Air Canada Reports July Traffic

MONTREAL, Aug. 12 /CNW/ - Air Canada flew 0.8 per cent less revenue
passenger miles (RPMs) in July 2002 than in July 2001, according to
preliminary traffic figures. Capacity decreased by 0.1 per cent, resulting in
a load factor of 76.2 per cent, compared to 76.8 per cent in July 2001; a
decrease of 0.6 percentage points.

“July`s results reflected a continuation of softer domestic traffic,
albeit at improved yields, and a weak US transborder marketplace offset by
strong international traffic levels. System revenue per available seat mile
(RASM) for the month is expected to show modest improvement,” said Rob
Peterson, Executive Vice President and Chief Financial Officer. “Employee and
asset productivity continued to rise sharply as overall seat mile capacity was
essentially unchanged while aircraft hours flown were reduced by 7.6% from the
level of July 2001, said Mr. Peterson”.