Air Canada Monetizes Aeroplan for $2.5 Billion, Retains Control
Air Canada announced it is selling a 25% stake in its Aeroplan loyalty program to Blackstone and Canadian pension funds for $2.5 billion, valuing the program at $10 billion while keeping 75% ownership and full operational control.
Air Canada reported a net loss of $178 million in the second quarter despite revenue reaching $6.3 billion, up year-over-year from $5.6 billion. The company is now monetizing a major asset to strengthen its finances: Aeroplan Inc. is receiving a $2.5 billion minority equity investment from funds managed by Blackstone, La Caisse and others, with the investor group acquiring a 25 percent non-controlling equity interest.
Air Canada will retain 75% of Aeroplan and full control over strategy, operations and day-to-day management, as this is a financial move to unlock part of Aeroplan's value while allowing Air Canada to keep control of an increasingly strategic asset.
Financial strategy
- Proceeds will be used to repay an upcoming US$1.2 billion bond maturity and accelerate share repurchases, including a substantial issuer bid of up to C$800 million.
- The airline has faced higher fuel costs and lowered its 2026 adjusted profit forecast to C$2.9–C$3.2 billion.
- Aeroplan has more than 10 million active members.
Air Canada says the transaction will bring no changes for members, partners or employees. For Aeroplan members and those considering loyalty program enrollment, this deal signals confidence in the program's long-term value while providing Air Canada the capital flexibility to navigate elevated fuel costs and industry pressures.
Sources
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