Air Canada’s 2026 Aeroplan Overhaul Analysis

Air Canada recently announced sweeping changes to the Aeroplan elite status program that will fundamentally alter how Canadians earn and maintain elite benefits. Starting January 1st, 2026, the airline is replacing its distance-based system with a spending-focused model that prioritizes revenue over miles flown.

These changes represent the most significant transformation in Aeroplan’s history, and while many frequent flyers are expressing concern, the new system actually creates opportunities for certain traveler profiles. Here’s everything you need to know about what’s changing and how to position yourself for success.

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The Fundamental Shift: From Distance to Dollars

Beginning January 1st, 2026, Air Canada is eliminating the current multi-metric system (Status Qualifying Miles, Status Qualifying Segments, and Status Qualifying Dollars) in favor of a single measurement: Status Qualifying Credits (SQCs). This new system bases elite status qualification almost entirely on spending rather than distance traveled.

Practical Example: Calgary to Frankfurt

Under the current system, an economy flight covering 4,700 miles would earn different amounts based on fare type:

• Economy Flex: 4,700 Status Qualifying Miles
• Economy Standard: 2,350 Status Qualifying Miles

Under the new 2026 system, the same flight earning is determined solely by spending:

• If the base fare costs $800 CAD: Economy Flex earns 3,200 SQCs, Standard earns 1,600 SQCs
• Distance becomes irrelevant; only the fare paid matters

This change effectively eliminates the strategy of booking inexpensive long-haul flights to maximize status earning, commonly known as “mileage runs.”

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Impact Analysis: Winners and Losers

Travelers Who Benefit

Business Travelers with Flexible Budgets: Frequent business class passengers and those booking premium economy or flexible fares will see improved status earning. A $5,000 business class flight generates 20,000 SQCs, making elite status more attainable for high-value customers.

Domestic Frequent Flyers: Expensive domestic routes like Toronto-Vancouver ($600+) previously offered limited status earning potential due to shorter distances. Under the new system, these flights provide better SQC earning relative to their cost.

Strategic Credit Card Users: Premium Aeroplan cardholders can now earn up to 25,000 SQCs annually through credit card spending ($125,000 in annual purchases), creating a path to elite status through everyday spending rather than flying.

Travelers Who Face Challenges

Budget-Conscious International Travelers: Those who book advance-purchase economy fares to Europe or Asia will find status qualification significantly more difficult. Previously, these travelers could leverage long distances for status earning despite low fares.

Price-Sensitive Frequent Flyers: Travelers who optimize for lowest fares while flying frequently will need to reassess their approach, as basic economy fares earn zero SQCs.

Current Elite Members Without Premium Cards: Those maintaining status through frequent but inexpensive travel may find the new system requires substantial changes to their booking patterns.

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Significant eUpgrade Reductions

Beyond the earning structure changes, Air Canada has substantially reduced eUpgrade allotments for most elite tiers:

• 25K Status: Reduced from 20 to 5 eUpgrades (75% decrease)
• 35K Status: Reduced from 20 to 10 eUpgrades (50% decrease)
• 50K Status: Reduced from 20 to 15 eUpgrades (25% decrease)
• 75K Status: Maintained at 20 eUpgrades
• Super Elite: Increased from 20 to 30 eUpgrades

Additionally, the airline is implementing higher fees for eUpgrade usage on standard fares: $100 more for North American flights and $150 more for international routes.

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New Milestone Benefits System

Air Canada is introducing a progressive rewards system called “Milestone Benefits” that provides perks throughout the qualification year rather than only at status achievement.

How Milestones Work

• Benefits unlock every 10,000 SQCs earned (up to 200,000 SQCs)
• Each milestone provides automatic eUpgrade credits plus choice-based benefits
• Options include Priority Rewards discounts, lounge passes, bonus points, and gift cards
• Higher milestones offer status gifting capabilities and “status banking” for Super Elite members

This system ensures members receive value for their spending even if they don’t achieve their target status level.

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Strategic Approaches to the New System

Credit Card Optimization

Premium Aeroplan cardholders can maximize SQC earning through strategic spending consolidation. The annual 25,000 SQC earning potential through credit card purchases provides a foundation for status qualification when combined with flight activity.

Partner Activity Integration

An additional 25,000 SQCs can be earned annually through Aeroplan partner activities, including hotel stays, car rentals, and participating merchants. The conversion rate is 1 SQC per 5 Aeroplan points earned through partners.

Fare Class Selection

Fare choice becomes critical under the new system:

• Economy Basic: 0 SQCs per dollar spent
• Economy Standard: 2 SQCs per dollar spent
• Economy Flex and above: 4 SQCs per dollar spent

Members serious about status qualification will need to prioritize flexible fares to maximize earning potential.

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Implementation Timeline and Transition Benefits

The changes take effect January 1st, 2026, with several transitional accommodations:

For Current Elite Members

• 2025 status extended through March 31st, 2026
• Rollover Status Qualifying Miles from 2025 converted to SQCs at 5:1 ratio (maximum 40,000 SQCs)

For Future Planning

Premium cardholders beginning in 2027 receive a “Head Start” benefit equal to 10% of the previous year’s SQC earning, providing ongoing qualification advantages.pending even if they don’t achieve their target status level.

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Assessment and Recommendations

System Evaluation

Advantages: The new system offers greater transparency with a single earning metric and provides multiple pathways to elite status through flights, credit card spending, and partner activity.

Drawbacks: The changes significantly disadvantage price-sensitive travelers and effectively eliminate distance-based earning strategies that previously allowed budget-conscious flyers to achieve elite status.

Net Effect: Air Canada has aligned elite status qualification with customer profitability, prioritizing spending over travel frequency or distance.

Suitability Analysis

Consider pursuing Aeroplan status under the new system if you:

• Regularly book flexible or premium fares
• Have substantial annual credit card spending that can be optimized
• Already engage actively with Aeroplan partners
• Travel frequently on business with flexible booking policies

Alternative programs may be more suitable if you:

• Primarily book basic economy or deeply discounted fares
• Prefer not to adjust spending patterns for status optimization
• Focus mainly on long-haul international travel with budget fares
• Want to avoid premium credit card annual fees

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Immediate Action Items

Before December 2025

• Evaluate whether acquiring a premium Aeroplan credit card aligns with your travel goals
• Consider pursuing elite status under the current system as a final opportunity
• Analyze your Air Canada spending patterns to model qualification requirements under the new system

2026 Strategy Implementation

• Avoid Economy Basic fares entirely if pursuing status
• Assess whether fare class upgrades provide acceptable value for SQC earning
• Optimize partner activity to maximize the 25,000 SQC annual allowance

Long-term Considerations

• Maintain flexibility in loyalty program participation
• Monitor competitive responses from other airlines
• Focus on milestone benefits optimization even without achieving full status tiers

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Conclusion

Air Canada’s Aeroplan changes represent a fundamental shift toward revenue-based elite qualification that mirrors trends across the airline industry. While these modifications create challenges for budget-focused travelers, they also establish new opportunities for high-spending customers and strategic credit card users.

Success under the new system requires careful evaluation of your travel patterns, spending capacity, and willingness to adjust booking behavior. For some travelers, the changes may actually simplify the path to elite benefits. For others, exploring alternative loyalty programs may provide better value alignment.

The key to navigating this transition successfully lies in honest assessment of your travel profile and strategic adaptation to the new earning structure, rather than attempting to maintain previous strategies that are no longer viable.

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These Aeroplan changes represent just one example of ongoing evolution in Canadian loyalty programs. Stay informed about program modifications to ensure your travel strategy remains optimized for maximum value.