Air Canada Clarifies Comments Made During Media Interviews January 24

Further to comments made by Air Canada CEO
Robert Milton during media interviews on January 24, Air Canada clarifies and
confirms the following:

As previously stated, Air Canada continues to consider a number of
options available to improve its balance sheet, including buying back debt
securities on the open market and raising new equity from private investors or
through public offerings. Other previously mentioned options include the
possible spinning-off of certain of its divisions or subsidiaries. Air Canada
has not made any decision with respect to any of these alternatives including
as to a new share issue or as to the timing of any such initiatives.
In addition, Air Canada has not been and is not currently providing any
guidance on its projected financial results. Generally, business trends are
pointing to improvement as the year progresses and Air Canada is cautiously
optimistic that this improvement should assist in the Corporation`s intended
return to profitability over the seasonally stronger quarters. However, no
comment will be made by Air Canada in respect of its financial performance
until the release of Air Canada`s annual results on February 7, 2002.