Air Canada Reports Unconsolidated May Traffic

Air Canada flew 21.7 per cent more revenue
passenger miles (RPMs) in May 2000 than in the same month of 1999, according
to preliminary traffic figures.  Capacity increased by 15.7 per cent,
resulting in a passenger load factor of 76.4 per cent, compared with 72.6 per
cent in May 1999.

According to Danielle Poudrette, Vice President, Marketing, ``Traffic for
the month of May was very strong and exceeded the capacity change on domestic
and Atlantic markets, while meeting capacity change on the U.S. market.  While
traffic growth reached up to 30% year over year in the first two weeks of the
month, Air Canada made a concerted effort to divert some traffic to Canadian
Airlines in the last two weeks in order to better balance passenger load
factors at both airlines.`` System cargo traffic for the month rose 13.4 per
cent to 76 million revenue ton miles.