Blackstone, La Caisse to Buy 25% of Air Canada's Aeroplan Loyalty Program — Update

By Paul Vieira

Asset manager Blackstone and Quebec's La Caisse pension fund have agreed to acquire a 25% stake in Air Canada's loyalty-points program for nearly US$2 billion, which the airline said would help reduce debt and take steps toward obtaining an investment-grade rating.

Blackstone, meanwhile, said the deal is a sign of the asset manager's confidence in Canada as a place to do business.

Montreal-based Air Canada, the nation's largest airline, said the proceeds would help repay an upcoming billion-dollar bond maturity and reduce debt. Air Canada said the transaction values its Aeroplan points program at 10 billion Canadian dollars (US$7.2 billion).

Blackstone and La Caisse are leading a consortium that also includes two other Canadian pension plans: PSP Investment and the British Columbia Investment Management Corporation. Montreal's La Caisse manages over a half-trillion Canadian dollars in assets on behalf of Quebec residents, and part of its mandate is to support companies in the province.

Aeroplan members collect points through Air Canada flights and purchases made with co-branded credit cards, which they can then redeem in exchange for air travel or other goods. Securities filings indicate that Aeroplan has over 10 million active members, or a total representing a quarter of Canada's population.

"The transaction strengthens Air Canada's financial position by unlocking value from Aeroplan while retaining full operational control," said John Di Bert, the airline's chief financial officer. "It provides additional financial flexibility, and supports our pursuit of an investment grade rating," he added. Moody's, S&P Global and Fitch Ratings all have speculative-grade ratings on Air Canada debt.

Air Canada reported second-quarter earnings on Tuesday, following news of the Aeroplan deal, and the airline said it is carrying C$12.79 billion of long-term debt and lease liabilities on its balance sheet. The company said its adjusted earnings for the quarter were 40 Canadian cents a share, above analysts' estimates for 15 Canadian cents a share according to FactSet.

About two decades ago, Air Canada spun off Aeroplan as a separate, publicly-traded entity to help raise money after a bankruptcy restructuring. In 2019, the airline reacquired Aeroplan for C$497 million in cash, along with the assumption of about C$2 billion in liability associated with unused Aeroplan points.

Aeroplan is an industry-leading loyalty platform, according to Mark Rutledge, a senior managing director at Blackstone. The travel-industry Freddie Awards named Aeroplan as this year's winner of the best loyalty-travel program in the Americas.

"Blackstone is a long-term believer in Canada as both a compelling place to invest and serve clients," Rutledge said.

"This transaction adds to our decades-long commitment to the country and is another example of our ability to provide flexible, efficient capital solutions to leading businesses around the world," he added.

Air Canada shares finished trading on Tuesday up 5.9%, at C$27.27, in Toronto.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

August 11, 2026 19:36 ET (23:36 GMT)