Air Canada shares climbed to their highest level since July 2021 after reports that Blackstone is nearing a deal to buy a minority stake in Aeroplan, the carrier’s loyalty programme, in a transaction worth about US$2 billion. The proposed investment would involve Blackstone alongside Canadian funds and would value Aeroplan as a standalone business well above what the market had previously assumed.
The deal has not been completed and no formal confirmation has emerged from Air Canada or Blackstone. Bloomberg reported that an announcement could come as early as this week. The move drew fresh attention to the value of airline loyalty programmes, which can generate substantial cash flow outside the core passenger operation.
Bank of Nova Scotia analyst Konark Gupta upgraded Air Canada to sector outperform after the report, arguing that the implied valuation was materially higher than the level reflected in the stock. The rally lifted the airline to a share price peak not seen since 2021, underscoring investor interest in a possible partial monetisation of one of its most valuable non-airline assets.