Chase doubled the annual fee on its U.S. Air Canada Aeroplan credit card from $95 to $195. That's the type of headlines that usually take cardholders directly to the cancel button. However, in this instance, the new Chase Air Canada Aeroplan Card is worth its higher cost particularly for those who are looking to achieve Aeroplan elite status.

While the new benefits go into effect Sept.10,the increased fee won't apply to existing cardholders until the next renewal which begins Dec.1.That way, if you already have the card, you'll have a window of opportunity where you're enjoying better features at the same price.

What You're Getting Now is The Name of The Book

First, there's the automatic Aeroplan 25K status for all primary cardmembers with no spending limit. It's a significant change in the past, spending $15,000 or more per calendar year after the first two years or so earned that status. Now it's baked by just holding the card.

It's not a high status but it's actually very useful for those who fly Air Canada at least occasionally. Features priority check-in, Zone 2 boarding, preferential seat selection on eligible fares, Star Alliance Silver recognition and five eUpgrade credits. You'll also receive a complimentary first checked bag benefit for you and up to 8 travelers on your reservation for Air Canada, which is a benefit that has been included in the card for a long time.

In addition to the status, the refresh includes a flat 15% discount on eligible Air Canada flight award redemptions, as well as a maximum of $100 in statement credits per year awarded in Air Canada, given in half-yearly increments (January to June and July to December). You can use them both and you've essentially cancelled out the original $95 fee, but you'll need to touch Air Canada's ecosystem twice a year to do so.

The Earning Structure Shifted, Too

All of the everyday spending categories were reordered in this update. Travel purchases (all of those purchases that are related to traveling, such as airlines, hotel stays, rental cars, cruises, tolls, rideshare, trains, etc.) now get 3 points for every dollar. Dining, groceries, and gasoline each get 2 points per dollar while all other items get 1 point per dollar.

That shuffle has some real pros and cons to keep in mind before you make your pick on where to put this card in your wallet:

• Spending on dining and food away from home fell from 3 points a dollar to 2 while gas rose from 1 point a dollar to 2.
• The old "bonus" of 500 points for each $2,000 in purchases, with a maximum of 1,500 points per month, has been completely removed.
• The 10% bonus on Ultimate Rewards transfers of 50,000 points or more is ending on December 31, but will be available for stacking with Chase's current 20% transfer bonus until Sept. 30.The 10% bonus on transfers to Ultimate Rewards of 50,000 points or more is ending on Dec. 31, but it will be available to be stacked with Chase's current 20% transfer bonus through Sept. 30.

One point that should be noted, Chase is promoting the purchase of Air Canada as a 5x deal, but that's a bit of a red flag. The "5x" is just the extra points you're able to earn by simply crediting the flight to your Aeroplan account as a 25K member, not over how much you spend on Air Canada purchases. That is, while 3x in general on travel is pretty great, 3x on tickets for Air Canada is not. You should therefore use this card for travel aside from Air Canada, including cruises, Airbnb stays, and more.

Status Credits Add Up Fast For Big Spenders

Automatic 25K status does not give you 25,000 Status Qualifying Credits and won't grant them to you automatically, but it is a good card for racking up the SQCs nonetheless. They get 5,000 credit for holding the card every year, 10,000 additional credit after spending $25,000 in a year and 10,000 more after spending $50,000 in a year, for a maximum of 25,000 credit per year. If you spend more than $75,000, you get bumped up to automatic 35K.

The credits are also earned during the process, meaning you'll get Aeroplan's Milestones, such as bonus eUpgrade credits, Maple Leaf Lounge guest passes, priority reward vouchers or Aeroplan points at different spending levels. It's also important to note that the $50k-$75k range of spending does not offer any extra card-based credits; this is a real advantage for big spenders looking to earn Aeroplan's higher levels, such as 75K and Super Elite.

The Hidden Gem in the Real Value stacking discounts

The new 15% award discount will apply to any eligible flight redemption that involves an Air Canada segment, as well as this is the interesting part the discounts for eligible awards can be combined with Aeroplan Priority Reward vouchers, which take another 50% off their eligible award prices. Together, that is a rather large discount on the right redemption. Remember, Air Canada's awards are dynamic, so 15% off of a high fare may not be a good deal. However, if you are simply redeeming for the standard redemption value of 100,000 points, then that discount would save you 15,000 points, and that is more than enough to make up for the increased fee.

Does Paying a Higher Fee Make Sense?

It's a harder case to make for a person who primarily transacts Aeroplan miles for partner airline awards and doesn't fly Air Canada that much, as they do need an Air Canada leg on their holiday. This card is almost a no-brainer for frequent Air Canada travelers, particularly those aiming for elite status.

New applicants also may want to consider a big welcome offer: 75,000 points for the initial $4,000 of spending in the first three months, followed by an additional 40,000 points for the first $20,000 of spending during the first year. That second tier equates to about 2.5 points per dollar in addition to earning regular points and, if you're already putting some money into the 3x travel tier and trying to hit the status credit milestones anyway, it's a pretty big motivator.

Bottom Line

Chase's recharging of the Aeroplan Card is one of the few times a fee increase is warranted for any card. The 15% award discount is a big addition to the free 25K status and more than all the points from Air Canada's 3x category on general travel spending are worth.It's a lot of value for anyone who flies Air Canada with any frequency, or is pursuing higher status levels in Aeroplan the free 25K status alone, combined with the Priority Rewards award discount, and the actually decent 3x general travel spending points are still significant value. The compromises (eating less, working in grocery stores, not taking the ending bonus) hurt a bit, but it's more than made up for by what's new.

The card isn't for everyone, though. The $195 charge is more difficult to stomach for travelers who don't fly Air Canada that often, as the marquee discount only applies to trips that include an Air Canada flight. If this is the case, that traveler might want to reconsider whether to keep the card in the wallet when the next fee comes in due to renewal.