Air Canada Reports July Traffic

Air Canada mainline flew 13.4 percent
fewer revenue passenger miles (RPMs) in July 2003 than in July 2002, according
to preliminary traffic figures. Capacity decreased by 15.4 percent, resulting
in a load factor of 78.1 percent, compared to 76.2 percent in July 2002; an
increase of 1.9 percentage points.
Jazz, Air Canada`s regional airline subsidiary, flew 7.3 percent more
revenue passenger miles (RPMs) in July 2003 than in July 2002, according to
preliminary traffic figures. Capacity decreased by 7.1 percent, resulting in a
load factor of 62.3 percent, compared to 53.9 percent in July 2002; an
increase of 8.4 percentage points.
“The year-over-year traffic shortfall, which progressively declined for
the past two months, is a clear indication that the worst of the SARS related
traffic decline is behind us. In addition, the improved load factor, the first
increase in nine months, is a reflection of our ongoing efforts to better
match capacity with demand,” said Rob Peterson, Executive Vice President and
Chief Financial Officer.
“Domestic mainline traffic, reflecting pent up demand as well as lower
average fares, came in just under last year`s level while transatlantic demand
rose due to new services. U.S. transborder traffic remained weak within a very
competitive market characterized by major increases in U.S. carrier capacity.
While currently at a low level, Pacific demand is beginning to show
encouraging signs. In response, we announced last month the reinstatement of
all daily services to Asia. We remain, however, concerned with the weak
overall pricing environment which reflects the ongoing softness in the
business market as well as the continued reduction in travel demand
worldwide,” said Mr. Peterson.
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