In a significant move that aligns it with major U.S. carriers, Air Canada has announced a shift to a revenue-based frequent flyer program, following the footsteps of American Airlines, United and Delta. This change, set to take effect on January 1, 2026, marks a pivotal shift from the traditional distance-based earning model, aligning more closely with industry trends. The move, announced in Montreal in August 2025, is designed to simplify the program, offering more transparency and rewarding travellers based on how much they spend rather than how far they fly. American Airlines, United and Delta have already embraced this model, providing a clearer path for passengers to earn points and status. By joining these airlines, Air Canada aims to enhance customer loyalty and remain competitive in the global aviation market. This overhaul will impact both frequent flyers and occasional travellers, offering a more predictable way to earn rewards.

Understanding the Shift to Revenue-Based Loyalty

Historically, frequent flyer programs were based on the distance flown, with members earning miles or points based on how far they traveled, sometimes adjusted for fare class. However, Air Canada’s Aeroplan program will change this system drastically by moving to a revenue-based model. Starting in 2026, members will earn 1 Aeroplan point for every CA$1 spent on the base fare, excluding taxes and ancillary fees. This is a shift toward simplicity, making it easier for members to predict how many points they will earn with each flight, aligning with the practices already implemented by American Airlines, United and Delta.

Why the Shift?

For years, travellers have been accustomed to earning points based on the distance flown. However, this model often confused members and didn’t adequately reflect the actual value a traveller brought to an airline. According to Scott O’Leary, Air Canada’s Vice President for Loyalty and Product, this change is meant to make it easier for members to understand and track how their spending translates into rewards. By focusing on revenue, airlines can better match the rewards to the true value of the tickets purchased. For instance, business-class passengers who spend more on tickets will earn more points, reflecting their higher fare contribution.

In contrast, distance-based programs often rewarded members flying on lower-cost tickets, which sometimes led to an imbalance in the loyalty program’s structure. With this shift, Air Canada hopes to create a more equitable and transparent system that rewards loyalty based on spending.

What’s Changing for Members?

Under the new system, base members will earn 1 point per CA$1 spent, with elite members receiving a multiplier to accelerate their earnings. For instance, a 25K elite member will earn 2 Aeroplan points for every CA$1 spent, while Super Elite members will earn 6 points per dollar. This multiplier will apply not only to Air Canada flights but also to flights operated by Air Canada’s partner airlines, such as United, Lufthansa and Copa Airlines.

Furthermore, elite status will now be earned through Status Qualifying Credits (SQCs), which will be awarded based on how much money members spend. These credits will replace the traditional flight distance or segment-based thresholds for achieving elite status. The new thresholds for elite status will be:

• 25K: 25,000 SQCs
• 35K: 35,000 SQCs
• 50K: 50,000 SQCs
• 75K: 75,000 SQCs
• 125K: 125,000 SQCs

In addition to flight earnings, members can also earn status credits through spending on Air Canada Vacations, partner airlines and even credit card purchases. However, spending on certain credit cards will be capped at a maximum of 25,000 status credits per year.

Comparing Air Canada to U.S. Carriers

American Airlines, United and Delta have already made similar changes to their frequent flyer programs by shifting to revenue-based earning systems. Here’s a closer look at how these programs compare:

American Airlines – AAdvantage Program

American Airlines has implemented a revenue-based system where members earn 5 miles per USD$1 spent on flights. Elite members earn additional miles based on their status level, with higher earners getting more rewards for flying premium cabins. In addition, elite status is determined by the amount spent, not just the number of flights.

United Airlines – MileagePlus Program

United Airlines shifted to a revenue-based system in 2015, with members earning 5 miles per USD$1 spent. United also uses Status Qualifying Points (SQPs) to determine elite status, which can be earned through both spending and flying. Premium passengers and those with United-branded credit cards are rewarded with additional miles and status credits.

Delta Air Lines – SkyMiles Program

Delta’s SkyMiles program also operates on a revenue-based system, with members earning 5 miles per USD$1 spent. Elite members get more bonus miles for premium cabin fares and Medallion Qualification Dollars (MQDs) are used to determine elite status. Like United, Delta also rewards credit card spending with additional miles and status credits.

Who Benefits from These Changes?

For High Spenders

The most significant benefit will go to premium travellers who spend significantly on business and first-class tickets. The revenue-based system rewards them with more points for their high-ticket purchases. These changes are also likely to benefit those who purchase higher-priced tickets or travel more frequently.

For Casual Travellers

While the revenue-based system may seem to favor those who spend more, Air Canada has emphasized that this new structure is designed to be clearer and simpler for all members. Casual travellers who typically fly on lower-cost tickets may earn fewer points than before, but the system should be more predictable and transparent.

For Credit Card Holders

Credit card holders will see a slight shift, as Air Canada is removing the ability to earn status solely through credit card spending. The new system will allow cardholders to earn status credits based on their spending, but there will be caps on the total credits that can be earned through card purchases.

A Strategic Move in a Competitive Market

This overhaul of Aeroplan is a strategic move for Air Canada, aiming to align itself with global trends and remain competitive with American Airlines, United and Delta. With this new structure, Air Canada hopes to strengthen loyalty and keep its frequent flyers engaged, while also attracting new members with its clearer and more transparent earning system. By emphasizing spending over distance, Air Canada joins a growing list of airlines that are rethinking how loyalty should be rewarded in today’s competitive aviation market.

The Future of Airline Loyalty Programs

As Air Canada joins the ranks of American Airlines, United and Delta in shifting to a revenue-based loyalty system, frequent flyers will need to reassess how they approach earning points and achieving elite status. While the changes are set to simplify and clarify the rewards process, they may also have significant implications for those who were accustomed to the distance-based system. As airlines continue to refine their loyalty programs, passengers can expect further innovations that will likely reshape the frequent flyer landscape in the years to come.

Photo Credit:

• Air Canada
• American Airlines
• United Airlines
• Delta Airlines