Air Canada reports July traffic - Load Factor of 83.0 per cent, matching July 2005 record



    MONTREAL, Aug. 8 /CNW Telbec/ - For the month of July, Air Canada today
reported a load factor of 83.0 per cent on a consolidated basis with Jazz,
matching a July 2005 record, versus 81.8 per cent in July 2007, an increase of
1.2 percentage points. System traffic decreased 0.6 per cent on a capacity
decrease of 2.0 per cent system wide.
    The mainline carrier flew 0.1 per cent fewer revenue passenger miles
(RPMs) in July 2008 than in July 2007, according to preliminary traffic
figures. Capacity decreased by 1.8 per cent, resulting in a load factor of
84.0 per cent for the month compared to 82.5 per cent in July 2007; an
increase of 1.5 percentage points.
    Jazz, from which Air Canada purchases regional capacity, flew 7.1 per
cent fewer RPMs in July 2008 than in July 2007, according to preliminary
traffic figures. Capacity decreased by 4.3 per cent, resulting in a load
factor of 72.1 per cent, compared to 74.2 per cent in July 2007; a decrease of
2.1 percentage points.
    "With a load factor of 83 per cent for the month of July, Air Canada
matched a previous record for the month set in July 2005," said Montie Brewer,
President and Chief Executive Officer. "As expected, demand in North America
has softened somewhat as the industry adjusts fares to reflect record prices
for fuel. Demand on U.S. transborder routes was also impacted by the weakness
in the U.S. economy. However, through prudent capacity management, we adjusted
operations effectively. I am especially proud of our employees who again
exceeded On-Time Performance and Customer Satisfaction objectives for the
month as they work hard to earn the loyalty of our customers."

    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)
    -------------------------------------------------------------------------
                               JULY                    Year-To-Date
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  4,653   4,656    -0.1%      27,772  26,975    +3.0%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  5,539   5,642    -1.8%      33,684  32,808    +2.7%
    -------------------------------------------------------------------------
    Load Factor        84.0%   82.5%   +1.5 pts     82.4%   82.2%   +0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs     1,343   1,365    -1.6%       7,740   7,497    +3.2%
             ----------------------------------------------------------------
    Canada   ASMs     1,686   1,689    -0.2%       9,489   9,147    +3.7%
             ----------------------------------------------------------------
             Load
              Factor   79.7%   80.8%   -1.1 pts     81.6%   82.0%   -0.4 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs       573     639   -10.3%       4,308   4,565    -5.6%
    U.S.     ----------------------------------------------------------------
     Trans-  ASMs       716     784    -8.7%       5,431   5,755    -5.6%
     border  ----------------------------------------------------------------
             Load
              Factor   80.0%   81.5%   -1.5 pts     79.3%   79.3%    0.0 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs     1,374   1,369    +0.4%       7,231   7,131    +1.4%
             ----------------------------------------------------------------
    Atlantic ASMs     1,551   1,626    -4.6%       8,563   8,415    +1.8%
             ----------------------------------------------------------------
             Load
              Factor   88.6%   84.2%   +4.4 pts     84.4%   84.7%   -0.3 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs       917     924    -0.8%       5,050   4,967    +1.7%
             ----------------------------------------------------------------
    Pacific  ASMs     1,075   1,127    -4.6%       5,973   5,919    +0.9%
             ----------------------------------------------------------------
             Load
              Factor   85.3%   82.0%   +3.3 pts     84.5%   83.9%   +0.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs       446     359   +24.2%       3,443   2,815   +22.3%
    Latin    ----------------------------------------------------------------
     America ASMs       511     416   +22.8%       4,228   3,572   +18.4%
     & Other ----------------------------------------------------------------
             Load
              Factor   87.3%   86.3%   +1.0 pts     81.4%   78.8%   +2.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                               JULY                    Year-To-Date
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)    367     395    -7.1%       2,456   2,470    -0.6%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)    509     532    -4.3%       3,340   3,322    +0.5%
    -------------------------------------------------------------------------
    Load Factor        72.1%   74.2%   -2.1 pts     73.5%   74.4%   -0.9 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs       261     297   -12.1%       1,808   1,846    -2.1%
             ----------------------------------------------------------------
    Canada   ASMs       347     394   -11.9%       2,365   2,409    -1.8%
             ----------------------------------------------------------------
             Load
              Factor   75.2%   75.4%   -0.2 pts     76.4%   76.6%   -0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs       106      98    +8.2%         648     624    +3.8%
             ----------------------------------------------------------------
    U.S.
     Trans-  ASMs       162     138   +17.4%         975     913    +6.8%
     border ----------------------------------------------------------------
             Load
              Factor   65.4%   71.0%   -5.6 pts     66.5%   68.3%   -1.8 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                               JULY                    Year-To-Date
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  5,020   5,051    -0.6%      30,228  29,445    +2.7%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  6,048   6,174    -2.0%      37,024  36,130    +2.5%
    -------------------------------------------------------------------------
    Load Factor        83.0%   81.8%   +1.2 pts     81.6%   81.5%   +0.1 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs     1,604   1,662    -3.5%       9,548   9,343    +2.2%
             ----------------------------------------------------------------
    Canada   ASMs     2,033   2,083    -2.4%      11,854  11,556    +2.6%
             ----------------------------------------------------------------
             Load
              Factor  78.9%    79.8%   -0.9 pts     80.5%   80.8%   -0.3 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs      679      737    -7.9%       4,956   5,189    -4.5%
    U.S.     ----------------------------------------------------------------
     Trans-  ASMs      878      922    -4.8%       6,406   6,668    -3.9%
     border  ----------------------------------------------------------------
             Load
              Factor  77.3%    79.9%   -2.6 pts     77.4%   77.8%   -0.4 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
             RPMs    2,737    2,652    +3.2%      15,724  14,913    +5.4%
    Interna- ----------------------------------------------------------------
     tional  ASMs    3,137    3,169    -1.0%      18,764  17,906    +4.8%
             ----------------------------------------------------------------
             Load
              Factor  87.2%    83.7%   +3.5 pts     83.8%   83.3%   +0.5 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; aircanada.com


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