Aeroplan Credit Card Review: Big Incentives for Big Spenders

Generous sign-up bonus

On top of elite status for newcomers, the Aeroplan® Credit Card also features the following sign-up bonus: Earn 60,000 bonus points after you spend $3,000 on purchases in the first 3 months your account is open. Plus, earn an additional 10,000 bonus points after your annual fee renewal payment posts and is paid in full.

Rewards for other spending

The Aeroplan® Credit Card pays holders for more than just travel-related spending. In addition to earning bonus points for purchases made with Air Canada, you’ll earn 3 points per dollar spent on groceries and at restaurants (including takeout and eligible delivery services). Because your rewards-earning isn't tied to Air Canada or to travel-specific spending for that matter, you can rack up points with the card more easily.

In addition to these ongoing rewards, cardholders have the ability to pile on even more bonus points. You can earn an additional 500 points for every $2,000 that you spend each month, up to a maximum of 1,500 points. For most, maxing out this offer by spending $6,000 a month would be difficult to do, even if you exclusively use the Aeroplan® Credit Card.

Automatic elite status for new cardholders

New account openers will also automatically get Aeroplan 25K Elite Status, the entry-level tier in Air Canada’s loyalty program. You’ll have this status for the rest of the first calendar year of cardholding and for the consecutive year as well.

To maintain 25K status, you’ll have to spend at least $15,000 each calendar year. Not many airline cards allow holders the opportunity to spend toward status.

The 25K status comes with attractive perks on Air Canada flights, including early boarding, priority check-in and upgrades, 50% discount on preferred seats and more.

» SEE: Aeroplan's sweet spots

Boost status and benefits through credit card spending

In addition to the $15,000 yearly spend requirement to maintain Aeroplan 25K status, you can also earn a one-level status boost from your existing status for the next year, when you spend $50,000 in a calendar year.

Earning these benefits requires a hefty amount of spending that can be difficult for most to meet. But the perks that come with hitting the spending thresholds can be particularly valuable for loyal Air Canada customers. Plus, because you’ll earn bonus rewards for more than just Air Canada purchases, it can be easier to rack up your spending with the card.

Free checked bags

When you use your card to pay for an Air Canada flight, you’ll get one free checked bag for you and up to eight additional people in your reservation. This is one of the more generous free-baggage policies among airline cards that offer it and can provide generous savings — particularly if you’re traveling with a large party. Air Canada typically charges $35 Canadian dollars (about $25 in U.S. dollars as of March 2024) for a first checked bag for economy class travel.

Redeem points for statement credit to cover any kind of travel

Have a pile of Aeroplan points but you're not flying anytime soon? The card's unique Pay Yourself Back® feature allows you to redeem those points for a statement credit to cover travel purchases made with your card, including hotels, car rentals, rideshare, cruises, flights on any airline and more.

Each point is worth 1.25 cents when redeemed against an eligible travel purchase. That's notable, because while it's lower than NerdWallet's value of an Aeroplan point (currently 1.4 cents), it's still a good value. Generally, if other branded travel credit cards offer the ability to use points for things other than travel with that brand, their value is greatly diminished. You can redeem your points for statement credit for up to 90 days after your purchase.

Other cards can offer more flexibility

Points earned from the Aeroplan® Credit Card can be redeemed for flights across multiple airlines, including those in the Star Alliance network. But United Airlines is the only domestic airline in the Alliance; all other airlines are internationally based.

Additionally, most of the card’s benefits like elite status, a free checked bag and reward discounts are tied to Air Canada.

A general travel card like the Chase Sapphire Preferred® Card, for example, that isn’t tied to one airline or network can offer greater redemptions and benefits flexibility. Rewards earned with the card can be redeemed for a variety of options including for travel booked through Chase at the rate of 1.25 cents per point. You can also transfer points at a 1:1 ratio to a number of domestic and international airline and hotel travel partners, including Air Canada Aeroplan. The card charges an annual fee of $95.

Aeroplan also partners with American Express. You can transfer Membership Rewards earned from several cards, like the American Express® Gold Card and the The Platinum Card® from American Express, to Aeroplan at a 1:1 rate.

Keep in mind, though, that such general travel cards typically don't come with airline-specific perks. For more options, check out NerdWallet's list of best credit card offers.

It has an annual fee

For people who fly Air Canada frequently, the Aeroplan® Credit Card certainly packs a punch. But if you rarely visit Canada (or just don't want to pay an annual fee), the card's $95 annual fee could be a dealbreaker.

The Wells Fargo Autograph® Card is a good $0-annual-fee alternative. Cardholders earn an unlimited 3 points per dollar spent on:

• Restaurants.

• Travel and transit.

• Gas and EV charging stations.

• Popular streaming services.

• Select phone plans.