Air Transat Takes Flight in Loyalty Wars with New Desjardins and Visa Partnership

MONTREAL, QC – January 19, 2026 – Air Transat is preparing to enter Canada's competitive travel rewards landscape, announcing a major strategic partnership with Desjardins Group and Visa to launch a new loyalty program in the second half of 2026. The move signals a significant strategic shift for the Montreal-based leisure carrier, which has long operated without a frequent flyer program comparable to those of its larger domestic competitors.

The tripartite alliance brings together an award-winning airline, one of Canada's largest financial cooperatives, and a global payments leader. The stated goal is to create a program defined by "accessible and personalized benefits" that enriches the customer journey from booking to destination. For an airline that has been voted the World's Best Leisure Airline seven times, this initiative represents a crucial step toward deepening customer relationships and building a new, sustainable revenue stream.

"This strategic partnership with Desjardins, powered by Visa, is a fundamental pillar of our business strategy," said Xavier Szwengler, Vice President of Marketing and Distribution at Transat. "It allows us to strengthen ties with our customers while accelerating sustainable value creation for Transat and its investors."

A New Player in a Crowded Field

Air Transat's entry comes at a time when the Canadian loyalty market is mature and fiercely competitive, dominated by Air Canada's behemoth Aeroplan program and a newly revamped WestJet Rewards. For years, these programs have been central to their respective airlines' business models, creating deep-seated customer loyalty and generating billions in ancillary revenue, particularly through co-branded credit card partnerships.

Aeroplan is widely regarded for its vast network of over 45 partner airlines, flexible redemption options, and a points-earning structure that extends far beyond flights into everyday retail and financial services. WestJet recently overhauled its own program, moving to a more flexible points-based system and enhancing its elite status tiers to better compete for frequent travelers. Porter Airlines also maintains its own VIPorter program for its regional customer base.

Until now, Air Transat has been a notable outlier. After suspending its previous, less consumer-facing BonBon rewards program last year, the airline lacked a mechanism to reward its most loyal passengers. According to travel industry experts, this gap was becoming increasingly conspicuous.

"For a brand of its size and reputation, the absence of a robust loyalty program was a significant competitive disadvantage," noted one personal finance expert. "To be truly competitive, the new program will need to be consumer-facing, allowing members to earn points on everyday purchases through a co-branded credit card, not just when they fly. That's where the real engagement begins."

The Strategic Power of Three

This new venture is more than just an airline loyalty program; it is a powerful business alliance with deep strategic roots, particularly within Quebec. The partnership between Air Transat and Desjardins Group unites two of the province's most iconic brands, creating a formidable force aimed at Desjardins' vast member base.

For Air Transat, which posted its first full-year profit since 2018 last December, the financial logic is compelling. Modern airline loyalty programs have evolved into highly profitable enterprises, often rivaling the profitability of flying planes. The core business model involves the airline selling points or miles to a financial partner—in this case, Desjardins—which then uses them as rewards for its co-branded credit cardholders. This creates a high-margin revenue stream for the airline that is insulated from the volatility of fuel costs and ticket sales.

Desjardins, in turn, gains a powerful tool to attract and retain its members. The financial group plans to launch a new line of Air Transat co-branded Visa credit cards, which will serve as the primary vehicle for earning points within the new ecosystem. "We look forward to unveiling our line of credit cards that will enhance the loyalty experience offered by Air Transat," said Nathalie Larue, Executive Vice-President at Desjardins Group.

Visa's involvement provides the global payment infrastructure, ensuring security and seamless transactions for cardholders wherever they travel. "Together, we're introducing a new suite of cards designed to bring more travel opportunities, meaningful rewards, and exceptional payment experiences to Canadians," commented Dan Iwachiw, Vice President and Head of Product at Visa Canada.

Redefining Rewards for the Leisure Traveler

While full details of the program's earning structure, redemption options, and potential elite tiers will be released in the coming months, the partners have emphasized a "modern, simple, and flexible approach." This language appears carefully chosen to appeal to Canadian consumers, who are notoriously value-conscious and often express frustration with the complexity of existing rewards programs.

Research on Canadian consumer preferences shows that while saving money on travel is the top priority, flexibility in earning and redeeming points on everyday items is a close second. A successful program for Air Transat will likely need to balance aspirational travel rewards with tangible, easy-to-understand value.

The new Desjardins credit cards will be central to this value proposition. While specifics are not yet known, Desjardins' existing premium travel cards, like the Odyssey World Elite Mastercard, offer perks such as comprehensive travel insurance and airport lounge access. It is expected the new Air Transat cards will integrate similar benefits alongside an accelerated earning rate for travel booked with the airline.

Ultimately, the success of this new program will hinge on its ability to resonate with Air Transat's core demographic: leisure travelers and families. By creating a simple, rewarding, and digitally seamless experience, Air Transat has the opportunity not only to compete with its rivals but also to redefine what loyalty means for the Canadian vacationer. As the launch in the second half of 2026 approaches, the Canadian travel industry will be watching closely to see if this powerful new alliance can indeed change the game.