Air Canada Reports January Traffic

Air Canada and Canadian Airlines flew 15.2 per
cent more revenue passenger miles (RPMs) in January 2001 than flown by the two
carriers in the same month of 2000, according to preliminary traffic figures.
Capacity increased by 5.8 per cent, resulting in a passenger load factor of
67.1 per cent, compared with 61.6 per cent in January 2000.

According to Lise Fournel, Executive Vice President, Commercial, “System-
wide load factor was up 5.5 percentage points over January 2000. Last year`s
January load factor was a low base for comparison as it was negatively
affected in the early part of the month by the millennium change and further
tempered by capacity additions. Leisure traffic remains strong and contributed
to the load factor increase this year.”

“Air Canada remains focused on optimizing asset utilization and we are
continuing to adjust capacity to achieve zero growth for the year 2001.”

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