Air Canada Reports July Traffic

Air Canada flew 1.0 per cent more revenue
passenger miles (RPMs) in July 2001 than in July 2000, according to
preliminary traffic figures. Capacity increased by 2.5 per cent, resulting in
a load factor of 76.8 per cent, compared with 77.9 per cent in July 2000.

According to Lise Fournel, Executive Vice President, Commercial,
“Although July traffic was up 1% over the record levels of last year,
systemwide load factor declined as traffic growth underran the capacity change
on all services except Pacific. The capacity increase resulted from increased
aircraft utilization as well as from aircraft deliveries timed to coincide
with the high summer period, partially offset by the removal of aircraft from
the fleet. We are still experiencing the effects of weak business travel
expenditures.

“We continue to manage capacity to align availability with market demand
and stimulate new traffic. Our target for flat capacity growth for the full
year remains in effect.”
——-