What an Airmiles credit card does
An Airmiles credit card is a rewards card that converts your spending into Airmiles — a currency you redeem for flights, hotel stays, car rentals, and other travel purchases. Every time you use the card, you earn a set number of Airmiles per dollar spent. The card itself functions like any other credit card: you receive a monthly bill, pay interest if you carry a balance, and may face annual fees.
The main difference from a standard card is that your rewards accumulate toward travel rather than cash back. Airmiles are issued by a loyalty program (in Canada, Airmiles is run by LoyaltyOne), and the credit card is the primary way most people earn them. You can also earn Airmiles through retail partners and gas stations, but the card is where the bulk of rewards typically come from for regular spenders.
The card issuer — usually a major bank like TD, RBC, or BMO in Canada — handles the credit side: approval, billing, interest rates, and customer service. The Airmiles program handles the rewards: how many miles you earn, what they cost to redeem, and which travel partners accept them.
Key Takeaways
- Airmiles credit cards earn rewards on every purchase, but you pay interest on unpaid balances just like any credit card.
- Most cards charge an annual fee (typically $120 to $150) that you pay whether or not you use the card.
- Redemption rates vary widely — some flights cost 25,000 Airmiles, others cost 50,000 or more, depending on the airline and route.
- You need enough Airmiles saved before you can book; there is no way to pay the difference in cash if you fall short.
- Airmiles expire if your account is inactive for a set period, usually 24 months, so you must use the card or the miles regularly.
How many Airmiles you earn per purchase
The earning rate depends on which card you hold and what you buy. Most Airmiles cards earn between 1 and 3 Airmiles per dollar on everyday purchases, with bonus rates on specific categories like groceries, gas, or dining. Premium cards (those with higher annual fees) typically offer higher base rates or more generous bonus categories.
For example, a card might earn 3 Airmiles per dollar on gas and groceries, but only 1 Airmile per dollar on everything else. Some cards offer a flat rate across all purchases — say, 2 Airmiles per dollar — with no category bonuses. The card's terms sheet will spell out exactly which categories earn which rates.
You earn Airmiles only on the purchase amount, not on taxes or fees. If you buy something for $100 plus $13 tax, you earn Airmiles on the $100, not the $113. Airmiles do not accrue on balance transfers, cash advances, or fees you pay to the card issuer.
Annual fees and other costs
Nearly all Airmiles credit cards charge an annual fee, usually between $120 and $150. Some cards waive the first year, but you will pay it in year two and every year after unless you close the card. A few entry-level Airmiles cards have no annual fee, but these are rare and typically earn fewer Airmiles per dollar.
Beyond the annual fee, you pay interest on any balance you carry from month to month. The interest rate (called the purchase APR) varies by card and by your creditworthiness, but typically ranges from 19% to 22%. If you carry a $1,000 balance for a month, you might pay $16 to $18 in interest alone — far more than the value of the Airmiles you earned on that purchase.
Some cards offer a promotional period with 0% interest for the first 6 to 12 months. After that period ends, the regular interest rate applies. There may also be fees for balance transfers, foreign transactions (usually 2% to 3%), or late payments.
What Airmiles are worth when you redeem them
The value of an Airmile varies dramatically depending on what you redeem it for. A short domestic flight might cost 25,000 Airmiles, while a long international flight could cost 60,000 or more. Hotel nights, car rentals, and other travel products have their own pricing, and these rates change regularly.
To figure out whether the card makes sense for you, divide the cost of a typical flight you would take by the number of Airmiles required. If a flight you want costs 40,000 Airmiles and you earn 2 Airmiles per dollar, you would need to spend $20,000 on the card to earn that flight. Add the annual fee ($120 to $150) and any interest you might pay, and compare that to the price of buying the ticket outright.
Airmiles pricing is not transparent in advance — you cannot see the cost of a specific flight until you log into your account and search for it. This makes it hard to plan. Some people find that premium cabin flights (business or first class) offer better value per Airmile, but these require far more miles to book.
How to earn Airmiles faster
The fastest way to accumulate Airmiles is to use the card for all your regular spending — groceries, gas, utilities, subscriptions, and dining. If you spend $3,000 per month on the card and earn 2 Airmiles per dollar, you would earn 6,000 Airmiles monthly, or 72,000 per year. That is enough for one or two domestic flights, depending on the route.
You can also earn Airmiles outside the credit card through retail partners (grocery stores, pharmacies, gas stations) and online shopping portals. However, these typically earn at a much lower rate — often 1 Airmile per $5 or $10 spent — so they are a supplement, not the main source.
Some cards offer bonus Airmiles when you first open the account, usually 500 to 1,000 miles. This is a one-time boost and does not reduce the time to earn a full flight significantly. A few cards also offer bonus Airmiles on your card anniversary each year, which can add up over time.
Airmiles expiration and account maintenance
Airmiles expire if your account is inactive for 24 months. "Inactive" means you have not earned or redeemed any Airmiles during that period. If you stop using the card and do not shop at Airmiles partners, your miles will disappear after two years of no activity.
To keep your account active, you must either use the credit card, earn Airmiles through a retail partner, or redeem miles at least once every 24 months. Even a small purchase counts — you do not need to earn a large number of miles to reset the clock. If you are not using the card regularly, set a reminder to make at least one small purchase every two years, or consider closing the account if you do not plan to use it.
If your Airmiles do expire, you cannot recover them. The Airmiles program will not reinstate expired miles as a courtesy, so tracking your activity is your responsibility.
Comparing Airmiles cards to other rewards cards
Airmiles cards make sense if you travel frequently and can accumulate enough miles for regular flights. If you travel once every few years, or if you prefer flexibility, a cash-back card might be better. A cash-back card earns 1% to 2% back on all purchases, which you can use for anything — not just travel.
Other travel rewards cards (like those tied to specific airlines or hotel chains) may offer better value if you are loyal to one airline or hotel brand. These cards often include perks like free checked bags, priority boarding, or room upgrades that Airmiles cards do not provide.
The trade-off is that Airmiles cards are accepted at more travel partners than airline-specific cards, so you have more options for where to redeem. But you must accumulate enough miles before you can book, whereas with a cash-back card you can use your rewards when ready on any purchase.
Frequently Asked Questions
Can I transfer my Airmiles to someone else or give them as a gift?
No. Airmiles are tied to your account and cannot be transferred, gifted, or sold. If you want to use your miles to book a flight for someone else, you must book the ticket yourself and then provide it to them. You cannot move the miles to their account.
What happens to my Airmiles if I close the credit card?
Closing the card does not automatically cancel your Airmiles account. Your miles remain in your Airmiles account as long as you keep the account active (by earning or redeeming at least once every 24 months). However, you will no longer earn Airmiles on credit card purchases once the card is closed.
Can I use Airmiles to pay for flights on any airline?
No. Airmiles can be redeemed through specific airline and travel partners that the Airmiles program has agreements with. The list includes major carriers like Air Canada, United, and others, but not every airline accepts Airmiles. Check the Airmiles website to see which airlines and travel partners are available in your region.
Do I have to pay taxes and fees on top of my Airmiles when I book a flight?
Yes. When you redeem Airmiles for a flight, you still pay the airline's taxes, fees, and surcharges out of pocket. These can add $50 to $200 or more to the cost of a flight, depending on the route and airline. The Airmiles cover the base fare only.
What credit score do I need to be approved for an Airmiles card?
Most Airmiles cards require good to excellent credit, typically a score of 670 or higher, though this varies by card and issuer. Some entry-level cards may accept scores in the 600 range. The best way to know is to check the card's requirements on the issuer's website or contact them directly.