Mastercard Teams With BMO and Porter Airlines on Travel Rewards

Mastercard, BMO and Porter Airlines have launched a rewards program for Canadian travelers.

The new BMO VIPorter Mastercard suite is set to roll out to Canadians in spring 2025, the companies announced Wednesday (Jan. 30).

“Today’s consumer demands new offerings to bring them closer to their passions, including travel,” Diane Miquelon, senior vice president for financial institutions at Mastercard, Canada, said in a news release.

“We’re proud to partner with Porter and BMO on this new Mastercard credit card suite that offers enhanced travel benefits and provides meaningful value and rewards, while prioritizing trust and security for each transaction.”

The card will let VIPorter members build points quickly for redemption across Porter’s North American network, as well as introduce the redemption of points with Porter’s global airline partners, the release added.

The partnership comes as the airline industry is facing growing scrutiny over its loyalty programs, prompting PYMNTS to speak to several industry experts about the debate.

Loyalty Status Co. CEO Mark Ross-Smith said the economics can be difficult with typical operating margins from selling a seat domestically around 12%, and less in coach.

“For that margin the airline has to accept payments, check you in, provide airport facilities, employ thousands of staff, have gate agents, tag your checked bags and deliver them to you after you land, employ customer support agents, feed you on the plane, comply with a growing list of mandatory safety regulations in all markets they fly to versus running a loyalty program, which sells points and miles to banks, enjoys a 30%-80% operating margin, employs much less staff, and has no airplanes to maintain, no pilots, and no unions,” Ross-Smith said.

“It’s insanely attractive to move toward rewarding people who spend more and contribute toward the part of the company (the loyalty program) that ultimately underpins the value of the airline group,” he said. “Who needs frequent flyers when you have frequent spenders?”

Chris Lewis, head of research at FinanceBuzz, had a different perspective.

“Airlines obviously have to be profitable, but I think they’re quickly realizing that the way to do that isn’t by skimping on the customer experience,” he told PYMNTS.