Air Canada Reports June Traffic

Air Canada flew 1.4 per cent fewer revenue
passenger miles (RPMs) in June 2001 than flown by Air Canada and Canadian
Airlines together in the same month of 2000, according to preliminary traffic
figures. Capacity increased by 1.3 per cent, resulting in a load factor of
75.0 per cent, compared with 77.1 per cent in June 2000.
According to Danielle Poudrette, Vice President Marketing, “June traffic
was down 1.4% from last year`s record high, in the context of weaker business
demand resulting from the economic slowdown and heightened domestic
competition. Traffic levels have also been affected by capacity redeployments
to new routes, which normally do not generate load factors as high as more
mature ones.

“The airline`s capacity remains tightly controlled: June`s ASM growth
reflects planning for seasonal traffic patterns as well as the timing of
aircraft deliveries and dispositions. One A330 and three B767`s were recently
put into service, while two older B767`s have been sublet to a third party.”

All Air Canada and Canadian mainline operating statistics are reported on
a combined basis.