Air Canada (AC) investor relations material

Program transformation and strategy

• Aeroplan was repatriated in 2019 and underwent a CAD 250 million overhaul to create a digital-first, frictionless loyalty experience with enhanced value propositions for members, elite tiers, and co-brand credit cards.

• Bringing Aeroplan in-house restored customer data control, aligned goals, and reduced member friction, resulting in structural efficiencies and economic benefits.

• The program aims to be an everyday brand, driving engagement beyond travel through partnerships and daily utility, leveraging a large Canadian customer base.

Market focus and growth

• Primary growth remains in Canada, but the U.S. is treated as a second home market due to extensive transborder operations and a significant U.S. member base.

• Outside North America, Aeroplan participates in bank transfer currencies but does not heavily invest in building the franchise.

• Membership has nearly tripled since 2019, now exceeding 10 million active members, with strong growth in gross billings and EBITDA.

Revenue, partnerships, and redemption

• Recent elite program changes align rewards with revenue, driving competitive insulation and sustainable benefits across all tiers.

• Non-air and retail redemption options have doubled since relaunch, now representing over 25% of redemptions, while air redemptions remain above 70%.

• Micro-redemption moments, such as retail and fuel discounts, have increased engagement by 15-20% and appeal to both frequent and infrequent travelers.