Which Aeroplan Points + Cash Redemption Option is Best?

Air Canada Aeroplan is the premier frequent flyer program for Canadians who want to save on flights not only in Canada, but worldwide. Between premium Aeroplan credit cards, priority benefits on Air Canada flights, and some of the best business and first class redemptions, Canadians who want to benefit from miles and points will need to dig into the Aeroplan program at one point or another.

Regardless of how involved you are in the program, whenever you make a flight redemption using Aeroplan points, you will need to choose between one of four options that offer different combinations of Aeroplan Points + Cash to pay for your flight. But which option is the best value for your Aeroplan points?

Let’s take a look at the options available via Aeroplan Points + Cash redemptions and explore which option is best for your next flight redemption.

What is the Aeroplan Points + Cash Redemption Option?

The Aeroplan Points + Cash redemption option is available to all Air Canada Aeroplan members who are redeeming their Aeroplan points for flights. This feature is always presented whether the member is booking flights on Air Canada or on an award flight with a partner airline.

Once the member selects their desired flight, on the payment screen, they will be presented with the flight itinerary summary and the four Aeroplan Points + Cash redemption options. These options provide members with the opportunity to either use more or fewer Aeroplan points, and more or less cash to make their booking.

But are all of these options made equal and worth considering? To better understand them, let’s explore each of the four Aeroplan Points + Cash redemption options with a bit more detail.

The Four Aeroplan Points + Cash Options

As mentioned, once you select the flight you want to book with Aeroplan points, members are presented with four Aeroplan points plus cash redemption options on the payment screen:

The Aeroplan points, taxes, and fees costs will vary with each booking depending on the airline you are booking, your routing, and can be impacted by other factors. In the above screenshot, I am making a one-way ANA business class redemption from Vancouver to Tokyo Haneda, which has a base redemption price of 55,000 Aeroplan points and $99.67 in taxes and fees.

However, while the Aeroplan points cost and cash payment required will shift, the underlying criteria for each option are the same regardless of the booking you are making, so let’s explore those criteria.

To simplify things, we will name each option from left to right: 60% Aeroplan points, 80% Aeroplan points, 100% Aeroplan points, and Aeroplan points only. With this in mind, let’s go through each selectable option in the screenshot above to explore the value and total costs that should be considered.

The 60% Aeroplan points option charges 22,000 Aeroplan points less than the 100% Aeroplan points option, but at an additional cash cost of $418. Through a roundabout way, this points + cash option purchases Aeroplan points at a cost of 1.9 cents per point to make the redemption possible.

The 80% Aeroplan points option charges 11,000 Aeroplan points less than the 100% Aeroplan points option, but at an additional cash cost of $209. Through a roundabout way, this points + cash option also purchases Aeroplan points at a cost of 1.9 cents per point to make the redemption possible.

The 100% Aeroplan points option is the default redemption pricing, as it charges the stated cost of Aeroplan points plus any applicable taxes and fees to be paid via cash.

The Aeroplan points only option is the most expensive Aeroplan points option, but it has zero cash cost associated with the redemption. This option charges an additional 9,967 Aeroplan points to cover the $99.67 in taxes and fees, which means it values the additional Aeroplan points at a rate of 1 cent per point.

The Best Aeroplan Points + Cash Redemption Option

Typical wisdom for many years has always been to choose the third option, the 100% Aeroplan points option, as it is the best value combination of Aeroplan Points and cash to pay for taxes and fees. 

From a pure value perspective, I still agree with this approach as it maximizes the value you receive for your Aeroplan points while still having the lowest cash expense (which can still be significant depending on the taxes, fees, and surcharges that are passed onto your booking).

I don’t mind paying a small sum in taxes and fees, and consider it simply part of the real out-of-pocket costs of booking award travel. After all, I’m still receiving outsized value with many of the business class redemptions I’ve made with Aeroplan points.

That being said, I do think the best option can be situational based on your Aeroplan points balance, travel needs, and points-earning capacity. 

For example, if you are flush with millions of Aeroplan points from business spending and there is no way you can reasonably use all of them, there is no shame in making flight bookings using the Aeroplan points only option to save a few dollars. 

That being said, I do want to be clear that using the Aeroplan points only option results in terrible value for your points in a normal situation for the average member. The reason is that redeeming Aeroplan points for only 1 cent per point towards any taxes and fees is far below the value you can expect to receive from your points normally. 

However, if your situation is abnormal, I think there is no shame in making a redemption like this since the goal of miles and points is to earn them and burn them. Don’t sit on a pile of endlessly growing points without a purpose for them. Hell, I even have some friends who have stacks of Aeroplan points who redeem them for hotel stays via the Aeroplan HotelSavers program; as always, make the redemption that makes the most sense for you.

Similarly, if you are short Aeroplan points for your desired redemption, selecting one of the lower Aeroplan Points + Cash options isn’t a terrible idea, provided you are ok with effectively purchasing the additional Aeroplan points at a rate of 1.9 to 2 cents per point. Especially if the alternative is not taking the vacation or making the redemption.

Conclusion

While not all of the options are made equal, I think it is fantastic that members can redeem more or fewer Aeroplan points to customize the redemption to fit their needs. 

While conventional wisdom still recommends that members who want the most value should utilize the 100% Aeroplan points option while paying taxes and fees using cash, personal situations and points-earning capabilities can shift which redemption option is best for each member’s individual redemption needs.

Frequently Asked Questions