Aeroplan is launching the ability for loyalty customers the ability to purchase miles starting on May 7th. Users will be able to purchase up to 250,000 miles per transaction and 500,000 miles annually. Standard pricing will be 3¢ CAD per mile. To celebrate the launch Aeroplan will be offering the following discounted pricing starting 10AM ET on May 7th and ending May 13th:
- First 10 million Aeroplan miles sold will receive a 115% bonus (1¢ USD per mile)
- Next 100 million Aeroplan miles sold will receive a 90% bonus (1.1¢ USD per mile)
- All miles sold thereafter will receive a 65% bonus (1.3¢ USD per mile)
Purchases made with U.S. based credit cards and a U.S. based billing address are not subject to sales tax. Apparently Aeroplan has had this in the works for some time and it’s not part of raising additional funds due to COVID-19. It’s not clear if this will be sold by Points.com or directly through Aeroplan, if it’s through Points.com there might be a portal play here as well to reduce costs even further. Personally I don’t think purchasing miles at the moment makes sense at all even at 1¢ per point.
Hat tip to OMaaT
Yeah, probably not smartest idea to buy airmiles given that airlines have high chance of bankruptcy.
Dumbest thing I’ve ever read.
Not a bad way to extend miles expiration. I have some that expire in July, so may just buy a few to move the date back.
gotta burn my miles first not buy more. Are they selling for 1 cent canadian or 1 cent US? that’s quite a difference.
1000 base miles results in 2150 miles after the 115% bonus. It costs 30 CAD which is currently about 21.30 USD, so it costs a little less than 1 US cent per mile
What is Aeroplan’s policy for cancellation of future award flight bookings?
Through 5/30 it is free and it has already be extended once so could happen again. Normally there is a redeposit fee depending on your status and the like (Google for details).
How useful or useless are these miles?
If you have to ask you shouldn’t be buying them.
I’ve redeemed probably around half a million Aeroplan miles over the years, mostly for business class to and from Europe. I’ve gotten a decent amount of utility out of them. But I wouldn’t buy them speculatively at any time, let alone now when the program is due to be reabsorbed by Air Canada and will certainly be devalued.
I’ve already got 58,000 miles stranded there from a cancelled itinerary that I’m not confident I’ll be able to use without a top up, so I’ll definitely be passing on this sale.
So, it could be as little as only 40 people get that $1 cent discount…
Still not bad for other discount levels.
Just what I need … more miles. I *Have*Miles.
They closed my account with no reason or warning. When i called their number the wait was over 1 hour. Is AC REPUBLICAN of airline industry ? Always there to SCREW people !!
Please, no politics here.
As already mentioned the risk here is the revamp of Aeroplan at some point this year. Also be advised that Aeroplan can charge fairly signification fuel surcharges on some carriers so make sure to account for that in your value. In a normal situation if you had an immediate use I’d say go for it. In normal times you could book a redemption fairly quickly (assuming timing worked for you) before the potential devaluation hits and be confident you could fly it. But today we have no idea when and where we will be able to travel internationally in the next 12-24 months and thus you have a high risk of cancellation and having to re-deposit your miles and use them under whatever rules then exist.
Personally I am already sitting on too many miles with airlines due to multiple cancelled award reservations and I’ll pass.
Not to fail to mention that the CA DOT is basically in the airlines pockets – siding with with them in a consumer unfriendedly ruling on cancelled flights and refunds.
Very fact they’re offering such an atypically great deal probably makes it more likely these are going to be devalued
PSA:
AEROPLAN PROGRAM REVAMP Q2 2020
Matthew at LLF blog. Points out this info
“Furthermore, we are expecting the launch of the new Aeroplan program this summer. Perhaps that will change now (the spokesperson declined to speculate), but I have to imagine that some of the sweet spots on the award chart will disappear.”
While AC can offer great value for premium cabin awards.
I would be in if only I could find Biz Award space on UA to AU/NZ. Yet even in COVID-19 awards space down under is almost non-existent.
And who knows if AU/NZ will even be open in the next 12-18 months. I personally wouldn’t bet on it and that is the crux of the problem here. Potential devaluation in near future and no guarantee if you snag the award you’ll be able to fly it.