Unveiling the new Air Miles: Collectors have a reason to be excited again

When Air Miles parent company Loyalty Ventures filed for bankruptcy protection in March of 2023, many people – including myself – advised consumers to cash out their miles for anything of value while they still could. Then, a day later, members were thrown a lifeline when BMO agreed to acquire the program.

After many tweaks and changes, Air Miles has been relaunched with the tag line “Collect more moments.” While loyalty-program enthusiasts may not have been ready to switch their allegiances to a competitor, the nearly 10 million active Air Miles collectors should be relieved about this rebirth.

“We’re excited to be shifting our focus to emphasize redemptions with program enhancements, whether through frequent promotions, greater flexibility in earning, and more …,” said Shawn Stewart, the president of Air Miles in an exclusive interview with The Globe and Mail.

Whether you’ve been collecting Air Miles for decades or are new to the program, here’s what you need to know about the changes.

Miles transfers

One of the most significant pain points of the old Air Miles plan was you couldn’t transfer your Dream Miles and Cash Miles to each other once earned. Cash Miles are used for eVouchers and instant savings at some retailers – sort of like cash back. Dream Miles allowed you to redeem for anything else – including flights, vacation packages and merchandise. The type of miles you earned were set within your account. However, under the new system, that has been addressed – sort of.

Points collectors with Gold and Onyx status can now convert Dream Miles to Cash Miles and vice versa. Onyx members get unlimited transfers. However, Gold members are capped at 1,000 miles a year, and Blue members cannot transfer their miles at all.

In an ideal world, Air Miles would have eliminated the dual currency or allowed unlimited transfers for everyone so you can use your points on the things you want. On the positive, getting status is easy: The no-fee Air Miles Mastercards give you Gold by default, and any Air Miles credit card with an annual fee provides members with Onyx status.

More ways to earn miles

Part of Air Miles’s demise was owing to its lack of partners. In recent years, major brands such as Metro, Sobeys, Staples, LCBO and Rexall have left the program. Fortunately, the relaunch has addressed this problem.

Instead of relying on a single grocery chain to provide bonus miles, consumer Air Miles credit cards now earn two times the miles at any eligible grocery store, liquor stores and wholesale stores – including Costco. Air Miles credit cardholders can now earn additional miles at any grocery store that accepts Mastercard.

Another way to earn more miles is through receipt scanning. When you purchase specific items – such as bacon, packaged goods and fruit – and scan your receipt using the app, you’ll earn extra miles. Additionally, card-linked offers allow you to earn bonus miles at merchants including Porter, Turo, Sephora and Instacart. Air Miles Mastercard holders are automatically linked, but you can manually add any Canadian-issued Mastercard.

The existing partnership that Air Miles has with Shell gas stations is one of the best deals from a gas loyalty program, as BMO Air Miles credit cardholders get savings of 7 cents per litre on Shell’s premium fuel and 2 cents on all other gas.

Additional redemption options

The redemption rates of Air Miles haven’t changed. You can still redeem 95 Cash Miles for a $10 eVoucher. However, they have expanded their merchant partners, so you can now get eVouchers at stores such as Starbucks, Amazon, Costco, Cineplex, Pizza Pizza, among others.

Dream Miles now has a wider range of redemption options, including more flights and merchandise. Unlike other travel loyalty programs, Air Miles doesn’t significantly devalue their rewards when consumers choose non-travel redemptions. So whether you’re redeeming your miles for a toaster, eVoucher or flight, the value of your miles will remain relatively similar. This will appeal to people that aren’t interested in trying to maximize value by using their points for travel and just want to be able to redeem their miles for things they want.

A surprising recovery

Like many other loyalty programs, Air Miles wants its members to be fully engaged. By building card-linked offers, receipt scanning, and personalized offers into the app, consumers can find more ways to earn miles and track their progress.

Those looking for lower-cost aspirational travel, such as business-class flights on specific airlines or overwater bungalows in the Maldives, won’t be impressed by the changes from Air Miles. And despite the increased earning rate on Air Miles credit cards, some other cards offer higher multipliers and better benefits.

While these are valid concerns, it appears Air Miles is no longer a loyalty program focused on travel. It’s more of a general-rewards program that wants its members to redeem their miles for other goods and services. Dream Miles now has a wider range of redemption options, including more flights and merchandise.

Barry Choi is a personal finance and travel expert at moneywehave.com. He was previously affiliated with Air Miles but currently has no relationship.