Air Canada Reports October

Air Canada mainline flew 10.9 per cent
fewer revenue passenger miles (RPMs) in October 2003 than in October 2002,
according to preliminary traffic figures. Overall, capacity decreased by
9.4 per cent, resulting in a load factor of 73.2 per cent, compared to
74.4 per cent in October 2002; a decrease of 1.2 percentage points.
Jazz, Air Canada`s regional airline subsidiary, flew 2.2 per cent more
revenue passenger miles in October 2003 than in October 2002, according to
preliminary traffic figures. Capacity increased by 3.4 per cent, resulting in
a load factor of 57.5 per cent, compared to 58.2 per cent in October 2002; a
decrease of 0.7 percentage points.
“Consumer demand in October continued to strengthen with system traffic,
at 10.9% under the same month of last year, recording the smallest year-over-
year decline since April 2003. The domestic shortfall of 4.4% reflected our
2.6% reduction in seat mile capacity and large capacity increases by our
domestic competitors. The ongoing expansion of capacity by US mainline and
regional carriers also continued to put pressure on our US transborder traffic
while, on the Atlantic, strong UK and Germany demand drove our traffic up
4.2%,” said Rob Peterson, Executive Vice President and Chief Financial
Officer. “Travel on our Pacific routes, although still below last year,
maintained its steady improvement. As there is significant pent up demand in
Asia, we intend to restore in November and December much of the capacity we
cut earlier this year. Very strong leisure demand for the Caribbean and Mexico
in addition to rapid South America growth pushed traffic up 25.7% in the other
& charter category.”
This discussion contains certain forward-looking statements, which
involve a number of risks and uncertainties. As a result of many factors
including acts or potential acts of terrorism, international conflicts,
government regulations and government mandated restrictions on operations and
pricing, fuel prices, industry restructuring, labour negotiations, the
economic environment in general including foreign exchange and interest rates,
the airline competitive and pricing environment, industry capacity decisions
and new entrants as well as external events, actual results could differ from
expected results and the differences could be material.
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