Some New Zealanders with Maori heritage wear tattoos to mark their genealogy and heritage.
The airline said from 1 September, all employees will be able to display "non-offensive" tattoos at work.
It said there was growing acceptance of tattoos, particularly as a means of personal expression.
The airline's tattoo restrictions attracted criticism and some accused it of hypocrisy for using other aspects of Maori culture - such as language and symbols - in its marketing efforts.