What the Air Canada Credit Card is and who it's for
The Air Canada credit card is a co-branded card issued by TD Bank that earns points on purchases, which you can redeem for Air Canada flights, seat upgrades, and other travel expenses. You do not have to be an Air Canada frequent flyer member to hold the card, though most cardholders are.
The card comes in two main versions: the standard Air Canada card and a premium tier (currently called the Air Canada Prestige card). The standard version targets people who fly Air Canada a few times a year and want to accumulate points without paying an annual fee. The premium version is designed for frequent travellers who value lounge access, travel insurance, and higher point earning rates enough to justify the annual fee.
This card makes sense if you already book Air Canada flights regularly and want to earn points on those bookings plus everyday spending. It is less useful if you rarely fly Air Canada, fly multiple carriers, or prefer cash back over points.
Key Takeaways
- Air Canada credit cards earn points on purchases that you redeem for flights and seat upgrades, but the point value depends on how you use them and which redemption option you choose.
- The standard card has no annual fee; the premium Prestige card charges an annual fee but includes lounge access, travel insurance, and higher earning rates on Air Canada purchases.
- Points earned on the card do not automatically add to your Air Canada frequent flyer account — you must link the card to your account or manually transfer points.
- Redemption rates vary widely: a point might be worth 1 cent on a flight booked through Air Canada's website, but less than 1 cent if you redeem for other travel partners or gift cards.
How points earning and redemption work
The standard Air Canada card typically earns 1 point per dollar spent on most purchases, with bonus points (often 2 or 3 points per dollar) on Air Canada flights, Air Canada hotels, and certain partner merchants. The Prestige card usually earns higher rates — often 2 points per dollar on Air Canada purchases and 1.5 points per dollar on other travel and dining.
Points are held in your Air Canada Aeroplan account once you link the card to it. You redeem them by logging into Aeroplan, searching for a flight, and paying the point cost instead of cash. A short domestic flight might cost 12,500 points; a long international flight might cost 50,000 or more. The actual point value depends on the route, airline partner, and how far in advance you book.
One critical detail: points do not expire as long as your account remains active, but your account can close if you have no activity for 12 months. Linking the credit card to your Aeroplan account counts as activity, so regular cardholders rarely face this risk.
Annual fees and what they cover
The standard Air Canada card has no annual fee. You pay nothing to hold it, though you may pay interest on a balance if you do not pay in full each month.
The Prestige card charges an annual fee — the amount varies by year and by promotion, but typically ranges from $139 to $199 CAD. In exchange, you receive lounge access (usually Priority Pass or Air Canada Maple Leaf Lounge access), travel insurance that covers trip cancellation and baggage delays, and higher earning rates on Air Canada and travel purchases.
Whether the premium card pays for itself depends on how often you use the lounge and whether you would buy the travel insurance separately. A single lounge visit can cost $30 to $50 if purchased on its own, so frequent travellers may recoup the fee quickly. Occasional flyers usually come out ahead with the no-fee standard card.
Interest rates, foreign exchange, and other costs
Like all credit cards, the Air Canada card charges interest on balances you do not pay in full by the due date. The interest rate (called the purchase APR) varies based on your credit score and current market rates, but typically ranges from 19% to 22% for most cardholders. This rate applies to any unpaid balance, whether you earned points on that purchase or not.
If you use the card outside Canada, you pay a foreign exchange fee — usually 2% to 2.5% of the purchase amount in addition to the exchange rate conversion. This means a $100 USD purchase costs you roughly $135 to $140 CAD, not just the straight currency conversion. Some premium cards waive this fee, but the standard Air Canada card does not.
Cash advances (withdrawing money from an ATM using the card) carry a separate fee, usually 3% to 4% of the amount withdrawn, plus interest that starts accruing when ready. Avoid cash advances with this card — they are expensive.
How to link the card to your Air Canada account
When you are approved for the Air Canada card, TD Bank sends you the physical card and login details. You then log into your Air Canada Aeroplan account (or create one if you do not have one) and link the credit card to it. This step is not automatic — if you do not link the card, points will not post to your Aeroplan account.
To link the card, go to the Aeroplan website, sign in, navigate to your account settings, and select the option to add a payment card. Enter your Air Canada credit card details and confirm. Once linked, points from purchases will appear in your Aeroplan account within 1 to 3 business days.
If you already have an Air Canada frequent flyer account but have not linked this card yet, linking it does not reset your existing points or account history — it straightforward connects future card purchases to that account.
Comparing point value across redemption options
The value of a point varies depending on how you redeem it. Redeeming points for a flight booked directly through Air Canada's website typically gives you the best value — roughly 1 to 1.5 cents per point. Redeeming for a flight on an Air Canada partner airline (such as United or Lufthansa) may give you 0.8 to 1.2 cents per point. Redeeming for a hotel stay, car rental, or gift card often gives you less than 1 cent per point.
This is why timing and route choice matter. A 50,000-point redemption for a flight worth $600 gives you 1.2 cents per point. The same 50,000 points redeemed for a $400 gift card gives you 0.8 cents per point. Over time, choosing high-value redemptions can significantly increase what your points are worth.
Some cardholders also use points to pay for seat upgrades or ancillary fees (baggage, seat selection) rather than full flights. These redemptions often offer poor value and should be avoided unless you have points expiring soon.
When the Air Canada card makes financial sense
The card is most valuable if you fly Air Canada at least 3 to 4 times per year and spend money on Air Canada hotels, car rentals, or partner merchants. Each flight earns bonus points, and those points accumulate toward a redemption faster than points from everyday spending alone.
The standard no-fee card makes sense for casual Air Canada flyers who want to earn points without paying anything. The Prestige card makes sense if you fly Air Canada 6 or more times per year, value lounge access, or travel internationally frequently enough to use the travel insurance.
If you fly multiple airlines equally, or if you prefer cash back over points, a different card may serve you better. If you rarely fly Air Canada but occasionally take one flight per year, the points you earn will take years to redeem, and you may be better off with a general-purpose rewards card.
Frequently Asked Questions
Do I lose my points if I close the card?
No. Your points live in your Air Canada Aeroplan account, not on the card itself. Closing the card does not delete your points. However, if your Aeroplan account has no activity for 12 months, the account may close and points may be forfeited. Keeping the card open ensures your account stays active.
Can I earn points on my Air Canada card if I book through a travel agent or third-party site?
Points are earned only on purchases made directly with the card. If you book through a travel agent or a third-party booking site, the card earns standard points (usually 1 point per dollar), not the bonus Air Canada rate. Booking directly through Air Canada's website or phone line earns the higher bonus rate.
What happens to my points if I move outside Canada?
Your Aeroplan account and points remain yours as long as you keep the account active. You can continue to redeem points for Air Canada flights even if you live outside Canada. However, you may not be able to hold a Canadian credit card if you are no longer a Canadian resident, so check with TD Bank about account rules for non-residents.
How long does it take to earn enough points for a free flight?
This depends on how much you spend and which flights you target. A domestic flight typically costs 12,500 to 25,000 points. If you spend $2,000 per month on the card at 1 point per dollar, you earn 24,000 points per year — enough for one domestic flight. Bonus points on Air Canada purchases and partner spending can cut this time in half.
Is the Air Canada card worth it if I only fly once a year?
Probably not. One flight per year earns bonus points, but the points from that single flight plus a year of everyday spending may not reach a redemption threshold for several years. A general cash-back card or a card with no annual fee would likely serve you better unless you also spend heavily on Air Canada hotels or partner merchants.