Analyzing Air Canada’s New Income-Primarily based Factors Incomes Mannequin

With Air Canada’s announcement that it’s adopting a revenue-based mannequin in 2026, incomes Aeroplan factors on flights goes to look loads completely different for passengers in comparison with now.

On this article, I’ll share my ideas on who stands to learn from Air Canada’s new revenue-based mannequin for incomes factors (in addition to who will earn much less), illustrated with examples. Plus, I’ll additionally share my views on how one can earn extra Aeroplan factors no matter your flying exercise.

Previous to studying this text, I like to recommend studying via our complete information to all the adjustments which might be set to take impact subsequent yr, as you’ll wish to have all of these particulars recent in your thoughts for this evaluation.

Who Advantages from Income-Primarily based Factors Incomes Fashions?

First up, let’s have a fast dialogue about who advantages from revenue-based fashions (i.e., what Air Canada is shifting to in 2026) as a substitute of distance- and fare-based fashions (i.e., what Air Canada makes use of now).

Because the title of the mannequin suggests, revenue-based fashions profit you extra as you spend extra and interact with the airline and its companions. Plain and easy.

Certainly, this sentiment is mirrored in what Scott O’Leary, Vice President, Loyalty & Product at Air Canada, needed to say about these adjustments in Air Canada’s press launch:

“Aeroplan has grown into probably the most rewarding and extensively used journey loyalty packages,”stated Scott O’Leary, Vice President, Loyalty & Product at Air Canada. “Our most engaged members do extra than simply fly with us—they earn with our companions, select versatile fares, and carry Aeroplan bank cards. These adjustments assist us higher acknowledge their loyalty and maintain enhancing the expertise.”

In different phrases, the transfer to this revenue-based mannequin will reward Aeroplan’s most engaged members for selecting to fly with Air Canada, partaking with its companions, and holding an Aeroplan co-branded bank card.

From a sensible perspective, the transfer to a revenue-based mannequin will seemingly imply:

• For those who’re somebody who prefers to search out the bottom value, you’ll seemingly earn fewer factors than earlier than (and have a more durable time qualifying for Elite standing)
• For those who’re somebody who travels on decrease financial system fares on long-haul routes, you’ll seemingly earn fewer factors than earlier than (and have a more durable time qualifying for Elite standing)
• For those who’re somebody with Aeroplan Elite standing who travels steadily on short-haul routes, you’ll seemingly earn extra factors than earlier than (and have a better time qualifying for Elite standing)
• For those who’re somebody with Aeroplan Elite standing who books extra versatile fares, premium-cabin fares, and/or travels on the final minute, you’ll seemingly earn extra factors than earlier than (and have a better time qualifying for Elite standing)

After all, everybody’s state of affairs is completely different, and these are simply basic themes somewhat than hard-and-fast guidelines.

We’ll look at this in additional element all through the remainder of the article.

Analyzing Incomes Factors with Air Canada’s New Income-Primarily based Mannequin

Air Canada’s shift to a revenue-based mannequin for incomes factors on paid flights could be very easy: on each fare (together with Economic system (Primary) fares, you’ll earn 1 Aeroplan level per greenback spent with out standing, or 2–6 Aeroplan factors per greenback spent with standing.

In comparison with the present mannequin, you gained’t should make use of exterior instruments to calculate the gap between your origin and vacation spot, nor will it’s important to run any formulation of distance, incomes price primarily based in your fare, and any Elite standing bonuses.

Whereas the brand new mannequin is simpler to grasp, it additionally signifies that there’ll seemingly be some noticeable adjustments to the way you earn factors while you fly with Air Canada.

For example the distinction between the revenue-based mannequin and the present distance- and fare-based mannequin, let’s take a look at 4 completely different situations to check the Aeroplan factors accrual.

In every instance, we’ll think about the next:

• The fare sort
• The present incomes potential, together with any Elite bonuses chosen as a Choose Profit
  • This illustrates the present best-case state of affairs, with the bonus considered
• The long run incomes potential, together with any Elite bonuses via the brand new Factors Multiplier Core Profit
• The distinction in Aeroplan factors earned between the 2 fashions (if any)

First up, let’s take a look at a one-way Economic system (Normal) fare that prices $250 (CAD) excluding taxes and costs between Toronto Pearson (YYZ) and Winnipeg (YWG).

Within the above instance, Aeroplan members will earn more-or-less the identical Aeroplan factors with the brand new mannequin, whereas Elite members would earn extra throughout the board. The variations develop into extra obvious as you progress up the standing ladder.

Subsequent, let’s think about a one-way Economic system (Flex) fare that prices $350 (CAD) excluding taxes and costs between Vancouver (YVR) and Toronto Pearson (YYZ). 

Within the above instance, everybody would earn fewer factors throughout the board with the brand new mannequin, together with these with Elite standing.

Right here, the comparatively low price of the flight ($350) and the comparatively lengthy distance between the 2 cities (roughly 2,076 miles) play the largest issue.

Subsequent, think about a round-trip reserving between Toronto Pearson (YYZ) and London Heathrow (LHR) on a Enterprise Class (Lowest) fare that prices $5,000 (CAD) excluding taxes and costs.

Within the above instance, Aeroplan members with out standing and people with 25K standing would earn fewer factors than with the revenue-based mannequin, whereas anybody with 35K standing and up would earn extra factors.

It’s value noting that Tremendous Elites would virtually double the variety of factors earned with a revenue-based mannequin in comparison with the present mannequin.

Lastly, let’s take a look at a round-trip journey between Vancouver (YVR) and Brisbane (BNE) booked on an Economic system (Flex) fare that prices $2,000 (CAD) excluding taxes and costs.

Within the above instance, which covers an ultra-long-haul route between Vancouver and Brisbane on an Economic system (Flex) fare, everybody would earn considerably fewer factors with the revenue-based mannequin than with the present mannequin.

Nevertheless, if you happen to think about what which may seem like on a premium financial system or enterprise class fare, you would possibly see these numbers shifting extra in the direction of the revenue-based mannequin being extra rewarding (particularly for upper-tier Elites). 

I feel the above examples are a superb illustration of how long-haul flights in financial system will develop into much less rewarding with the revenue-based mannequin, whereas shorter-haul flights and flights in premium cabins will develop into extra rewarding (particularly for these with Elite standing).

Now, one issue with the brand new revenue-based mannequin that we haven’t thought of is how new promotions would think about.

Let’s suppose that Air Canada launches a promotion for 3x factors per greenback spent on a particular route for all fare varieties. This could imply that you possibly can earn factors multipliers on the flight in 3 ways:

• 3x factors as per the promotion
• 2–6x factors as an Elite member
• 1–3x factors with an Aeroplan co-branded bank card

A state of affairs like this might have the potential to be very profitable, so going ahead, it’s in your finest curiosity to keep watch over promotions, leverage your Elite standing multiplier, and pay on your flights with an Aeroplan bank card to stack your earnings.

The Greatest Technique to Earn Aeroplan Factors Is with Credit score Playing cards

For many individuals, incomes Aeroplan factors is far simpler to do by means of bank cards than it’s by flying, and in my view, this may proceed to be the case going ahead.

With an Aeroplan co-branded bank card, you possibly can earn Aeroplan factors on each greenback that you simply spend, which come along with the factors you possibly can earn via a welcome bonus.

Plus, Aeroplan co-branded bank cards include different Air Canada advantages, equivalent to a free first checked bag, most well-liked pricing on Aeroplan redemptions, and Maple Leaf Lounge entry (on premium playing cards). 

Along with Aeroplan co-branded bank cards, Aeroplan can also be a 1:1 switch accomplice with American Categorical Membership Rewards. In different phrases, each Membership Rewards level you earn may be transformed into an Aeroplan level.

Usually talking, American Categorical playing cards have a tendency to come back with very profitable welcome provides and/or beneficiant category-earning charges.

For instance, the American Categorical Cobalt Card earns 5 Membership Rewards factors per greenback spent on groceries and eating in Canada.

For those who spend $1,000 each month on groceries and eating, that works out to five,000 MR factors monthly, or 60,000 MR factors over the course of the yr (which might be transformed to 60,000 Aeroplan factors).

Excluding any promotions or Elite standing bonuses, you’d should spend $60,000 on Air Canada flights to earn the identical variety of factors.

Plus, if you happen to think about factors earned via on-line buying with the Aeroplan eStore, partaking with Aeroplan’s companions, Chexy, and different spending on Aeroplan and Amex bank cards, you possibly can see a straightforward path to constructing a wholesome Aeroplan stability yearly with a little bit of effort.

Due to this fact, even if you happen to’re somebody who will earn fewer factors on paid flights with Air Canada’s new revenue-based mannequin, there must be a pathway so that you can equal or enhance your incomes in comparison with now with the appropriate bank card technique.

If you wish to quick observe changing into a professional in incomes and redeeming Aeroplan factors, you’ll undoubtedly wish to try our Factors Teaching service, which pairs you with an professional who will give you customized details about the way to finest attain your journey objectives.

Conclusion

Subsequent yr, while you fly with Air Canada on paid flights, you’ll earn Aeroplan factors primarily based on how a lot you spend somewhat than how far you fly.

The introduction of this revenue-based incomes mannequin will seemingly profit these with Aeroplan Elite standing and anybody who books extra versatile fares or premium cabins. In the meantime, if you happen to’re a budget-conscious traveller or if you happen to’re used to incomes factors on long-haul routes in financial system, you’ll in all probability earn fewer factors than earlier than.

In both occasion, you possibly can proceed to leverage Aeroplan co-branded bank cards and American Categorical Membership Rewards factors to pad your Aeroplan stability rapidly.