Aeration works by allowing the wine to oxidise. The increased oxidation softens the tannins and seems to smooth out the wine. Aerating plays a huge part in enhancing your drinking experience; first off, it releases a wine's beautiful aroma.
Does aerating wine make a difference?
Aerating wine simply means exposing the wine to air or giving it a chance to "breathe" before drinking it. The reaction between gases in the air and wine changes the flavor of the wine. However, while some wines benefit from aeration, it either doesn't help other wines or else makes them taste downright bad.
What does aerating wine do to it?
Aerating wine allows the taster to experience the full character of a wine by enhancing its flavour and scent/bouquet/aroma. Exposing wine to air does two things: it triggers oxidation and evaporation.