Air Canada Reports May Traffic

7th Jun 2002

Air Canada flew 4.1 per cent more revenue
passenger miles (RPMs) in May 2002 than in May 2001, according to preliminary
traffic figures. Capacity decreased by 0.3 per cent, resulting in a load
factor of 76.4 per cent, compared to 73.1 per cent in May 2001; an improvement
of 3.3 percentage points.

“The performance on international routes, apart from the US transborder,
was particularly encouraging,” said Rob Peterson, Executive Vice President and
Chief Financial Officer. “Transatlantic traffic rose 5.6 per cent reflecting
strong demand for the United Kingdom after the foot and mouth concerns of
early 2001, while transpacific growth, up 21.8 per cent, continued to
accelerate due to an increase in Air Canada`s market share in addition to
robust demand from Japan, China and Hong Kong.”



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