Air Canada Reports August Traffic

Air Canada mainline flew 13.8 percent
fewer revenue passenger miles (RPMs) in August 2003 than in August 2002,
according to preliminary traffic figures. Capacity decreased by 12.5 percent,
resulting in a load factor of 80.6 percent, compared to 81.9 percent in August
2002; a decrease of 1.3 percentage points.
Jazz, Air Canada`s regional airline subsidiary, flew 7.8 percent more
revenue passenger miles (RPMs) in August 2003 than in August 2002, according
to preliminary traffic figures. Capacity decreased by 1.6 percent, resulting
in a load factor of 63.3 percent, compared to 57.8 percent in August 2002; an
increase of 5.5 percentage points.
“The recovery in traffic is continuing, however the results for the month
were negatively impacted by the August 14th electrical blackout affecting
northeastern United States and southern Ontario, including Toronto, our main
hub,” said Rob Peterson, Executive Vice President and Chief Financial Officer.

“Transatlantic traffic continued to expand for the third consecutive
month while the transpacific load factor of 92.8% hit an all time high for
these routes indicating that our accelerated service reinstatement to Asia
will be well received. We are beginning to see some indications of
strengthening in yields but remain concerned with the weak business market,”
said Mr. Peterson.
——-