Air Canada Reports Traffic

Air Canada flew 19.0 per cent more revenue
passenger miles (RPMs) in September 2002 than in September 2001, according to
preliminary traffic figures. Capacity increased by 10.3 per cent, resulting in
a load factor of 74.5 per cent, compared to 69.0 per cent in September 2001;
an increase of 5.5 percentage points.

“Year-over-year comparisons were affected by the events of September 11,
2001, which resulted in a three-day suspension of operations, a significant
decline in passenger demand and a subsequent reduction in capacity. In
comparison to September 2000, traffic declined 2.6 per cent while capacity was
reduced by 4.1 per cent. Air Canada`s September 2002 load factor, the second
highest among major North American carriers, rose 1.1 percentage points over
that of September 2000,” said Rob Peterson, Executive Vice President and Chief
Financial Officer.