Air Canada’s Aeroplan Credit Card is raising its annual fee from $95 to $195 while changing reward rates, bonus categories, and longtime benefits.
The $100 increase more than doubles the cost of holding the card. Customers must now decide whether its new features can offset both the higher price and the loss of familiar perks.
A Major Jump in Annual Cost
The annual fee increase is the clearest change. At $195, the card will cost holders about $16.25 a month, compared with roughly $7.92 under the former fee.
That creates a simple break-even test. Cardholders need to receive at least $100 in added yearly value just to cover the increase. They must gain $195 in total value to offset the full fee.
The card is “leaving some longtime perks in the wind” while adding new features, updated reward rates, and revised categories.
The exact result will vary by customer. Frequent Air Canada travelers may use airline benefits often enough to justify the price. Occasional travelers could find the new calculation less friendly.
New Rewards Meet Lost Benefits
The revised card adds features and updates how customers earn rewards. However, the available information does not specify each new rate, category, or discontinued perk.
Those details matter because reward categories can look generous while offering limited practical value. A higher earning rate helps only if it applies to purchases a cardholder already makes.
Customers assessing the update should compare several items:
- The value of rewards earned through the revised categories
- The yearly value of any new travel features
- The cost of benefits being removed
- Restrictions, spending limits, and redemption rules
Rewards should also be valued conservatively. Airline points can be worth more on some trips than others, and seat availability can affect their practical use. A large points balance is less useful if preferred flights are difficult to book.
Airline Cards Seek Higher-Spending Customers
The Aeroplan changes reflect a common credit card strategy. Issuers add travel benefits or bonus categories, then charge more for access. The approach shifts a product from a lower-cost card toward the premium travel market.
That model can work well for loyal flyers. They may combine reward earnings with airline-related benefits and gain more than the fee costs. Yet it can weaken the card’s appeal among customers who valued a simpler $95 product.
The removal of longtime perks may also create friction. Benefits that appear modest on paper can shape how customers use a card. Replacing them with features aimed at different spending habits does not guarantee equal value.
What Cardholders Should Review
Existing customers should check when the new fee applies and whether renewal terms differ from terms for new applicants. They should also review the complete benefits guide before paying another annual fee.
A practical audit uses the previous 12 months of spending and travel. Customers can estimate rewards under the new categories, subtract the $195 fee, and compare the result with competing cards or no-fee options.
The Aeroplan card’s redesign offers more ways to earn and use benefits, but it also sets a much higher financial hurdle. The key question is not whether the card has more features. It is whether each customer will use them enough to make the extra $100 worthwhile.
