Air Canada reports August traffic



    MONTREAL, Sept. 4 /CNW Telbec/ - For the month of August, Air Canada
today reported a load factor of 84.4 per cent on a consolidated basis with
Jazz, versus 83.8 per cent in August 2007, an increase of 0.6 percentage
points. System traffic decreased 1.5 per cent on a capacity decrease of
2.2 per cent system wide.
    The mainline carrier flew 0.8 per cent fewer revenue passenger miles
(RPMs) in August 2008 than in August 2007, according to preliminary traffic
figures. Capacity decreased by 2.0 per cent, resulting in a load factor of
85.4 per cent, a record for the month, compared to 84.4 per cent in August
2007; an increase of 1.0 percentage point.
    Jazz, from which Air Canada purchases regional capacity, flew 9.2 per
cent fewer RPMs in August 2008 than in August 2007, according to preliminary
traffic figures. Capacity decreased by 4.1 per cent, resulting in a load
factor of 73.2 per cent, compared to 77.3 per cent in August 2007; a decrease
of 4.1 percentage points.
    "At 85.4 per cent, Air Canada mainline recorded a record load factor for
the month of August," said Montie Brewer, President and Chief Executive
Officer. "Demand in North America, as expected, continues to soften as the
industry adjusts fares to reflect the ongoing impact of high fuel prices.
However, through prudent capacity management we were successful in adjusting
operations effectively. I am especially proud of our employees who once again
exceeded both On-Time Performance and Customer Satisfaction objectives for the
month as they worked hard to earn the loyalty of our customers during the peak
summer travel season."

    CAUTION REGARDING FORWARD-LOOKING INFORMATION

    This disclosure may include forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements are based on
assumptions, are subject to important risks and uncertainties and cannot be
relied upon due to, amongst other things, changing external factors and
general uncertainties of the business. Results indicated in forward-looking
statements may differ materially from actual results due to a number of
factors, including without limitation, energy prices, general industry, market
and economic conditions, currency exchange and interest rates, competition,
war, terrorist acts, epidemic diseases, insurance issues and costs, changes in
demand due to the seasonal nature of the business, the ability to reduce
operating costs, employee and labour relations, pension issues, supply issues,
changes in laws, regulatory developments or proceedings, pending and future
litigation and actions by third parties, as well as the factors (including
assumptions) identified in Air Canada's public disclosure file and accessible
through SEDAR at www.sedar.com. Any forward-looking statements contained in
this disclosure represent Air Canada's expectations as of the date of this
disclosure and are subject to change after such date. Air Canada disclaims any
intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as
required under applicable securities regulations.

    
    -------------------------------------------------------------------------
                             AIR CANADA MAINLINE
                           (Includes Jetz & Tier 3)
    -------------------------------------------------------------------------
                              AUGUST                    YEAR-TO-DATE
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  4,805   4,844    -0.8%      32,577  31,819    +2.4%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  5,624   5,739    -2.0%      39,308  38,547    +2.0%
    -------------------------------------------------------------------------
    Load Factor        85.4%   84.4%   +1.0 pts     82.9%   82.5%    +0.4 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    1,447   1,475    -1.9%       9,185   8,971    +2.4%
             ----------------------------------------------------------------
    Canada    ASMs    1,757   1,746    +0.6%      11,246  10,894    +3.2%
             ----------------------------------------------------------------
              Load
               Factor  82.4%   84.5%   -2.1 pts     81.7%   82.3%    -0.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      587     650    -9.7%       4,896   5,215    -6.1%
    U.S.     ----------------------------------------------------------------
     Trans-   ASMs      718     782    -8.2%       6,149   6,536    -5.9%
     border  ----------------------------------------------------------------
              Load
               Factor  81.8%   83.1%   -1.3 pts     79.6%   79.8%   -0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    1,402   1,416    -1.0%       8,633   8,548    +1.0%
             ----------------------------------------------------------------
    Atlantic  ASMs    1,553   1,675    -7.3%      10,116  10,090    +0.3%
             ----------------------------------------------------------------
              Load
               Factor  90.3%   84.5%   +5.8 pts     85.3%   84.7%   +0.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      929     963    -3.5%       5,980   5,930    +0.8%
             ----------------------------------------------------------------
    Pacific   ASMs    1,076   1,126    -4.4%       7,049   7,045    +0.1%
             ----------------------------------------------------------------
              Load
               Factor  86.3%   85.5%   +0.8 pts     84.8%   84.2%   +0.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      440     340   +29.4%       3,883   3,155   +23.1%
    Latin    ----------------------------------------------------------------
     America  ASMs      520     410   +26.8%       4,748   3,982   +19.2%
     & Other ----------------------------------------------------------------
              Load
               Factor  84.6%   82.9%   +1.7 pts     81.8%   79.2%   +2.6 pts
    ------------------------------------------------------------------------


    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                              AUGUST                    YEAR-TO-DATE
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)    374     412    -9.2%       2,830   2,883    -1.8%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)    511     533    -4.1%       3,851   3,855    -0.1%
    -------------------------------------------------------------------------
    Load Factor        73.2%   77.3%   -4.1 pts     73.5%   74.8%   -1.3 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      268     315   -14.9%       2,077   2,162    -3.9%
             ----------------------------------------------------------------
    Canada    ASMs      348     399   -12.8%       2,713   2,807    -3.3%
             ----------------------------------------------------------------
              Load
               Factor  77.0%   78.9%   -1.9 pts     76.6%   77.0%   -0.4 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      106      97    +9.3%         753     721    +4.4%
    U.S.     ----------------------------------------------------------------
     Trans-   ASMs      163     134   +21.6%       1,138   1,048    +8.6%
     border  ----------------------------------------------------------------
              Load
               Factor  65.0%   72.4%   -7.4 pts     66.2%   68.8%   -2.6 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                              AUGUST                    YEAR-TO-DATE
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  5,179   5,256    -1.5%      35,407  34,702    +2.0%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  6,135   6,272    -2.2%      43,159  42,402    +1.8%
    -------------------------------------------------------------------------
    Load Factor        84.4%   83.8%   +0.6 pts     82.0%   81.8%   +0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    1,715   1,790    -4.2%      11,262  11,133    +1.2%
             ----------------------------------------------------------------
    Canada    ASMs    2,105   2,145    -1.9%      13,959  13,701    +1.9%
             ----------------------------------------------------------------
              Load
               Factor  81.5%   83.4%   -1.9 pts     80.7%   81.3%   -0.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      693     747    -7.2%       5,649   5,936    -4.8%
    U.S.     ----------------------------------------------------------------
     Trans-   ASMs      881     916    -3.8%       7,287   7,584    -3.9%
     border  ----------------------------------------------------------------
              Load
               Factor  78.7%   81.6%   -2.9 pts     77.5%   78.3%   -0.8 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    2,771   2,719    +1.9%      18,496  17,633    +4.9%
             ----------------------------------------------------------------
    Interna-  ASMs    3,149   3,211    -1.9%      21,913  21,117    +3.8%
     tional  ----------------------------------------------------------------
              Load
               Factor  88.0%   84.7%   +3.3 pts     84.4%   83.5%   +0.9 pts
    -------------------------------------------------------------------------

    
    %SEDAR: 00001324EF




For further information:

For further information: Isabelle Arthur (Montréal), (514) 422-5788;
Peter Fitzpatrick (Toronto), (416) 263-5576; Angela Mah (Vancouver), (604)
270-5741; Internet: aircanada.com


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