Air Canada Reduces Domestic Fuel Surcharge by Fifty Per Cent

20th Nov 2001

Air Canada announced today a 50 per cent
reduction to its domestic fuel surcharge in response to lower jet fuel prices.
The airline`s domestic fuel surcharge of $15.00 CDN one way will be reduced to
$7.50 CDN on all tickets issued as of November 21, 2001 for travel within
Canada. When the fuel surcharge was introduced, Air Canada indicated that it
would be adjusted according to market fluctuations in fuel prices.

Air Canada`s reduced domestic fuel surcharge compares to the $18.60 USD
($27.16 CDN) one way domestic fuel surcharge, currently being charged by major
US airlines. The surcharge will continue to apply in the transborder market.

Air Canada will continue to closely monitor jet fuel prices and will
adjust the surcharge accordingly.



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