Costco Air Canada Gift Cards: Save Money On Your Next Air Canada Flight

If you’re going to fly Air Canada on a cash fare – and let’s be real, most Canadians are going to fly Air Canada at some point – there’s a simple way to knock 10% off the price: buy discounted gift cards from Costco. The savings are real, but Air Canada, being Air Canada, the process of actually using them comes with more restrictions than you might expect. 

Here is how you can benefit from a solid discount on Air Canada gift cards purchased from Costco, if your travel situation allows.

Costco Sells Air Canada Gift Cards at a 10% Discount

Costco sells Air Canada $500 e-gift cards for $449.99, or fifty bucks off per gift card. You can pick them up on Costco.ca, though you’ll need a Costco membership to be able to purchase these gift cards.

The e-gift cards are delivered via email, typically within 24 hours of purchase. You’re limited to four transactions of one card per membership every 14 days, and the purchase is non-refundable.

If you’re booking a cash fare anyway, this can be a solid deal – with some notable caveats we’re going to get into. On a $1,000 round-trip ticket purchase, that’s $100 back in your pocket before credit card rewards. For families booking multiple tickets, the savings can stack up quickly, assuming you can navigate Air Canada’s convoluted gift card redemption rules.

How to Redeem an Air Canada Gift Card

Redeeming an Air Canada gift card is simple enough in theory. Here’s how it works on aircanada.com – this only works on the desktop site and will not work on the Air Canada app:

1. Search for and select your flights as usual.
2. Proceed through seat selection and passenger details to the payment page.
3. Enter your e-gift card number and security code (PIN) as a payment method.
4. Pay any remaining balance with a credit card or second payment method (and yes, your other payment method HAS to cover the entire remainder of the cash fare – told you it was obtuse!)

You can also redeem gift cards by calling Air Canada Reservations at 1-888-247-2262.

Air Canada Gift Card Restrictions To Be Aware Of

Air Canada gift cards can be applied toward flights (including applicable taxes, fees, and surcharges), seat selection, change fees, and Air Canada Vacations flight-inclusive packages. They never expire, retain any unused balance, and are fully transferable. So far, so good.

Now for the less fun part. Air Canada caps you at two payment methods per online booking, and if you’re using two gift cards, their combined value must fully cover the cost of the ticket. 

You cannot use two gift cards and a credit card – it’s either two gift cards (or travel credits) that cover the fare in full, or one gift card plus one other payment method. This means your savings are effectively capped at $100 per booking online (two $500 cards at a $50 discount each), and only if the total cost of your fare is exactly $1,000 or less.

If your fare exceeds the value of a single gift card, you’ll need to use one gift card and pay the rest with a credit card. On a $1,500 international fare, you’d apply one $500 gift card and charge the remaining $1,000 to your card. A second gift card won’t help because the two-payment-method limit means the gift cards would need to cover the entire fare on their own.

By phone, Air Canada allows up to three gift cards, but this is sort of pointless when one considers the call center fee is likely in the region of $30 (the same as making Aeroplan bookings on the phone). 

There are a few more restrictions to be aware of. E-gift cards cannot be redeemed at airport counters, through the Air Canada mobile app, through self-service check-in, or for onboard purchases. You also cannot combine the value of multiple gift cards onto a single card. When purchasing a seat or travel option for an existing reservation, only one form of payment is accepted.

Frankly, Air Canada knows what it’s doing. They’re making gift cards available and making them as hard as possible to redeem. Not being able to use them on the app feels spiteful.

On the insurance front, paying for a cash fare primarily with gift cards means you’ll likely lose your credit card’s travel insurance coverage, as most cards require the full fare to be charged.

Co-branded Aeroplan credit cards like the TD Aeroplan Visa Infinite and the CIBC Aeroplan Visa Infinite do cover Aeroplan award bookings, so long as taxes and fees are paid with the card, but for cash fares with gift cards, check your policy. If you don’t hold a co-brand, the National Bank World Elite Mastercard only requires a partial payment for coverage to kick in.

Best Credit Cards to Pair With Your Air Canada Flight Booking

If you’re flying Air Canada, you should be earning Aeroplan points on the purchase. The aforementioned TD and CIBC Aeroplan Visa Infinite cards are the natural starting points – both earn 1.5 Aeroplan points per dollar on Air Canada purchases, come with a free first checked bag for the cardholder and up to eight guests on the same itinerary, and offer a $100 NEXUS membership credit.

But if you want to maximize your earn rate and unlock the full suite of Air Canada perks, the American Express Aeroplan Reserve card is the card to beat. It earns 3 Aeroplan points per dollar on Air Canada and Air Canada Vacations purchases – double the rate of the Visa Infinite cards – plus 2x on dining and food delivery.

American Express® Aeroplan®* Reserve Card

Apply Now Learn More Terms & Conditions apply

American Express® Aeroplan®* Reserve Card

The American Express® Aeroplan®* Reserve card offers Air Canada benefits including Priority Airport Services, Eligible free first checked bags, and access to Maple Leaf Lounges™* across North America.

See our American Express Aeroplan Reserve Card Review for an in-depth review of this card.

OFFER
85,000 Aeroplan points

MINSPEND
$10,000

EST. VALUE
$1,785+

ANNUAL FEE
$599

FOREX FEES
Yes

EXPIRY
–

On top of elevated earn rates, you get Maple Leaf Lounge access, priority benefits on Air Canada flights, and one of the strongest travel insurance packages available on a Canadian credit card. I wrote about how you can improve your entire Air Canada flight experience with one credit card, and the Aeroplan Reserve is the card that came out on top.

Conclusion

Buying Air Canada gift cards from Costco can be a decent way to save up to $100, but it’s difficult to scale, especially when you consider phone booking fees. Still, it’s a decent value, particularly for shorter-haul cash jaunts across Canada. The sweet spot is on flights costing just over $500, so you can save $50 and dip into insurance coverage via your co-branded credit card.