United award prices increase: What to know about Aeroplan's dynamic partner pricing

Air Canada's Aeroplan is the latest loyalty program to say goodbye to its fixed award charts — at least, for some of its partner redemptions. Instead, the program now operates using a dynamic pricing model for select Star Alliance partners, such as United Airlines.

With this new award chart, prices for select partner airlines feature a "Starting at" range and a new median amount. Therefore, when you're looking to redeem Aeroplan points with partner airlines, the cost has become a little less predictable — and from what TPG has seen, more expensive.

Here's what you need to know about booking redemptions with partner airlines, including United Airlines, with your Aeroplan points.

Related: How to redeem Aeroplan points for maximum value

Aeroplan launches dynamic award pricing for select partners

As of March 25, Aeroplan now uses dynamic award pricing for the following partner airlines:

• United
• Emirates
• Etihad Airways
• Flydubai
• Regional partners: Calm Air, Canadian North and PAL Airlines

We knew this was coming. Air Canada announced plans to abolish its fixed award charts for select airlines and switch to a dynamic pricing model, and now that day has come. As you can see in the North America award chart below, you'll notice "Starting at" price points and a median price point.

The median price point is meant to give Aeroplan members a possible estimate of the redemption cost based on previous data. Note that the median amounts will only be displayed in award charts for flights originating or ending in North America. Additionally, the median amount will be updated quarterly, with price points reflecting the previous four quarters.

Aeroplan partner award prices have increased

Switching to dynamic pricing is almost never a good thing, and this change seems to be no exception. We looked at a variety of United award tickets bookable through Aeroplan and saw a price increase across the board.

Daily Newsletter

Reward your inbox with the TPG Daily newsletter

Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

Email address

Sign up

By signing up, you will receive newsletters and promotional content and agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.

Among the hardest-hit awards are short-haul domestic flights under 500 miles, which used to cost only 6,000 points each way in economy with Aeroplan's old award chart. We're now seeing consistent prices of 10,000 points for these, a jump of 67%.

We've seen similar price spikes on longer routes, ranging from 11% to 50%:

Of course, with no more fixed award charts for these partner airlines, these numbers are subject to fluctuation. However, this is what we're seeing on a variety of sample flights, so going forward, you should expect to pay more for these partner award flights booked through Aeroplan.

Hard-to-find business-class fares aren't immune either, but so far, these devaluations are less consistent. We checked the following international business-class tickets on multiple dates, and some dates saw an increase in price while others stayed the same:

• From Washington, D.C.'s Dulles International Airport (IAD) to Frankfurt Airport (FRA): Was 70,000 points each way, now 70,000 or 80,000 points depending on dates.
• From Newark Liberty International Airport (EWR) to London's Heathrow Airport (LHR): Was 60,000 points each way, now 60,000 or 80,000 points depending on dates.

None of our sample flights decreased in price, but a handful stayed constant — at least for now. These include the following one-way international routes:

• From Los Angeles International Airport (LAX) to Sydney Airport (SYD): 60,000 points in economy class
• From Dulles International Airport (IAD) to Murtala Muhammed International Airport in Lagos, Nigeria (LOS): 40,000 points in economy class
• From IAD to Frankfurt Airport (FRA): 40,000 points in economy class, 70,000 in business class
• From San Francisco International Airport (SFO) to Tokyo's Haneda Airport (HND): 60,000 points in economy class
• From Newark Liberty International Airport (EWR) to Dubai International Airport (DXB): 55,000 points in economy class
• From Houston's George Bush Intercontinental Airport (IAH) to Sao Paulo/Guarulhos-Governor André Franco Montoro International Airport (GRU): 40,000 points in economy class, 60,000 points in business class
• From EWR to O.R. Tambo International Airport (JNB) in Johannesburg: 90,000 points in business class

If these prices hold, these could still be sweet spots in the Aeroplan program. However, it's possible Aeroplan hasn't finished rolling out its new pricing scheme and these will soon be devalued as well. Until then, now is a great time to book one of the above award tickets.

Plus, if you have status with Aeroplan or are a credit card holder, you can save on award redemptions. Alongside the new reward chart, Aeroplan announced that if you have status with the loyalty program or have an Aeroplan card, such as the Aeroplan® Credit Card (see rates and fees) you'll have access to reduced award fares.

Related: The complete guide to Aeroplan's stopover and routing rules

Bottom line

Air Canada's Aeroplan still offers good value on partner flights, especially longer domestic and international routes, which we've found have had the lowest devaluations — and in some cases, no change. However, shorter routes are trending toward consistently costing far more Aeroplan points.

Aeroplan used to be a reliable way to book United award flights for fewer points than on United's website, but that may no longer be the case. Now, we'd advise checking multiple airlines' sites to find the best rates.