Air Transat is planning a new loyalty program with Desjardins and Visa – MoneySense

The target group for the new programs is unclear

Barry Choi, who runs personal finance and travel website Money We Have, said it’s not yet clear whether the new loyalty program will be similar to Air Canada’s Aeroplan program, or closer to the previously existing BonBon program, which was less consumer-oriented and more focused on travel agents.

“I think if they go the consumer-oriented route, that’s where things could get really interesting,” he said in an interview. “Because I would compare it to other airlines, if you think about WestJet, Porter and Air Canada, they all already have their own credit cards, which allow consumers to earn points on everyday purchases, which can then be redeemed for flights, hotels and car rentals.”

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Choi said having a loyalty program generally “makes sense” and can help the company leverage consumer data. “It’s kind of funny; you would think they would already have something like this. Every brand I know has a loyalty program for this reason, but yet they seem to be behind,” Choi said.

The program must be fundamental to Air Transat’s business strategy

The program is a fundamental pillar of Transat’s business strategy, Xavier Szwengler, vice president for marketing and distribution at Transat, said in a news release Monday. “It allows us to strengthen ties with our customers while accelerating sustainable value creation for Transat and its investors.”

More details about the program will be released in the coming months, he said.

Dan Iwachiw, vice president and head of product at Visa Canada, said the organization will introduce a “range of cards designed to provide Canadians with more travel options, meaningful rewards and exceptional payment experiences.”

What the numbers say about Air Transat’s profits

Air Transat in December reported its first full-year profit since 2018. For the full fiscal year, Transat earned $241.9 million, thanks to an excellent third quarter, compared to a loss of $114 million in fiscal 2024.

Air Transat primarily flies to destinations in Mexico, the Caribbean and Europe, and only two destinations in the US. As demand for flights to Florida, Las Vegas and other US destinations has plummeted, the airline has looked to destinations further afield.

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