Air Canada and Canadian Airlines Report July Traffic

Air Canada and Canadian Airlines flew 4.4 per
cent more revenue passenger miles (RPMs) in July 2000 than flown by the two
carriers in the same month of 1999, according to preliminary traffic figures.
Capacity increased by 3.4 per cent, resulting in a passenger load factor of
78.0 per cent, compared with 77.2 per cent in July 1999.

According to Danielle Poudrette, Vice President, Marketing, ``Strong
traffic for the month of July continued to increase load factors especially in
domestic and Atlantic markets. Similar load factors at Air Canada and Canadian
indicate our efforts to balance traffic between the two carriers are producing
results.``

Canadian Airlines International Ltd. became a subsidiary of Air Canada on
July 6, 2000. Canadian`s operating statistics will be reported with those of
Air Canada from this point forward.

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