The maximum sentence is a fine of $50,000.
Immigration New Zealand national border manager Senta Jehle told Fairfax it was a serious misconduct for the airline to completely ignore the alert.
"INZ takes this type of offending very seriously as airlines have a crucial role to play in maintaining the integrity of New Zealand's immigration system and keeping the border secure.
"We work very closely with airlines to help this happen and it's very disappointing that we've had to take prosecution action."
Ms Jehle told Fairfax the case was particularly serious as the passenger had been refused entry to New Zealand in the past.