Aeroplan will begin putting expiry dates on its frequent-flyer miles, forcing travellers to use them up within seven years, the company said Monday.

Starting Jan. 1, 2007, all Aeroplan miles issued will carry a seven-year expiry date. Miles not used by the expiry date will be deducted from a member's account.

All miles issued before Jan 1., 2007, will be date-stamped as Dec. 31, 2006, meaning consumers must use them by Dec. 31, 2013.

The company said the average time between a member earning a mile and using it is roughly two-and-half years.

Another change to the loyalty program begins July 1, 2007, when members will be required to add or redeem miles at least once in a 12-month period. Members who don't use their account once in that period will have their accounts expire. Accounts that have expired will be able to be reinstated for a fee of $30 plus one cent per restored mile.

"The ultimate success of any loyalty program is predicated upon having an active membership," said Liz Graham, Aeroplan's vice president of operations, in a release.

Increased payout from income fund

Also on Monday, the Aeroplan Income Fund said it is increasing its monthly cash distribution to seven cents per unit from 6.25 cents.

"The decision to increase cash distributions was made in light of Aeroplan's continuing strong financial performance," the fund said.

Units of Aeroplan slipped 11 cents to close at $15.64 on the TSX.