Air Canada reports July traffic



    MONTREAL, Aug. 6 /CNW Telbec/ - Air Canada reported a load factor for the
mainline of 82.5 per cent in July 2007. The mainline carrier flew 1.3 per cent
more revenue passenger miles (RPMs) in July 2007 than in July 2006, according
to preliminary traffic figures. Capacity increased by 2.7 per cent, resulting
in a load factor of 82.5 per cent, compared to 83.6 per cent in July 2006; a
decrease of 1.1 percentage points.
    Jazz, from which Air Canada purchases regional capacity, flew 8.5 per
cent more RPMs in July 2007 than in July 2006, according to preliminary
traffic figures. Capacity increased by 6.0 per cent, resulting in a load
factor of 74.4 per cent, compared to 72.7 per cent in July 2006; an increase
of 1.7 percentage points.
    Year over year, system traffic on a consolidated basis for Air Canada and
Jazz, rose 1.9 per cent on a capacity increase of 2.9 per cent, resulting in a
load factor of 81.8 per cent; compared to 82.7 per cent in 2006; a decrease of
0.9 percentage points.
    "On a combined basis with Jazz, system wide traffic increased almost
2 percentage points from the previous year as consumers continue to choose the
new Air Canada in growing numbers for its innovative fare products,
subscription passes and new cabin amenities as we renew the fleet," said
Montie Brewer, President and Chief Executive Officer. "For the month of July,
traffic continued to grow in all markets with the exception of the U.S.
transborder market where we responded with effective capacity management that
resulted in increased load factor year over year. The U.K. market showed some
weakness due to increased industry capacity while travellers continue to be
impacted by additional security measures and the doubling of the U.K departure
tax. I am particularly proud of our employees who continue to earn the loyalty
of our customers with the quality of their service, demonstrated by the fact
we exceeded on-time performance and customer satisfaction objectives for the
month. Indeed, it is our employees who were instrumental in Air Canada being
voted for the second time in three years as the Best Carrier in North America
in the world's largest passenger survey of over 14 million air travellers
world wide."

    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 June 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 MAINLINE
                           (Includes Jetz & Tier 3)
    -------------------------------------------------------------------------
                                JULY                     YEAR-TO-DATE
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   4,656   4,595    +1.3%     26,974  26,331    +2.4%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   5,643   5,497    +2.7%     32,808  32,265    +1.7%
    -------------------------------------------------------------------------
    Load Factor         82.5%   83.6%   -1.1 pts    82.2%   81.6%   +0.6 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,365   1,308    +4.4%      7,496   7,205    +4.0%
             ----------------------------------------------------------------
    Canada   ASMs      1,690   1,605    +5.3%      9,148   9,067    +0.9%
             ----------------------------------------------------------------
             Load
              Factor    80.8%   81.5%   -0.7 pts    81.9%   79.5%   +2.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        639     671    -4.8%      4,565   4,513    +1.2%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        784     832    -5.8%      5,753   5,660    +1.6%
    border   ----------------------------------------------------------------
             Load
              Factor    81.5%   80.6%   +0.9 pts    79.3%   79.7%   -0.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,369   1,361    +0.6%      7,131   6,976    +2.2%
             ----------------------------------------------------------------
    Atlantic ASMs      1,626   1,598    +1.8%      8,415   8,205    +2.6%
             ----------------------------------------------------------------
             Load
              Factor    84.2%   85.2%   -1.0 pts    84.7%   85.0%   -0.3 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        924     914    +1.1%      4,967   4,917    +1.0%
             ----------------------------------------------------------------
    Pacific  ASMs      1,127   1,068    +5.5%      5,919   5,887    +0.5%
             ----------------------------------------------------------------
             Load
              Factor    82.0%   85.6%   -3.6 pts    83.9%   83.5%   +0.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        359     341    +5.3%      2,815   2,720    +3.5%
    Latin    ---------------------------------------------------------------
    America  ASMs        416     394    +5.6%      3,573   3,446    +3.7%
    & Other  ---------------------------------------------------------------
             Load
              Factor    86.3%   86.5%   -0.2 pts    78.8%   78.9%   -0.1 pts
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                                JULY                     YEAR-TO-DATE
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)     395     364    +8.5%      2,471   2,117   +16.7%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)     531     501    +6.0%      3,322   2,946   +12.8%
    -------------------------------------------------------------------------
    Load Factor         74.4%   72.7%   +1.7 pts    74.4%   71.9%   +2.5 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        297     269   +10.4%      1,847   1,574   +17.3%
             ----------------------------------------------------------------
    Canada   ASMs        393     361    +8.9%      2,408   2,143   +12.4%
             ----------------------------------------------------------------
             Load
              Factor    75.6%   74.5%   +1.1 pts    76.7%   73.4%   +3.3 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs         98      95    +3.2%        624      543  +14.9%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        138     140    -1.4%        914      803  +13.8%
    border   ----------------------------------------------------------------
             Load
              Factor    71.0%   67.9%   +3.1 pts    68.3%    67.6%  +0.7 pts
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                                JULY                     YEAR-TO-DATE
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   5,051   4,959    +1.9%     29,445  28,448    +3.5%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   6,174   5,998    +2.9%     36,130  35,211    +2.6%
    -------------------------------------------------------------------------
    Load Factor         81.8%   82.7%   -0.9 pts    81.5%   80.8%   +0.7 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,662   1,577    +5.4%      9,343   8,779    +6.4%
             ----------------------------------------------------------------
    Canada   ASMs      2,083   1,966    +6.0%     11,556  11,210    +3.1%
             ----------------------------------------------------------------
             Load
              Factor    79.8%   80.2%   -0.4 pts    80.8%   78.3%   +2.5 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        737     766    -3.8%      5,189   5,056    +2.6%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        922     972    -5.1%      6,667   6,463    +3.2%
    border   ----------------------------------------------------------------
             Load
              Factor    79.9%   78.8%   +1.1 pts    77.8%   78.2%   -0.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      2,652   2,616    +1.4%     14,913  14,613    +2.1%
             ----------------------------------------------------------------
    Interna- ASMs
    tional    Load     3,169   3,060    +3.6%     17,907  17,538    +2.1%
             ----------------------------------------------------------------
             Factor     83.7%   85.5%   -1.8 pts    83.3%   83.3%    0.0 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; Internet: aircanada.com


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