BMO Sunsets AIR MILES, Bets Big on New 'Blue Rewards' Program

TORONTO, ON – January 26, 2026 – In a landmark move set to reshape Canada's loyalty landscape, BMO Financial Group today announced it will replace the iconic AIR MILES program with a new, proprietary system called Blue Rewards. The transition, scheduled for the summer of 2026, marks the end of an era for one of the country's most recognized rewards programs and signals a major strategic pivot by the bank to create a more integrated, digital-first loyalty experience.

The new program, which will be operated by a BMO subsidiary, promises a simplified, flexible, and more personalized way for millions of Canadians to earn and redeem points. Existing AIR MILES collectors will see their Miles automatically converted to new 'Blue Points' at an equivalent value, with BMO assuring a seamless transition that requires no action from members.

A New Coat of Paint or a Real Renovation?

For decades, AIR MILES has been a household name, but its structure, with separate Cash and Dream Miles categories, has been a point of confusion for some collectors. Blue Rewards aims to eliminate this complexity by consolidating everything into a single, easy-to-use Blue Points currency. The program also promises a simplified travel redemption platform for flights, hotels, and car rentals, which will be powered by travel technology giant Expedia Group.

"Blue Rewards completely reimagines the loyalty experience with the client at the centre," said Mathew Mehrotra, Group Head, Canadian Personal & Business Banking at BMO. "With a digitally enabled platform, we're making one of Canada's most celebrated loyalty programs even better by delivering simpler, flexible, more personalized rewards for members and helping them make real financial progress every day."

This overhaul is more than a simple rebrand. By bringing the program fully in-house, BMO gains complete control over the rewards economy, partner network, and, most importantly, the customer data. This allows for deeper integration with its core banking products, a strategic advantage in an increasingly competitive market.

The Battle for the Canadian Wallet

BMO's move comes as the battle for consumer loyalty in Canada intensifies. The Canadian market is often described as "loyalty-obsessed," with over 90% of the population enrolled in at least one program. Blue Rewards enters a crowded field dominated by powerful incumbents.

PC Optimum, operated by Loblaw, leverages its vast grocery and pharmacy network (including Shoppers Drug Mart and Esso gas stations) to offer highly integrated, data-driven rewards. Air Canada's Aeroplan remains a dominant force in travel-centric loyalty, with a tiered status system that appeals to frequent flyers. Meanwhile, Scene+, a joint venture between Scotiabank, Cineplex, and Empire Company (owner of Sobeys), has rapidly expanded from movie tickets to a broad-based program covering groceries, dining, and travel.

By launching Blue Rewards, BMO is betting it can create a more compelling ecosystem by directly linking rewards to everyday banking. The program will allow BMO Chequing Account holders to opt-in to earn points on gas, grocery, and EV charging purchases made with their debit cards—a direct challenge to competitors that rely primarily on credit card spend. This strategy aims to increase customer 'stickiness,' making it more attractive for clients to consolidate their financial lives with BMO.

A Shift in Alliances and Earning Power

The value of any loyalty program rests heavily on its partner network, and Blue Rewards is launching with a refreshed and expanded roster. New strategic partners include Porter Airlines, adding a key regional and leisure travel option. The inclusion of ALL Accor hotel brands, such as the luxurious Fairmont and Novotel, provides a strong hospitality redemption component. On the everyday spending front, partnerships with grocery delivery service Instacart and MTY Group's large portfolio of restaurants—including Thai Express, Bâton Rouge, and Mr. Sub—aim to embed the program into daily life.

However, the transition also marks a significant departure. The long-standing partnership with Shell Canada will end on May 25, 2026. For years, earning Miles on fuel has been a cornerstone of the AIR MILES program for many Canadians. The loss of a major national gas partner represents a potential challenge for Blue Rewards. BMO appears poised to counter this by introducing its own BMO Blue Rewards credit cards, which are touted as having built-in accelerators for gas, groceries, and wholesale purchases, effectively shifting the earning power from a partner brand directly to a BMO financial product.

"With more ways to earn, more places to redeem and a growing network of partners, Blue Rewards is designed to help members find more value in their everyday purchases," said Shawn Stewart, President of Blue Rewards, emphasizing the program's focus on broad appeal.

A Digital-First Loyalty Experience

At its core, the transformation from AIR MILES to Blue Rewards is a digital play. The program will be anchored by a newly designed app, which will be available to all Canadians. For BMO clients, the experience promises to be even more seamless, with deep integration into the bank's existing mobile and online banking platforms. This move aligns with a broader industry trend where user-friendly apps, real-time point tracking, and personalized offers are no longer perks but expectations.

One of the program's more innovative digital features is the ability for members to earn points at most grocery retailers and wholesale clubs across Canada simply by scanning their receipts through the app. This feature cleverly bypasses the need for exclusive grocery partnerships, broadening the program's appeal to consumers regardless of where they shop.

BMO has already opened a waitlist for its new Blue Rewards credit cards, enticing potential applicants with the chance to win 1 million Blue Points and receive exclusive welcome offers. This strategy builds anticipation and allows the bank to gauge interest ahead of the 2026 launch. Ultimately, the success of Blue Rewards will hinge on its ability to deliver a frictionless, valuable, and digitally intuitive experience that proves to be more than just a new name for an old program.