister Kris Faafoi has indicated the law may be changed to bring New Zealand into line with not only the US but also Europe, but that will not help those caught in the current mess.
While the merits of the substantive argument can be argued, one thing is certain. Air New Zealand finds itself in midst of a PR storm that didn't have to be this bad.
It is going above and beyond with credits for those with non-refundable tickets but this has not been trumpeted.
By its own admission its systems have been overwhelmed by passengers inquiring about them or wanting to put them to use on a domestic network that is now growing with encouraging speed. More call takers are coming and more digital technology will help, the airline promises.
Its revenue chief, Cam Wallace, has been prominent on social media, usefully explaining the airline's operations during the pandemic and it was left to him to front what was a rearguard operation on the refund issue this week.
Image is crucial for all airlines, especially when they are small by global standards.
During the last two decades Air NZ developed into an airline that was smart and customer focused and its marketing gurus leveraged this expertly. Handling of the refund issue has dented that and provided more disturbed air to fly through.
