BMO purchases Air Miles Rewards program

Air Miles, one of Canada’s biggest and oldest loyalty programs with over 10 million active users, has made it through a bad patch of turbulence and now has a new owner in BMO.

The trouble started in June 2022 when the parent company of grocery retailers Sobeys and Safeway announced it would be dropping Air Miles in favour of Scotiabank’s Scene+ program. Air Miles’ stock quickly lost half its value, and its parent company, Loyalty Ventures Inc., filed for bankruptcy this March. With this, many consumers were urged to cash out their Air Miles in fear of losing their value. However, that same day, BMO swooped in to rescue the beleaguered program at a cost of $160 million USD.

Since then, the deal has received court approval and BMO has finalized its takeover of the loyalty program it helped start back in 1992. 

What does this mean for your Air Miles Reward Miles and the future of the Air Miles program in Canada? Let’s take a look.

How does the Air Miles program work?

Air Miles is a customer loyalty program that rewards you for shopping at specific retailers. You can earn Air Miles Reward Miles, and then redeem them for travel, merchandise or store credit.

Air Miles Reward Miles are divided into two categories: Cash Miles can be redeemed like cash when shopping in-stores or online at a fixed value of 10.53¢ per Mile, whereas Dream Miles can be redeemed for travel and merchandise at an average value of 12.1¢ per Mile.

You can choose to earn Cash Miles, Dream Miles, or a combination of both. For Gold and Onyx Miles members, the two can be converted between each other. However, for Blue Miles members, once Miles are earned, they can’t be converted to the other kind.

Updates to the Air Miles program

New updates transitions Air Miles into a more general rewards program rather than being solely focused on travel. Previously, members could earn Miles by purchasing goods at grocery stores and scanning their receipts. Now, this benefit has expanded to include liquor stores and wholesale stores like Costco. Starting in September, even more categories will be introduced.

With more ways to redeem Miles, card-linked offers allow collectors to earn bonus Miles at partner retailers when linking a Canadian-issued Mastercard to their Air Miles account. For example, collectors can earn 25 bonus Miles when spending $300 at Porter Airlines. The availability of e-vouchers for redemption has expanded to include more retailers, such as Amazon, Sporting Life, and TJX brands (Winners, HomeSense, Marshalls).

In response to rising gas prices, BMO Air Miles credit or debit cardholders can now save $0.07 per litre on Shell V-Power premium fuel and $0.02 per litre on other Shell fuels, providing more value. While Air Miles rewards were previously limited to grocery stores, BMO Air Miles credit cardholders can now earn double Miles on purchases at wholesale clubs and liquor retailers in Canada.

Additionally, Air Miles has announced that members can now convert Cash Miles (used for retailer eVouchers and in-store discounts) into Dream Miles (used for merchandise and travel rewards), and vice versa. This feature is particularly beneficial for Onyx and Gold collectors; Onyx collectors can now make unlimited transfers, and Gold collectors can transfer up to 1,000 Miles each year.

Where can you currently earn Air Miles? 

Air Miles has lost some of its biggest partners in recent years. Sobeys, Safeway, Lowes, Staples and Rexall are some of the biggest brands to have parted ways with the program. But there are still plenty of ways to earn Air Miles Reward Miles in 2024.

Currently, you can earn Air Miles in-store at a variety of retailers including major brands like Shell, Goodyear, Global Pet Foods, Costco, Sephora and Jiffy Lube. Online, you can use airmilesshops.ca to earn Air Miles at Amazon, Walmart and dozens more. You can also earn Air Miles when booking travel with companies including Westjet, Air Canada, Porter and IHG Hotels.

You can also earn bonus Air Miles by linking any Canadian-issued Mastercard credit card to your Air Miles account and taking advantage of limited-time offers.

Finally, you can earn Miles with an Air Miles credit card from BMO. 

With any BMO Air Miles linked credit card, you can earn 3x the Miles for every $12 spent at participating AIR MILES Partners, 2x the Miles for every $12 spent at eligible grocery stores, wholesale clubs, membership-based retailers and alcohol retailers, and 1 Mile for every $12 that you spend with your credit card everywhere else. You can also earn double Miles on purchases at participating grocery stores, wholesale clubs and liquor retailers in Canada. As part of their welcome bonus, you can also earn 3,000 AIR MILES Bonus Miles! That's enough for $310 towards purchases with AIR MILES Cash! Plus, get the $120 annual fee waived for your first anniversary

What happens to my existing American Express Air Miles credit card?

As of April 10, 2023 American Express Air Miles credit cards have been discontinued and are no longer available to new applicants. These credit cards include: 

• American Express Air Miles
• American Express Air Miles Platinum
• American Express Air Miles Reserve
• American Express Air Miles Business
• American Express Air Miles Business Gold

However, it is important to note that existing cardholders will see no change to their earnings and reward features for the time being. It may be worth considering other American Express credit cards.

Where can you currently redeem Air Miles?

You can redeem Air Miles Cash Miles in $10 increments to pay for purchases at Shell locations. You can also use the Air Miles website to claim eVouchers that can be used like cash at a variety of retailers like Starbucks, Indigo, Cineplex, Amazon and more.

You can redeem Air Miles Dream Miles for flights, hotels, car rentals, vacation packages and more using the Air Miles website. Note that you’ll have to use your credit card to pay any departure taxes as well as Air Miles’ booking fee of $20 per airline ticket when booking online.

What other loyalty programs are there in Canada?

Canada has dozens of loyalty programs similar to Air Miles that allow you to earn points and redeem them for travel and other rewards.

For travel, Air Miles’ biggest competitor is Aeroplan. Aeroplan members can earn points by purchasing travel with Air Canada, by linking accounts with other rewards platforms like Starbucks, and with Aeroplan credit cards offered by TD, CIBC and American Express. Aeroplan points can be redeemed for flights, merchandise, gift cards and more at an average value of 2¢ per point.

When it comes to store credit, PC Optimum is Canada's leader. With PC Optimum, you can earn points on purchases at Shoppers Drug Mart, Loblaws grocery stores including Real Canadian Superstore and NoFrills, and Esso gas stations. You can also earn points on everyday spending with the PC Financial Mastercard. Points can be redeemed in $10 increments at a fixed value of 0.1¢ per point.

The bottom line

BMO has been involved with Air Miles since its inception over thirty years ago, and the program appears to be in safe hands with its new owner. With the program’s new ownership, the company looks poised to return it to its former glory.

Also read:

The best BMO credit cards

The best Air Miles credit cards in Canada

The best travel credit cards in 2024

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