Air Canada reports June traffic; Traffic grows at Canada's largest airline



    MONTREAL, July 7 /CNW Telbec/ - For the month of June, system traffic on
a consolidated basis for Air Canada and Jazz rose 1.9 per cent on a capacity
increase of 2.7 per cent system wide. This resulted in a load factor of
82.2 per cent versus 82.8 per cent in June 2007.
    The mainline carrier flew 2.8 per cent more revenue passenger miles
(RPMs) in June 2008 than in June 2007, according to preliminary traffic
figures. Capacity increased by 3.3 per cent, resulting in a load factor of
83.1 per cent for the month compared to 83.4 per cent in June 2007; a decrease
of 0.3 percentage points.
    Jazz, from which Air Canada purchases regional capacity, flew
7.9 per cent fewer RPMs in June 2008 than in June 2007, according to
preliminary traffic figures. Capacity decreased by 3.6 per cent, resulting in
a load factor of 73.2 per cent, compared to 76.6 per cent in June 2007; a
decrease of 3.4 percentage points.
    "For the month of June, Air Canada reported continued growth in traffic
with an increase of 1.9 per cent on a combined basis with Jazz," said Montie
Brewer, President and Chief Executive Officer. "Our sustained growth year over
year was led by the domestic Canada and international markets where we
continue to see strong demand. I am especially proud of our employees who once
again exceeded On-Time Performance objectives for the month as they work hard
to earn the loyalty of our customers as we enter 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)
    -------------------------------------------------------------------------
                               JUNE                    YEAR-TO-DATE
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  4,234   4,118    +2.8%      23,119  22,319    +3.6%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  5,097   4,935    +3.3%      28,144  27,165    +3.6%
    -------------------------------------------------------------------------
    Load Factor        83.1%   83.4%   -0.3 pts     82.1%   82.2%   -0.1 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    1,261   1,197    +5.3%       6,396   6,131    +4.3%
             ----------------------------------------------------------------
    Canada    ASMs    1,571   1,486    +5.7%       7,803   7,458    +4.6%
             ----------------------------------------------------------------
              Load
               Factor  80.3%   80.6%   -0.3 pts     82.0%   82.2%   -0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      492     566   -13.1%       3,736   3,926    -4.8%
    U.S.     ----------------------------------------------------------------
     Trans-   ASMs      636     700    -9.1%       4,714   4,970    -5.2%
     border  ----------------------------------------------------------------
              Load
               Factor  77.4%   80.9%   -3.5 pts     79.3%   79.0%   +0.3 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    1,275   1,302    -2.1%       5,856   5,763    +1.6%
             ----------------------------------------------------------------
    Atlantic  ASMs    1,459   1,497    -2.5%       7,012   6,789    +3.3%
             ----------------------------------------------------------------
              Load
               Factor  87.4%   87.0%   +0.4 pts     83.5%   84.9%   -1.4 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      823     749    +9.9%       4,133   4,043    +2.2%
             ----------------------------------------------------------------
    Pacific   ASMs      952     863   +10.3%       4,898   4,792    +2.2%
             ----------------------------------------------------------------
              Load
               Factor  86.4%   86.8%   -0.4 pts     84.4%   84.4%   +0.0 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      383     304   +26.0%       2,998   2,456   +22.1%
    Latin    ----------------------------------------------------------------
     America  ASMs      479     389   +23.1%       3,717   3,156   +17.8%
     & Other ----------------------------------------------------------------
              Load
               Factor  80.0%   78.1%   +1.9 pts     80.7%   77.8%   +2.9 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                               JUNE                    YEAR-TO-DATE
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)    349     379    -7.9%       2,089   2,076    +0.6%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)    477     495    -3.6%       2,832   2,791    +1.5%
    -------------------------------------------------------------------------
    Load Factor        73.2%   76.6%   -3.4 pts     73.8%   74.4%   -0.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      248     288   -13.9%       1,548   1,550    -0.1%
             ----------------------------------------------------------------
    Canada    ASMs      325     365   -11.0%       2,018   2,015    +0.1%
             ----------------------------------------------------------------
              Load
               Factor  76.3%   78.9%   -2.6 pts     76.7%   76.9%   -0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      101      91   +11.0%         541     526    +2.9%
    U.S.     ----------------------------------------------------------------
     Trans-   ASMs      152     130   +16.9%         814     776    +4.9%
     border  ----------------------------------------------------------------
              Load
               Factor  66.4%   70.0%   -3.6 pts     66.5%   67.8%   -1.3 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                               JUNE                    YEAR-TO-DATE
                     --------------------------------------------------------
                       2008    2007  Change         2008    2007  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  4,583   4,497    +1.9%      25,208  24,395    +3.3%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  5,574   5,430    +2.7%      30,976  29,956    +3.4%
    -------------------------------------------------------------------------
    Load Factor        82.2%   82.8%   -0.6 pts     81.4%   81.4%    0.0 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    1,509   1,485    +1.6%       7,944   7,681    +3.4%
             ----------------------------------------------------------------
    Canada    ASMs    1,896   1,851    +2.4%       9,821   9,473    +3.7%
             ----------------------------------------------------------------
              Load
               Factor  79.6%   80.2%   -0.6 pts     80.9%   81.1%   -0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      593     657    -9.7%       4,277   4,452    -3.9%
    U.S.     ----------------------------------------------------------------
     Trans-   ASMs      788     830    -5.1%       5,528   5,746    -3.8%
     border  ----------------------------------------------------------------
              Load
               Factor  75.3%   79.2%   -3.9 pts     77.4%   77.5%   -0.1 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs    2,481   2,355    +5.4%      12,987  12,262    +5.9%
             ----------------------------------------------------------------
    Interna-  ASMs    2,890   2,749    +5.1%      15,627  14,737    +6.0%
     tional  ----------------------------------------------------------------
              Load
               Factor  85.8%   85.7%   +0.1 pts     83.1%   83.2%   -0.1 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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