How to Calculate the Value of Aeroplan Points: A Complete Guide

Calculating the value of your Aeroplan points can significantly impact your travel and rewards strategy. That’s because if you know the average value of Aeroplan points, you can quickly decide whether the redemption is worth it. I value one Aeroplan point at 1.5 to 2 cents each. While it’s true that I can get a better value when flying business with partner airlines, my goal is to stretch out my value, not get maximum value.

Unfortunately, no online Aeroplan points value calculator will automatically calculate your value. Instead, you need to do things by hand or with a spreadsheet. The formula is as follows:

(cash price – any fees) X 100 / points required = Cost Per Point

You want the cost per point, or CPP, to fall between 1.5 and 2. While the formula is straightforward, other considerations exist when using your Aeroplan points.

Understanding Aeroplan points

Aeroplan points are the currency for Air Canada’s loyalty program. You can earn and redeem points for flights, hotels, vacation packages, cruises, car rentals, and more. These points can be earned through various means, such as flying with Air Canada, using a co-branded Aeroplan credit card, and shopping at Aeroplan partners.

What are Aeroplan points

Even though Aeroplan points are best used for flights on Air Canada and its partner, your points have a lot of flexibility. They can be used for travel redemptions, gift cards, or merchandise and more. That said, flight redemptions usually offer the best value, particularly for business class tickets.

Earning Aeroplan points

You can earn Aeroplan points in multiple ways. The easiest way is through Aeroplan or American Express affiliated credit cards. With Aeroplan credit cards, you would earn Aeroplan points on all eligible purchases. For those with an American Express Card that earns you Membership Rewards points, such as the Gold Rewards Card, you can transfer your points to Aeroplan at a one-to-one ratio.

Booking flights with Air Canada or its partner airlines also allows you to earn points. How many points you’ll earn depends on the fare class and distance.

Points can also be earned by making purchases through the Aeroplan eStore, shopping at Aeroplan partner retail stores, and more. Keeping track of promotions and special offers can significantly boost your earning potential.

Aeroplan account basics

Managing your Aeroplan account is critical to maximizing the value of your points. Your account lets you track point accrual, monitor redemptions, and stay updated on special offers. For real-time updates, you can log in to the Aeroplan website or use the Aeroplan mobile app. 

Since Aeroplan is linked directly through Air Canada, you would actually be using the Air Canada website or app to manage your account and book flights.

The value of Aeroplan points

As mentioned, I value one Aeroplan point at 1.5 to 2 cents each. I’ve determined this by searching hundreds of flights. While I’d prefer to make redemptions closer to 2 cents each, I don’t have a problem redeeming them for 1.5 cents each.

To give you some additional context, you can transfer American Express Membership Rewards points to Aeroplan at a one-to-one ratio. Since American Express Membership Rewards points are worth 1 cent each, you could double the value of your points when transferring to Aeroplan.

Calculating the value of Aeroplan points

To calculate the value of your Aeroplan points, start by identifying the cost of the reward in both points and cash. Use the formula:

(cash price – any fees) X 100 / points required = Cost Per Point

Let’s use real-life examples to show you the math. First, here’s the cash price of two flights to Los Angeles from Toronto.

Now, here are the same flights when booking on Aeroplan:

Based on this, the math is as follows:

($231 – $115) X 100 / 11,300 = 1.02 CPP

($401 – $115) X 100 / 22,200 = 1.28 CPP

The 1:35pm flight offers better value, but it also costs you more points. However, the value falls below 1.5 CPP in both scenarios, so you’re better off paying cash.

To show you how there’s value with Aeroplan, let’s look at this flight from Toronto to London.

And here’s the cost in points:

The formula is as follows for the two flights:

($1,024 – $74) X 100 / 34,500 = 2.75 CPP

($1.024 – $74) X 100 / 29,700 = 3.20 CPP

Both of those flights offer incredible value for your Aeroplan points. Premium economy also offers you a value of over 2 CPP, so it could be worth the splurge. Heck, the business seat on the 11:40pm flight gives you a value of 7.20CPP, which is absolutely crazy. That’s a no-brainer if you have extra points and have never flown on lie-flat seats before.

Factors affecting value

The value of Aeroplan points varies depending on several factors. Since Air Canada and Aeroplan use dynamic pricing, prices will always fluctuate. Some routes will naturally be more expensive than others. 

Class of service is another key factor. Economy class may provide decent value as there are many flights you can get at a reasonable number of points. As you saw in the above example, business class seats can also be incredibly valuable, but they will cost you a lot of points. Premium economy is currently the sweet spot when it comes to cost and comfort.

Additional factors include the time of booking. Early bookings can sometimes result in lower point redemptions, affecting the overall value favourably. Also, if you’re booking on partner airlines (when available), your CPP could increase.

Maximizing point value

Focus on high-value redemptions to maximize the value of your Aeroplan points. Consider using your points for business class travel. Though the point cost is higher, the value per point often increases substantially. That said, if you’re looking to use your points simply to travel for less, it likely makes more sense to stretch out your points by booking economy seats.

Booking your flights early can often offer better value. If you can plan your trips about a year out, you may see partner airline seats available. Avoid last-minute bookings, as those tend to be highly inflated.

Lastly, avoid using points for low-value items like gift cards or merchandise, which typically yield a lower CPP. 

Redeeming Aeroplan Points

Aeroplan points can be redeemed for a variety of rewards, allowing you to enjoy flights, hotels, vacation packages, and cruises. Knowing the best ways to use your points ensures you get the maximum value.

Flight rewards

Redeeming Aeroplan points for flights is often the most valuable option. You can use your points on any available seat on Air Canada and its partner airlines (limited seats). What you’ll notice when you’re about to confirm an Aeroplan redemption is that you have multiple points + cash redemption options.

Here’s that same 11:40pm Toronto to London flight as an example:

Despite Aeroplan listing a “popular” choice as the second from the left, the third from the left (the one quoted in your initial search) almost always has the best value.

In this scenario, the CPP for each redemption is as follows:

• 4.06 CPP
• 3.53 CPP
• 3.20 CPP
• 2.76 CPP

Ironically, in this specific example, the best option is to choose the fewest points and the most cash. This is very rare, but it also shows why you should always check CPP for all redemptions.

Hotels

You can also use Aeroplan points to book hotel stays. While the value of your points doesn’t go as far with hotels, there are a few interesting value propositions with Aeroplan. The first is its HotelSavers program, which allows you to save up to 30% in points at select partner hotels.

HotelSavers is clearly labelled on the property, so it’ll be easy to see which hotels offer good value. You’ll also notice that Aeroplan lists the regular nightly rate, so it’s easy to calculate your value.

The formula you would use to calculate the value of hotels is the same as that of flights. However, since there are no additional fees, you omit that. Your formula would look like this:

Cash price X 100 / points required = Cost Per Point

Based on this, we get the following values for the above hotels:

• InterContinental Hotels Miami – 1.09 CPP
• Kimpton Epic Hotel – 1.18 CPP
• Novotel Miami Brickell – 1.08 CPP

These CPPs are clearly not very good compared to flights, but it’s another option for your points. Also, HotelsSavers does have promos where if you book four nights on points, you’re only paying for three. In those situations, the value becomes much better, but still not as good as flights.

The value per point of hotels often varies. Generally, it might be less than for flights but can still be a convenient way to reduce travel costs. Comparing cash prices and point requirements helps you determine if it’s a good deal.

Vacation packages

Vacation packages are another option to consider. You can use your Aeroplan points to book vacation packages via Air Canada Vacations. The CPP is no greater than 1, so using your points in this situation is not the greatest idea. That said, booking your travel via Air Canada Vacations can make sense.

For example, a vacation package to a Caribbean destination could cost fewer points than booking flights and hotels separately. Occasionally, Air Canada Vacations has promos where you can earn additional points when booking cash or reward packages with them.

Cruises

Although Aeroplan partners with various cruise lines, you won’t get any increased value if you use your points here. The only major benefit of using Aeroplan for cruises is if they offer a special rate or amenities as part of your booking.

Using points for cruises is a luxurious way to explore multiple destinations. Aeroplan partners with various cruise lines, letting you use your points toward short and extended cruises.

Choosing the right Aeroplan credit card

Selecting the best Aeroplan credit card involves considering welcome bonuses, benefits, and perks offered by American Express cards. Here’s how you can evaluate your options effectively.

Welcome bonuses

Welcome bonuses can vary significantly between cards. For instance, you can earn anywhere between 10,000 to 100,000 Aeroplan points. It’s critical to pay attention to the minimum spending requirement and how the bonus is structured.

The best welcome bonuses are when you get a set amount of points after spending a certain amount. For example, 50,000 Aeroplan points when spending $3,000. However, in recent times, the typical welcome offer is usually broken up into two to three spending thresholds, such as 10,000 points after your first purchase, 20,000 points when you spend $5,000 in the first six months, and another 20,000 points on your anniversary when you spend $7,500 in the first 12 months of cardmembership.

Since welcome bonuses change frequently, you should keep an eye on them and apply as soon as you see a good offer. Alternatively, if you know you have major expenses coming up, you could apply for a card in advance to take advantage of the welcome offer.

Here’s a list of the best Aeroplan credit cards. 

Credit card rewards and benefits

Aeroplan has three credit card issuers: CIBC, TD, and American Express. There are also three tiers of Aeroplan cards: basic, core, and premium. Generally, the tier of card will be very similar regardless of the issuer. For example, the TD and CIBC Aeroplan Visa Infinite Card are nearly identical but may have different welcome offers.

On the premium level, the TD and CIBC Aeroplan Visa Infinite Card are technically better than the American Express Aeroplan Reserve Card since they include 6 free airport lounge passes from Visa and the Maple Leaf Lounge access. However, the American Express Aeroplan Reserve Card usually has the better welcome offer. 

When evaluating the rewards and benefits, consider the earning rate, Air Canada benefits, and travel insurance included. 

American Express cards

American Express cards are another way to earn Aeroplan points. With American Express Membership Rewards, you can transfer points directly to Aeroplan at a 1:1 ratio. This is incredibly valuable since there are more cards you can get that can earn you Aeroplan points. 

Additionally, American Express cards frequently feature lucrative welcome bonuses and have high earning rates, which can quickly boost your Aeroplan points balance. You may not get Air Canada benefits, but you can get other perks, such as unlimited airport lounge access through the Amex global lounge collection. 

One of the best cards to get is the American Express Cobalt Card since it has arguably the highest earning rate in Canada.

Utilizing Aeroplan partners

Maximizing the value of your Aeroplan points involves leveraging the network of partners available. These partners range from airlines within the Star Alliance to retail and dining partners through the Aeroplan eStore.

Partner airlines and alliances

Aeroplan is part of the Star Alliance, which includes numerous partner airlines. Using your points with these partners often provides the best redemption value. Notable airlines include United Airlines, Lufthansa, and Singapore Airlines. The only problem is that these partners don’t release many seats, so getting the fixed pricing can be tough.

To find the best deals, frequently check the Aeroplan website and try to book as early as possible.

On a positive note, when flying on any Star Alliance member, you can earn Aeroplan points on cash fares.

Aeroplan eStore

The Aeroplan eStore offers many opportunities to earn points from everyday online shopping. You can purchase from various retailers like Apple, Hudson’s Bay, and Indigo. Simply start your shopping journey through the eStore link found on the Aeroplan eStore to earn points on your eligible purchases. 

Using the eStore allows you to accumulate points without much effort. Promotions and special offers often provide bonus points, increasing your earn rate. Keep an eye on these promotions to maximize your earnings.

Retail partners

Beyond online shopping, Aeroplan points can be earned through a few retail partners. Budget Car Rentals, LCBO and Uber are their biggest partners.