Fly Cash Free - Pay Taxes & Fees With Aeroplan Miles

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Last updated on December 1, 2020 Comments: 2

Aeroplan members can now pay for taxes and fees, like airport taxes, with their points (recall that Aeroplan no longer requires members to pay carrier surcharges like fuel surcharges). 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. Or you can also choose to pay taxes and any fees with a mixture of cash and points if you prefer. These options allow 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 and fees with cash or by redeeming Aeroplan points or by using both points and cash. It’s pretty simple:

  1. Select your flight
  2. Select the option to pay for your taxes and fees with cash or with miles—or a combination of the two
  3. Book your ticket

Redemption Value

The value per Aeroplan point when redeeming for taxes and fees may not be that impressive when compared to redeeming for airfare. We typically value an Aeroplan point at $.0109 or 1.09 cents per point per mile and higher, although ranges obviously vary depending on when and how one redeems. So, be sure to double check the value of your points if redeeming them to pay for taxes and fees as it may be a better deal to pay with cash. Also remember that there is a charge of $39 when you fly a partner airline, though you can also pay that additional fee with Aeroplan points.

Our Take

For those with more Aeroplan points than they know what to do with, this is a great opportunity to get some additional value. For those who have some left-over points they want to get rid of, this may also be a good opportunity. For years, the only way to get rid of 10,500 points or so was to buy gift cards. But with redemption values as low as $.0071 for gift cards, 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 little more value than before.

If you regularly redeem your points for flights, but don’t have tons of points, you’re better off redeeming your Aeroplan points for flights. Use cash to pay for the taxes and fees if you notice you are not getting a value of at least $.0109 or 1.09 cents per point. There’s no sense in redeeming points for taxes and fees if you can get more value redeeming them 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. If Aeroplan’s not your thing, compare Canada’s best credit cards here.

Author Bio

Sandra MacGregor
Sandra MacGregor has been writing about finance and travel for nearly a decade. Her work has appeared in a variety of publications like the New York Times, the UK Telegraph, the Washington Post, and the Toronto Star. She spends her free time travelling, and has lived around the globe, including in Paris, South Korea and Cape Town. You can follow her on Twitter at @MacgregorWrites.

Article comments

sberg says:

interesting but doesn’t really tell me how i figure out what the best deal – for 35,143 points i don’t have to pay any fees – for 27,600 points, i have to pay $75.41 in fees – the points difference is the same – that means that my points equal the cash – is that good??? my brain doesn’t follow this stuff so well…

Daniel from GreedyRates says:

Hi sberg,
Now that Aeroplan has moved away from a fixed price redemption model, it does become harder to calculate a reliable set value for an Aeroplan point but your brain is following just fine. 7543 points should work out to roughly $75. You could go either way here and either save your points or cash.