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Fly Cash Free – Pay Taxes & Fees With Aeroplan Miles

Aeroplan redeeming for taxes, fees, surchargesAeroplan members can now pay for taxes, fees and surcharges with their miles. A long time source of frustration for Aeroplan members, the new rule provides more opportunities for Aeroplan members to use their miles and fly entirely cash free.

The option now allows Aeroplan to compete with other notable travel loyalty programs that have wooed customers with the flexibility to pay for flights with points.

The Process

The redemption process provides members with the option to pay for taxes, fees and surcharges with cash or by redeeming Aeroplan miles. It’s pretty simple:

  1. Select your flight
  2. Select the option to pay for your taxes, fees & surcharges with cash or with miles
  3. Book your ticket

redeem aeroplan miles for taxes, fees and surcharges

 

RedemptionValue

The value per Aeroplan mile when redeeming for taxes, fees and surcharges is not that impressive when compared to redeeming for airfare. From the example above you can see that one Aeroplan Mile is valued at $.0085, a little less than 1 cent ($70.05/8,241=.0085). We typically value an Aeroplan mile at $.0127 and higher, although ranges obviously vary depening on when and how one redeems. So you’re getting about 33% less value for your miles than when you redeem for airfare alone.

Our Take

For those with more Aeroplan miles than they know what to do with, this is a great opportunity to get some additional value.

For those who have some left-over miles they want to get rid of, this may also be a good opportunity. For years, the only way to get rid of 10,500 miles or so was to buy gift cards. But with redemption values as low as $.0071, a lot of value was left on the table. Now, you can use as many of your left-over points as you can to pay for your taxes and fees, and get a lit more value than before.

If you regularly redeem your miles for flights, but don’t have tons of miles, you’re better off using your Aeroplan miles to redeem for flights. Use cash to pay cash for the taxes and fees. There’s no sense in redeeming for taxes and fees and getting $.0085 per mile, when you can get $.00127 and higher when redeeming for flights.

It’s nice to see Aeroplan adding a little more flexibility to the program. While the value is not as high as we would have liked, all in all, it’s definitely a net positive.

Don’t forget to take advantage of the huge Aeroplan welcome bonuses available for new credit card sign-ups. You can get a return ticket to anywhere in North America free (25,000 miles), with no annual fee in the first year. With record bonuses available, and more flexibility to pay for taxes and fees with miles, there’s no better time to get your free Aeroplan welcome bonus than now!

If Aeroplan’s not your thing, compare Canada’s best credit cards here.

 

 

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