Aeroplan Valued at $10 Billion as Air Canada Sells 25% Stake for $2.5 Billion

August 12, 2026 Team Contributor

MONTREAL — Aeroplan has put a C$10 billion price tag on one of the most familiar names in Canadian travel.

Air Canada is selling a 25% minority stake in Aeroplan for C$2.5 billion. The buyer is an investment group led by Blackstone and La Caisse. PSP Investments and British Columbia Investment Management Corporation (BCI) are also participating. No wonder, there’s bouyant sentiments pushing up Air Canada’s shares.

The deal values Aeroplan at C$10 billion, but Air Canada retains the charge. It will still have a 75% ownership stake. This means it will continue to control Aeroplan’s strategy, operations and day-to-day management. The transaction is expected to close on August 17, 2026.

Aeroplan has more than 10 million active members worldwide. To them and many others, the most important part of Tuesday’s announcement is this: Air Canada says the transaction will bring no changes for members, partners or employees.

But behind the headline is a significant financial move for Canada’s largest airline, and it says a lot about how important loyalty programs have become to the airline business.

“This investment highlights Aeroplan as a differentiated loyalty platform and showcases the exceptional value created since its acquisition. The transaction strengthens Air Canada’s financial position by unlocking value from Aeroplan while retaining full operational control. It provides additional financial flexibility, and supports our pursuit of an investment grade rating, as we execute our long-term strategic plan, for the benefit of our customers, employees and investors,” said John Di Bert, Executive Vice President and Chief Financial Officer at Air Canada.

Why Air Canada is selling part of Aeroplan

Here’s the deal. Air Canada plans to use the bulk of the gains to address an upcoming US$1.2 billion, or approximately C$1.7 billion, bond maturity.

Most of the remaining proceeds will be used to accelerate share repurchases. This is in line with the airline’s long-term strategic plan. Air Canada says the transaction will strengthen its balance sheet by reducing gross indebtedness.

The timing is notable because the Aeroplan announcement coincides with Air Canada’s second-quarter financial results.

The airline reported record second-quarter operating revenue of C$6.266 billion, but also recorded a C$178 million net loss. Fuel expense was up 49% year over year, while Air Canada reinstated its 2026 adjusted EBITDA guidance at C$2.9 billion to C$3.2 billion, below its previous range of C$3.35 billion to C$3.75 billion.

Air Canada reported C$12.794 billion in long-term debt and lease liabilities at the end of June.

Against that backdrop, the Aeroplan transaction provides the airline with access to substantial capital while allowing it to retain control of the loyalty program.

“Air Canada has established Aeroplan as one of Canada’s leading loyalty programs, with strategic partnerships across travel, financial, and commercial sectors. We are pleased to welcome Blackstone, La Caisse and other leading Canadian institutions as minority investors in Aeroplan as we continue to strengthen and expand Aeroplan’s global appeal. Under the new partnership, Air Canada retains full control of the program, meaning partners, members, and employees can all expect full continuity of the program as they do today. Air Canada is committed to remaining the majority owner of Aeroplan, ensuring continued control of the program while positioning it for future growth and value creation,” said Craig Landry, Executive Vice President & Chief Innovation Officer at Air Canada, and President of Aeroplan.

Aeroplan has grown far beyond Air Canada flights

The C$10 billion Aeroplan valuation is significant in part because Aeroplan is no longer simply a frequent-flyer program attached to Air Canada tickets. It has outgrown the space.

10 million active members is huge. They can earn or redeem points with more than 50 airlines serving more than 1,300 destinations. Aeroplan also offers redemptions through hotel and other travel partners, as well as merchandise and other rewards.

For Canadian travellers, that means Aeroplan can follow them well beyond an Air Canada itinerary. Points earned through eligible travel and everyday spending can be used across a much broader travel network.

That wider ecosystem has continued to mature in 2026. Aeroplan has added partnerships including Hertz and World of Hyatt, while continuing to build its airline partner network.

The program also has its fair share of accolades. Aeroplan bagged three top honours at the 2026 Freddie Awards, including Program of the Year, Best Redemption Ability and Best Promotion.

Aeroplan has already gone through major changes in 2026

Air Canada made some major changes in it’s loyalty program earlier.

Beginning January 1, 2026, members began earning Aeroplan points on Air Canada flights based on spending rather than distance flown. It also introduced Status Qualifying Credits (SQC) as part of its new approach to Aeroplan Elite Status qualification.

These were significant changes for frequent flyers.

The new ownership arrangement does not announce any further changes to those rules.

What the deal means for Aeroplan members

For now, the answer is straightforward: Aeroplan continues as it does today.

Air Canada says members, partners and employees can expect continuity following the investment. The investor group will have customary minority rights and will participate in distributions from Aeroplan when declared under the agreed policy.

The airline will have the right to repurchase the investors’ interest between the fifth and eighth anniversaries of the transaction’s settlement, subject to the terms of the agreement.

So this is not a sale of Aeroplan to Blackstone or La Caisse. At best, it is a strategic minority investment.

Air Canada is also planning an $800 Million share buyback

There’s more to it. The Aeroplan transaction is tied to another major financial move.

Air Canada intends to launch a substantial issuer bid of up to C$800 million to buy back and cancel its Class A variable voting and Class B voting shares.

The airline expects to determine the terms and pricing after the planned Aeroplan transaction closes on August 17. The offer is expected to launch afterward, with completion targeted for September 2026.

In the final analysis, the Aeroplan investment should be seen beyond the loyalty program. It provides capital to address a large upcoming debt maturity, supports the airline’s balance-sheet objectives, and funds planned share repurchases.

For travellers, however, the immediate story is simpler.

Aeroplan remains under Air Canada’s control; the large pool of active members continue to enjoy access to a global network of airline and travel partners.

The bigger significance is financial: a loyalty program that many Canadians know primarily as the place where they collect points for their next flight has now been assigned a C$10 billion valuation.

And Air Canada is choosing to monetize only part of that value, while keeping its hand firmly on the wheel.

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