Aeroplan Devaluation Coming in March 2025?

This week, Aeroplan announced what we consider a major devaluation to its reward program, set to take effect on March 25, 2025. These changes will primarily impact redemptions with several key airline partners, altering how members can use their points for flights.

What Is Changing?

Aeroplan is implementing several adjustments that will significantly impact its redemption structure. Here’s a breakdown of what’s coming:

Dynamic Pricing Expansion: United, Emirates, flydubai, Etihad, and Canadian regional airlines (Canadian North, Calm Air, and PAL Airlines) will move to dynamic pricing. This means that instead of fixed award rates, the number of points required for a flight will fluctuate based on demand, making it harder to predict the cost of a redemption.

Improved Access to Redemptions: Aeroplan claims that in some cases, there will be deeper inventory levels for reward flights, which may help travelers find award seats more easily. However, this does not guarantee better pricing.

Etihad Business Class Availability: A significant positive change is the return of Etihad Business Class award inventory across the system. Previously, access to Etihad awards had been restricted, so this is a welcome change for those looking to redeem miles on one of the world’s top business class products. However, there are no changes to Etihad First Class award availability at this time.

Replacing Reward Ranges with a Starting Amount for the Airlines:

Instead of listing a range of redemption costs, Aeroplan will display only a starting and median amount for each route.
The median redemption amounts will be updated quarterly, based on the previous four quarters’ data, ensuring they reflect actual redemption trends.
Median amounts may not be displayed in cases of low redemption volume, such as for certain international short-haul routes or first-class redemptions where only one carrier offers the option (e.g., Emirates First Class).
Discounted redemption rates for Aeroplan Elite Members and credit cardholders will continue to apply.

The Good

While we feel these changes are largely negative for Aeroplan members, there are a couple of positives:

Increased Availability of Redemption Flights: More award seats may be made available under the new system, though this benefit is counterbalanced by the higher and less predictable redemption rates.

Etihad Business Class Awards Return: One of the better business class products in the world will be accessible again through Aeroplan, allowing members to book premium travel more easily.

The Bad - Aeroplan Devaluation

Make no mistake—this should be viewed as a devaluation. The airlines moving to dynamic pricing currently operate on Aeroplan’s fixed award chart, meaning that members have been able to rely on predictable redemption rates. If you’ve ever searched for Aeroplan redemptions on Air Canada or Emirates, you already know what dynamic pricing means—fluctuating award costs and, in most cases, significantly more points required for flights.

While there may be occasional sweet spots where dynamic pricing results in a lower-than-expected cost, the general trend is clear: it will take more points to book the same flights that were previously available at lower fixed rates. Aeroplan’s dynamic pricing on Air Canada flights has already shown how unpredictable and expensive redemptions can become, and there’s no reason to believe this won’t happen with the newly affected partners.

Aeroplan has marketed the "starting at" pricing as a positive change, but history suggests that actual redemption rates will trend much higher. By only displaying a starting price rather than a range, Aeroplan avoids setting clear expectations for members, making it harder to gauge the true value of a redemption before searching for flights.

Another concern is the lack of transparency in median pricing updates. While updating every quarter sounds like an improvement, it could actually obscure the impact of devaluations by making gradual increases less noticeable. Additionally, the absence of median amounts for low-volume redemptions means that certain premium routes, such as first-class cabins on Emirates, may not provide clear guidance on expected costs.

Surprisingly, many travel bloggers and industry analysts have been lenient on Aeroplan, with few calling this change out for what it potentially is: a major devaluation that reduces the value of Aeroplan points for most members.

What This Means for Aeroplan Members

If you frequently redeem Aeroplan points for travel on United or Etihad, you’ll likely need to spend significantly more points after March 25, 2025. While availability may improve in some cases, the overall cost of redemptions is expected to rise. Here’s what you should do in response:

1. Book Now: If you have upcoming travel plans that involve any of the affected airlines, consider booking before the devaluation takes effect. Locking in a fixed-rate award now can save you thousands of points compared to post-March rates.

2. Monitor Award Availability: Keep an eye on redemption options in the coming months to see how pricing trends evolve. This will help you understand how much worse redemptions will become under dynamic pricing.

3. Leverage Elite Benefits and Credit Card Discounts: If you hold Aeroplan Elite status or an Aeroplan co-branded credit card, you may still be able to find slightly better deals through discounted redemption rates.

4. Consider Alternative Loyalty Programs: If Aeroplan’s devaluation makes it significantly harder to get good value from your points, it may be worth looking into other airline loyalty programs for your travel needs. Programs such as British Airways Avios and Air France/KLM Flying Blue may offer better redemption opportunities depending on your travel preferences.

Conclusion

This is bad news for Aeroplan members. While there are some small positives, such as increased availability and the return of Etihad Business Class awards, the shift to dynamic pricing will make it harder to get good value from your Aeroplan points. If you have existing points, it may be wise to book now before the changes take effect in March 2025.

Ultimately, this change follows a pattern seen in many frequent flyer programs—more complexity, less transparency, and increased costs for members. For those who rely on Aeroplan for premium travel redemptions, these changes serve as a reminder to always stay ahead of loyalty program shifts and redeem points strategically before further devaluations occur.