Air Canada reports record May traffic



    Mainline passenger load factor of 83.8% - highest ever for May

    MONTREAL, June 6 /CNW Telbec/ - Air Canada reported a record load factor
for the mainline of 83.8 per cent in May 2007, the highest ever for the month.
    The mainline carrier flew 0.2 per cent fewer revenue passenger miles
(RPMs) in May 2007 than in May 2006, according to preliminary traffic figures.
Capacity decreased by 1.0 per cent, resulting in a load factor of
83.8 per cent, compared to 83.2 per cent in May 2006; an increase of
0.6 percentage point.
    Jazz, from which Air Canada purchases regional capacity, flew
19.8 per cent more RPMs in May 2007 than in May 2006, according to preliminary
traffic figures. Capacity increased by 16.9 per cent, resulting in a load
factor of 74.6 per cent, compared to 72.8 per cent in May 2006; an increase of
1.8 percentage points.
    Year over year, system traffic on a consolidated basis for Air Canada and
Jazz, rose 1.3 per cent on a capacity increase of 0.6 per cent, resulting in a
load factor of 82.8 per cent; an increase of 0.5 percentage points.
    "Air Canada achieved a record load factor of 83.8 per cent for the month
of May. Traffic has remained strong, particularly in the domestic market where
traffic was up five per cent and our load factor up nearly two per cent on a
combined basis with Jazz. Our record load factor is also a testament to our
disciplined approach to capacity growth in a buoyant travel market," said
Montie Brewer, President and Chief Executive Officer. "The ongoing deliveries
of new and refurbished aircraft are enabling us to offer the latest amenities
to our customers, who clearly like the new Air Canada. As well, our new
revenue model, with à la carte pricing and multi-trip subscription flight pass
products, makes it easy and affordable to fly with Air Canada. Finally, I
would like to thank our employees who continue to earn our customers' loyalty
with the quality of our service, demonstrated by the fact we exceeded on-time
performance and customer satisfaction objectives for May."
    NOTE: Beginning in May 2007, Air Canada has adjusted the way it reports
its monthly traffic results. Tier 3 flying is now included in mainline results
along with Jetz. Charter flying is apportioned among the respective market
segments. The May 2006 and year-to-date traffic numbers have been adjusted to
reflect these changes for year-over-year comparisons.

    This discussion contains certain forward-looking statements, which
involve a number of risks and uncertainties. As a result of many factors
including acts or potential acts of terrorism, international conflicts,
government regulations and government mandated restrictions on operations and
pricing, fuel prices, industry restructuring, labour negotiations, the
economic environment in general including foreign exchange and interest rates,
the airline competitive and pricing environment, industry capacity decisions
and new entrants as well as external events, actual results could differ from
expected results and the differences could be material.


    
                                 AIR CANADA

    -------------------------------------------------------------------------
                             AIR CANADA MAINLINE
                               (Includes Jetz)
    -------------------------------------------------------------------------
                                 MAY                   Year-To-Date
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   3,751   3,761    -0.2%     18,200  17,664    +3.0%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   4,479   4,523    -1.0%     22,229  21,887    +1.6%
    -------------------------------------------------------------------------
    Load Factor         83.8%   83.2%   +0.6 pts    81.9%   80.7%   +1.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,114   1,098    +1.4%      4,934   4,720    +4.5%
             ----------------------------------------------------------------
    Canada   ASMs      1,362   1,375    -0.9%      5,972   5,975     0.0%
             ----------------------------------------------------------------
             Load
              Factor    81.8%   79.9%   +1.9 pts    82.6%   79.0%   +3.6 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        567     561    +1.1%      3,360   3,278    +2.5%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        698     709    -1.5%      4,270   4,108    +3.9%
    border   ----------------------------------------------------------------
             Load
              Factor    81.2%   79.1%   +2.1 pts    78.7%   79.8%   -1.1 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,086   1,111    -2.2%      4,460   4,342    +2.7%
             ----------------------------------------------------------------
    Atlantic ASMs      1,237   1,266    -2.2%      5,292   5,200    +1.8%
             ----------------------------------------------------------------
             Load
              Factor    87.8%   87.8%    0.0 pts    84.3%   83.5%   +0.8 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        701     714    -1.8%      3,294   3,222    +2.2%
             ----------------------------------------------------------------
    Pacific  ASMs        811     825    -1.6%      3,929   3,902    +0.7%
             ----------------------------------------------------------------
             Load
              Factor    86.4%   86.6%   -0.2 pts    83.8%   82.6%   +1.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        283     276    +2.5%      2,152   2,102    +2.4%
    Latin    ---------------------------------------------------------------
    America  ASMs        370     348    +6.1%      2,767   2,702    +2.4%
    & Other  ---------------------------------------------------------------
             Load
              Factor    76.6%   79.3%   -2.7pts     77.8%   77.8%    0.0 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                                 MAY                   Year-To-Date
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)     369     308   +19.8%      1,697   1,417   +19.8%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)     495     424   +16.9%      2,296   1,992   +15.3%
    -------------------------------------------------------------------------
    Load Factor         74.6%   72.8%   +1.8 pts    73.9%   71.1%   +2.8 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        280     226   +24.2%      1,262   1,058   +19.3%
             ----------------------------------------------------------------
    Canada   ASMs        364     304   +19.5%      1,650   1,454   +13.5%
             ----------------------------------------------------------------
             Load
              Factor    77.1%   74.2%   +2.9 pts    76.5%   72.7%   +3.8 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs         89      83    +7.8%        435     360   +21.0%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        132     119   +10.3%        646     538   +20.1%
    border   ----------------------------------------------------------------
             Load
              Factor    67.7%   69.2%   -1.5 pts    67.3%   66.8%   +0.5 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                                 MAY                   Year-To-Date
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   4,121   4,069    +1.3%     19,897  19,081    +4.3%
    Capacity
     (ASMs millions)   4,974   4,946    +0.6%     24,525  23,879    +2.7%
    Load Factor         82.8%   82.3%   +0.5 pts    81.1%   79.9%   +1.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,394   1,324    +5.3%      6,196   5,777    +7.2%
    Canada   ASMs      1,726   1,679    +2.8%      7,622   7,429    +2.6%
             Load
              Factor    80.8%   78.9%   +1.9 pts    81.3%   77.8 %  +3.5 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        656     643    +2.0%      3,795   3,638    +4.3%
    U.S.
    Trans-   ASMs        830     829    +0.2%      4,916   4,646    +5.8%
    border
             Load
              Factor    79.0%   77.6%   +1.4 pts    77.2%   78.3%   -1.1 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      2,071   2,102    -1.5%      9,906   9,666    +2.5%
    Interna- ASMs      2,418   2,439    -0.8%     11,987  11,804    +1.6%
    tional
             Load
              Factor    85.6%   86.2%   -0.6 pts    82.6%   81.9%   +0.7 pts
    -------------------------------------------------------------------------
    
    %SEDAR: 00024384EF




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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