The News

Air Canada announced today a complete transformation of its Aeroplan loyalty program, effective January 1, 2026. The airline is abandoning its current distance-based model in favor of a revenue-driven system that rewards high spenders over frequent flyers. Members will now earn Status Qualifying Credits (SQC) as the single path to elite status, replacing the current combination of Status Qualifying Miles (SQM), Status Qualifying Segments (SQS), and Status Qualifying Dollars (SQD).

Key changes include:

• Revenue-based point earning: 1-6 points per Canadian dollar spent (based on elite status)
• New qualification metric: Status Qualifying Credits (SQC) replace all current metrics
• Expanded earning opportunities: Credit card spending and partner activity now count toward status
• Milestone rewards: New perks unlocked every 10,000 SQC earned

What's Changing

For Current Aeroplan Members

Starting January 1, 2026, members will earn points based on dollars spent rather than distance flown. Base members earn just 1 Aeroplan point per Canadian dollar on eligible fares, while Super Elite members earn 6 points per dollar. This represents a dramatic shift from the current system where earning rates depend on fare class and distance.

Elite status qualification becomes entirely spend-based through SQC accumulation. Members can earn up to 4 SQC per dollar on Air Canada flights, plus up to 25,000 SQC annually from credit card spending, and another 25,000 SQC from partner activity.

For US-Based Star Alliance Travelers

American travelers who credit flights to Aeroplan for Star Alliance benefits face significant changes. Revenue-based earning means short, expensive flights now generate more rewards than long, cheap flights. This particularly impacts travelers who previously maximized distance-based earning on transcontinental routes with discounted fares.

For those comparing loyalty programs, our comprehensive guide on United MileagePlus vs. Air Canada Aeroplan redemption rates becomes even more crucial as the earning structures diverge significantly.

Background & Context

Air Canada's move mirrors the industry-wide shift toward revenue-based loyalty programs. American Airlines and Delta Air Lines have already transitioned to spend-based elite status models, making Aeroplan the latest major program to prioritize wallet share over flight frequency. Similarly, United Airlines has tightened its Premier status requirements, though it maintains a distance-plus-spending hybrid model.

The timing coincides with post-pandemic travel recovery, where airlines focus on premium revenue over passenger volume. Revenue-based systems typically benefit business travelers and premium cabin passengers while penalizing budget-conscious frequent flyers who previously gamed distance-based earning.

The changes represent the most significant updates to Aeroplan since its relaunch in November 2020. Air Canada positions these modifications as recognizing "most loyal and engaged members" across the broader ecosystem, not just flying activity.

Industry experts note this follows the pattern of North American carriers moving away from traditional frequent flyer models. The revenue focus aligns with Wall Street expectations for loyalty program profitability, particularly as programs become significant revenue generators through credit card partnerships and retail collaborations.

Expert Analysis

Air Canada believes this move is "revenue-neutral for them and that there will be more elite members at each step; however, those members don't fly as much as they do today". This suggests the airline expects to maintain similar benefit costs while expanding the elite member base through non-flying qualification paths.

The new SQC thresholds reveal the program's priorities. Most status levels maintain similar requirements: Aeroplan 25K needs 25K SQC (compared to the current 25K SQM + $3K SQD), 50K requires 50K SQC, and 75K needs 75K SQC. However, Super Elite jumps to 125K SQC from the current 100K SQM + $12K SQD requirement.

The 25% increase in Super Elite requirements suggests Air Canada wants to limit its highest-tier membership while the simplified lower tiers may increase qualification rates through expanded earning opportunities.

What This Means for Travelers

Winners

• Business travelers: High fare spending translates directly to elite status and bonus points
• Premium cabin passengers: Revenue-based earning favors expensive tickets over cheap seats
• Credit card churners: Up to 25,000 SQC annually from card spending provides a new path to status without flying
• Short-haul premium travelers: Expensive regional flights now generate meaningful rewards
• Partner program users: Hotel, car rental, and retail spending contributes to elite status for the first time. Programs like Marriott Bonvoy and other Star Alliance partners now provide qualification credits

Losers

• Budget long-haul travelers: Cheap transcontinental flights lose their distance-based earning advantage
• Basic economy flyers: Basic economy fares don't earn any SQC, eliminating status progression for the most price-sensitive travelers
• Leisure travelers: Vacation travelers typically purchase cheaper fares, reducing their earning potential
• Current Super Elite members: Higher qualification threshold makes status retention more challenging

How to Adapt Your Strategy

If you're pursuing Aeroplan elite status:

1. Focus on fare class over distance: Flex fares and above earn 4 SQC per dollar versus 2 SQC for Standard fares. Upgrading fare class now provides double the qualification benefit.
2. Leverage credit card spending: With 25,000 SQC available annually from card purchases, heavy spenders can achieve 25K status through credit card activity alone. Premium cardholders should maximize this opportunity.
3. Time your travel strategically: Starting in 2027, premium cardholders who requalify receive a 10% SQC bonus based on previous year's earning. This creates a compounding advantage for consistent elite members.

If you currently credit Star Alliance flights to Aeroplan:

1. Recalculate your earning strategy: Compare Aeroplan's new revenue rates against United MileagePlus, particularly for discounted long-haul flights where distance-based programs may now offer better value.
2. Consider program switching: US-based travelers might find better value crediting flights to United, especially with the United Quest Card's current 100K miles + 3,000 PQPs welcome offer providing a faster path to United elite status. Other Star Alliance options like Alaska Airlines maintain distance-based earning that may better suit budget-conscious travelers.

Related Developments

The Aeroplan changes occur amid broader Star Alliance loyalty shifts. United continues tightening its Premier qualification requirements, while Lufthansa Group programs maintain traditional distance-based models. This creates strategic opportunities for travelers willing to split their loyalty based on route-specific value.

Air Canada also recently extended elite status validity to 13 months, providing current members additional time to adapt to the new qualification requirements. This grace period helps ease the transition for 2025 elite members.

Looking Ahead

The 2026 implementation timeline gives current members over a year to adapt their strategies. 2025 elite qualification remains unchanged, using the current SQM/SQS/SQD system. This provides a bridge year for members to test different approaches before the new system takes effect.

Rollover SQM benefits will convert to SQC at a 5:1 ratio in 2026, providing some continuity for current elite members. However, the fundamental shift from distance to revenue rewards will permanently alter program dynamics.

Expect other Star Alliance carriers to monitor Aeroplan's performance under the new model. If successful, additional alliance partners may adopt similar revenue-based systems, further consolidating the industry trend away from traditional frequent flyer programs.

Bottom Line

Air Canada's Aeroplan overhaul represents the loyalty program's most significant change since its 2020 relaunch. The shift to revenue-based earning and Status Qualifying Credits aligns Aeroplan with American and Delta's models, prioritizing spending over flight frequency. While business travelers and premium passengers benefit, budget-conscious frequent flyers face reduced earning potential. Current members have until January 1, 2026, to adapt their strategies before the new system takes effect.

Frequently Asked Questions

Q: Do the changes affect my current Aeroplan elite status? A: No. Current elite status qualification for 2025 remains unchanged. The new SQC system only applies to status earned from activity starting January 1, 2026.

Q: Can I still earn elite status without flying? A: Yes. Credit card spending can contribute up to 25,000 SQC annually, while partner activity adds another 25,000 SQC. Combined, these non-flying sources can achieve 25K status.

Q: How do Basic Economy fares work under the new system? A: Basic Economy fares don't earn any SQC, similar to how they don't earn SQM today. Only Standard fares and above qualify for status credits.

Q: What happens to my current SQM rollover benefits? A: In 2026, Rollover SQM will convert to SQC at a rate of 5 Rollover SQM to 1 SQC. You must be an active premium cardholder by December 15th to receive this conversion.

Q: Should US travelers switch from Aeroplan to United MileagePlus? A: It depends on your travel patterns. Revenue-based earning favors expensive short flights, while distance-based programs reward cheap long flights. Compare earning rates for your typical routes before deciding. Check out our detailed United MileagePlus vs. Air Canada Aeroplan comparison for specific redemption value analysis.

Q: When do the new Milestone Benefits start? A: Milestone Benefits begin at 10,000 SQC, with rewards every 10,000 SQC up to 200K, then every 20,000 SQC thereafter. These provide additional perks beyond traditional elite benefits. Full details are available on Air Canada's official Aeroplan elite page.