Air Canada And Canadian Airlines Corporation Report June Traffic, Air Canada Load Factor Highest On

Air Canada flew 15.5 per cent more revenue
passenger miles (RPMs) in June 2000 than in the same month of 1999, according
to preliminary traffic figures.  Capacity increased by 12.2 per cent, and the
airline achieved a record passenger load factor of 78.0 per cent, up
2.3 percentage points over June of last year.

Canadian Airlines Corporation, including its regional airlines, flew
15.5 per cent fewer RPMs on a 14.6% per cent reduction in capacity, producing
a load factor of 74.1 per cent.

According to Danielle Poudrette, Vice President, Marketing, ``Traffic
trends continued to be strong in the month of June.  Air Canada`s load factor
of 78% set a new record even with the addition of over 12% new capacity and
the introduction of 13 new routes in the month. Moreover, efforts to balance
traffic between Air Canada and Canadian are showing positive results, as
Canadian`s load factors resumed normal levels for this time of year.``

Canadian Airlines International Ltd. became a subsidiary of Air Canada on
July 6, 2000.  Their operating results will be reflected in Air Canada`s
income starting in the third quarter of this year.