FIRST QUARTER OVERVIEW

    - Operating loss of $188 million compared to an operating loss (before a
      provision for cargo investigations and proceedings) of $12 million in
      the first quarter of 2008.
    - Passenger revenue decreased $300 million or 13 per cent from the first
      quarter of 2008 due to a 10.9 per cent decrease in traffic and, to a
      lesser extent, a 2.3 per cent decline in yield.
    - RASM decreased 3 per cent from the first quarter of 2008, primarily due
      to the decline in yield.
    - Unit cost increased 5 per cent from the first quarter of 2008, largely
      due to the negative impact of the weaker Canadian dollar versus the
      U.S. dollar.
    - Net loss of $400 million compared to a net loss of $288 million in the
      first quarter of 2008. The net loss in the first quarter of 2008
      included a provision of $125 million related to cargo investigations
      and proceedings.
    - EBITDAR of $57 million, a decrease of $165 million from EBITDAR (before
      the provision for cargo investigations and proceedings) of $222 million
      in the same quarter of 2008.
    - Cash, cash equivalents and short-term investments of $1.1 billion at
      March 31, 2009.MONTREAL, May 8 /CNW Telbec/ - Air Canada today reported an operating
loss of $188 million for the first quarter of 2009 compared to an operating
loss (before a provision for cargo investigations and proceedings) of $12
million in the first quarter of 2008. A net loss of $400 million in the first
quarter of 2009 included losses on foreign exchange of $101 million. A net
loss of $288 million in the first quarter of 2008 included a provision for
cargo investigations and proceedings of $125 million and losses on foreign
exchange of $89 million.
    Compared to the first quarter of 2008, passenger revenues decreased $300
million or 13 per cent to $2,011 million in the first quarter of 2009 due to a
decrease in traffic and, to a lesser extent, a decline in yield. A weakened
economy, a significant reduction in business travel, and competitive pricing
activities were factors in the decrease in system passenger revenues. In the
first quarter of 2009, the airline reduced overall capacity by 10.3 per cent
compared to the previous year's quarter. However, traffic declined by 10.9 per
cent in the quarter, resulting in a passenger load factor 0.5 percentage
points lower than the previous year's quarter.
    System yield decreased 2.3 per cent from the first quarter of 2008,
reflecting weak passenger demand, reduced high-yield business travel and
discounting activities to stimulate traffic. System revenue per available seat
mile (RASM) decreased 3.0 per cent from the first quarter of 2008 mainly due
to the yield decline.
    Compared to the first quarter of 2008, operating expenses decreased $160
million or 6 per cent from the first quarter of 2008. This reduction in
operating expenses was achieved in spite of $170 million in additional expense
related to a weaker Canadian dollar versus the US dollar.
    Unit cost in the first quarter of 2009, as measured by operating expense
per available seat mile (CASM), increased 5.0 per cent over the first quarter
of 2008. Excluding fuel expense, CASM increased 9.4 per cent year-over-year,
in large part due to the significantly weaker Canadian dollar versus the US
dollar compared to the first quarter of 2008. The capacity reduction was also
a factor in the year-over-year increase in CASM as Air Canada's cost structure
is such that its fixed costs do not fluctuate proportionately with changes in
capacity in the short term. Another factor was the higher ownership costs
reflecting Air Canada's investment in new aircraft.
    The 9.4 per cent increase in CASM for the first quarter of 2009,
excluding fuel expense, was less than the projected increase of between 13.5
to 14.5 per cent compared to the same period in 2008 that was provided in the
Corporation's news release dated February 13, 2009. The difference is
primarily attributable to the fact that certain operating expenses recorded in
the first quarter of 2009 were lower than anticipated. These expenses included
pension and post-retirement benefits, aircraft maintenance, aircraft rent,
capacity purchase fees paid to Jazz, commissions and expenses related to
ground packages at Air Canada Vacations.
    The net loss for the first quarter of $400 million included losses on
foreign exchange of $101 million. This compared to a net loss of $288 million
in the first quarter of 2008 which included the provision for cargo
investigations and proceedings of $125 million and losses on foreign exchange
of $89 million. EBITDAR amounted to $57 million, a decrease of $165 million
from the first quarter of 2008.
    Air Canada reported a loss per share (basic and diluted) of $4.00 on an
unadjusted basis. On an adjusted basis, the airline reported a loss per share
(basic and diluted) of $2.99. Loss per share is adjusted to remove the losses
on foreign exchange of $101 million.
    Said Calin Rovinescu, President and Chief Executive Officer, "While fuel
prices have declined from last year's record levels to provide some relief
from falling demand, the airline industry in general, and certainly Air
Canada, continue to face a very difficult economic environment.
    "Since taking the helm of Air Canada as CEO just five weeks ago, I have
been focused on Air Canada's immediate priorities over and above the impact of
this long and unrelenting recession. We have a strong management team in place
and together, we are tackling each priority one by one. They are: obtaining
pension funding relief, building liquidity, finding creative revenue
generation while working hard to earn customer loyalty, reducing unit costs to
reach competitive cost levels and, in the longer term, achieving acceptable
margins by creating value for customers and shareholders through profitable
growth.
    "First, we must obtain pension funding relief. We are firmly committed to
finding a way to maintain Air Canada's defined benefit pension plans without
restructuring the pension benefit formula. However, an interim pension funding
solution is necessary until the federal government enacts permanent changes to
pension regulations. We are in discussions with our unions and the federal
government to find an alternative funding solution.
    "Our second priority is to rebuild cash levels to see us through the
downturn. We are in on-going discussions with potential lenders on new sources
of financing. There is no doubt that credit markets remain very tight.
However, Air Canada has significant assets of interest to lenders as well as a
number of key corporate and commercial partners that derive benefit from a
financially strong Air Canada.
    "Our third priority is finding creative sources of revenue generation.
The drop in higher yielding business traffic calls for a different strategy
and that means looking at new route opportunities, product offerings and
fares. We will also be further leveraging our partnership with Aeroplan, such
as through the recent agreement to make an additional 250,000 seats available
to Aeroplan members with the triple objectives of raising revenue, earning
customer loyalty and differentiating our brand from the competition. Other
recent customer-focused measures we have taken include the introduction of our
Low Fare Guarantee and the elimination of call centre fees. We may be in a
low-fare environment but that does not mean we will concede market share to
our competitors without looking for value added ways to preserve it.
    "Fourth, Air Canada's unit costs are simply not competitive. While
progress has already been made in identifying more than $250 million in cost
reduction opportunities throughout the company, more work remains to be done.
Our unit revenues have always been much higher than that of our competitors
and while premium customers will continue to be a priority market for us, we
cannot rely on this market segment to fully cover the higher costs in the
future.
    "Looking forward, our longer-term objective is a transformation of the
company to ensure that we create and provide products that customers value and
deliver a level of service that secures their loyalty, all at a cost that
supports profitability and growth and rewards our shareholders. This means
engaging our employees in this transformation. My intention is to foster a
culture where individual initiative is both encouraged and rewarded, where an
empowering "just do it" attitude is at the core of every employee.
    "The global economy will inevitably rebound. My role as CEO is to ensure
that Air Canada manages through this economic downturn, is well positioned to
prosper when growth resumes, has access to adequate liquidity and is able to
deliver solid investment performance for shareholders. Air Canada has many
strengths. We have a powerful brand franchise, a newly refurbished fleet - one
of the youngest in North America - a far-reaching network anchored by
well-positioned hubs, strong international Star Alliance partners, employees
with a solid reputation for professionalism, not to mention the value of our
partnership with Aeroplan, one of the premier loyalty programs in the world.
These are strong assets which can be deployed to help us through the short
term and position us for long-term success," concluded Mr. Rovinescu.

    Pension Update
    --------------

    As at December 31, 2008, the Corporation reported that the solvency
deficit as at January 1, 2009 in the registered pension plans, which is used
to determine funding requirements, was estimated to be approximately $3,200
million. During the first quarter of 2009, as a result of updated information
regarding the annuity rate to be applied in discounting the pension
obligations, this estimate has been revised to $2,850 million.
    In March 2009, the Government of Canada proposed regulations to implement
pension measures for the purpose of providing temporary solvency funding
relief for federally regulated defined benefit pension plans. The proposals as
currently drafted include increasing the current limit of 110% for smoothing
asset valuation fluctuations over five years to 115% for 2009 and increasing
the period for funding a solvency deficiency from five years to ten years,
subject to certain conditions, including the imposition of deemed trusts over
deferred funding provided through such temporary relief.
    The Corporation continues to assess the impact of these measures which
are expected to be adopted through final regulations not yet in place.
However, there can be no assurance that the proposed relief will be
implemented at all or in a manner which would permit the Corporation to
benefit from temporary solvency funding relief. The Corporation continues to
monitor the government's actions and to dialogue with government officials on
this matter. Until the government finalizes and implements its proposal and
the funding valuation is completed during the second quarter of 2009,
uncertainty as to the amount and timing of additional pension funding
continues to exist. Any increase in funding obligations for 2009 would be paid
in the second half of the year as the funding in the first half of the year is
based on the January 1, 2008 actuarial valuation reports.
    In addition, management is in ongoing discussions with its Canadian-based
unions to consider certain funding alternatives including a moratorium and
other conditions on funding the pension deficits. These may require government
and/or regulatory approval and there can be no assurance that an agreement
will be reached between the Corporation and the unions on this matter or that
government and/or regulatory approval would be obtained, including in a timely
manner so as to provide the Corporation with required funding relief.

    Liquidity Update
    ----------------

    The challenges that Air Canada faced in 2008 and which continue in 2009
include the weakened demand for air travel as a result of the recession,
continuing interest payments and debt payments and the funding of the
Corporation's pension plans. During the first quarter of 2009, demand for the
Corporation's air travel and cargo services continued to weaken in both
domestic and international markets, and the Corporation expects demand to
continue to be a challenge for the remainder of the year. In 2009, the
Corporation's major collective agreements expire and uncertainties exist with
respect to the outcome of these negotiations. In addition, the credit markets
continue to be constrained raising concerns about available funding for a
number of companies, including Air Canada. The H1N1 virus is a new factor that
may affect demand for air travel. To date, the impact on the Corporation's
operations has been minimal. The Corporation is monitoring this risk; however,
it is unable to predict if the impact on its operations will be significant.
These factors have had an impact on the liquidity risk of Air Canada.
    During 2008, management undertook various initiatives and developed a
plan to manage its operating and liquidity risks taking into account the
prevailing economic conditions, including cost containment initiatives,
capacity adjustments with the objective of matching capacity to passenger
demand and new financing arrangements. In 2009, Air Canada is continuing to
pursue its strategy to improve its liquidity position. During the first
quarter of 2009, Air Canada received aggregate net proceeds of $177 million
under a spare parts financing, spare engine financing and sale and leaseback
transaction.
    The Corporation has certain assets including aircraft such as its Boeing
777 aircraft and Embraer aircraft, real estate, airport slots and accounts
receivable, certain of which have estimated fair values in excess of the
respective loan values, and which may be available to support additional
financings or other similar transactions. Management has commenced discussions
with certain suppliers, financial institutions, leasing companies, government
agencies and other stakeholders on alternatives for obtaining additional
financing.
    Given the current and continuing instability of credit markets and
economic conditions, there can be no assurance that the Corporation will be
able to conclude further financing or other similar transactions, including on
acceptable terms or that the Corporation's assets will generate the expected
proceeds. The Corporation may be required to obtain consent from current
lenders and/or other third parties for certain such transactions.
    At March 31, 2009, Air Canada had cash and cash equivalents and
short-term investments of $1,087 million ($1,005 million as at December 31,
2008), which represents approximately 10 per cent of Air Canada's 2008 annual
operating revenues. At April 30, 2009, Air Canada had cash and cash
equivalents and short-term investments of approximately $1 billion. Management
continues to closely monitor the cash flows to ensure that Air Canada has
adequate cash resources to meet its obligations and commitments when they
become due.
    The Corporation has various agreements for the processing of customer
credit card transactions, as further described in Note 1 to the 2008 annual
consolidated financial statements of the Corporation. Under the terms of
credit card processing agreements with one of its principal credit card
processors, the credit card processing company may withhold payment of funds
to Air Canada ("the deposit") upon the occurrence of certain events
("triggering events"). Under these triggering events, beginning at the end of
the second quarter 2009, the unrestricted cash required in order to avoid a
deposit could be as much as $1.3 billion. Unless sufficient new financing is
secured and pension relief is obtained and the credit card processing company
and Air Canada agree to revised triggers, the Corporation expects that the
Cash and cash equivalents and Short-term investments would be substantially
reduced over the next 12 months as a result of required deposits under the
current terms of the agreement with the credit card processing company. The
Corporation is currently renegotiating certain terms and conditions, including
relating to triggering events, with the credit card processing company. There
can be no assurance that an agreement will be reached between the Corporation
and the credit card processing company, including in a timely manner.

    Current Outlook
    ---------------

    Air Canada expects its full year 2009 system capacity, as measured in
available seat miles (ASM), to decline by between 4 per cent and 5 per cent
compared to the full year 2008 (as opposed to the system ASM capacity
reduction of 2.5% to 3.5% previously projected in Air Canada's press release
dated February 13, 2009). The airline further reduced its projected system ASM
capacity from what it had previously projected in order to better match its
capacity with passenger demand. Full year 2009 domestic ASM capacity is
expected to decline by between 3 per cent and 4 per cent compared to the full
year 2008 consistent with the domestic ASM capacity decline projected in Air
Canada's press release dated February 13, 2009. For the second quarter of
2009, Air Canada expects its system ASM capacity to decline by between 4 per
cent and 5 per cent compared to the second quarter of 2008. Air Canada has
identified over $250 million in reduction opportunities which it expects to
realize over the next 18 months through more efficient operational processes,
better vendor contract management and more effective manpower planning. It
also expects to identify additional savings initiatives over the next two
months. Air Canada expects its full year 2009 CASM, excluding fuel expense, to
increase between 5.5 per cent and 6.5 per cent compared to the full year 2008,
as opposed to the full year 2009 CASM increase (excluding fuel expense) of
between 6 per cent and 7 per cent previously projected in Air Canada's press
release dated February 13, 2009. This differs from what was projected in Air
Canada's press release of February 13, 2009 as certain expenses, such as
pension and post-retirement benefits, commissions, credit card fees and other
expenses, are anticipated to be lower than previously estimated despite a
weaker than anticipated Canadian dollar and an expected further reduction in
ASM capacity. For the second quarter of 2009, Air Canada expects CASM,
excluding fuel expense, to increase between 5 per cent and 6 per cent compared
to the second quarter of 2008.
    The above guidance reflects Air Canada's assumption that the North
American economy will remain weak for the second quarter and remainder of
2009. In addition, Air Canada expects that the Canadian dollar will trade, on
average, at Cdn $1.23 per US dollar in the second quarter of 2009 and Cdn
$1.21 per US dollar for the full year 2009 and that the price of fuel will
average 64 cents per litre in the second quarter of 2009 and will average 65
cents per litre for the full year 2009 (both net of fuel hedging positions).
    The outlook provided constitutes forward-looking statements within the
meaning of applicable securities laws and is based on a number of assumptions
and subject to a number of risks. Please see section below entitled "Caution
Regarding Forward-Looking Information."First Quarter 2009 Accomplishments
    ----------------------------------

    - With the introduction of one Boeing 777-300ER aircraft in the quarter,
      Air Canada has taken delivery of 17 Boeing 777 aircraft to date. The
      18th and final Boeing 777 is scheduled to be delivered in the third
      quarter of 2009. Air Canada is the first North American carrier to
      operate this newest generation, fuel efficient aircraft.

    - Completed the refurbishment of all of its planned operating aircraft,
      with the exception of one Airbus A330 and three Boeing 767-300ER
      aircraft.

    - Achieved on-time arrivals performance of 72.6 per cent in the quarter,
      a 4.2 percentage point increase from the previous year, based on Air
      Canada's domestic Canada arrivals as measured by the U.S. Department of
      Transportation's standards.

    - Received tentative approval from the U.S. DOT to form a transatlantic
      joint venture with Continental Airlines, United Airlines and Lufthansa.
      Continental Airlines has also received tentative approval to join the
      anti-trust immunized alliance of Air Canada and eight other Star
      Alliance carriers.

    - 48 per cent of domestic customers chose a higher branded fare than the
      lowest Tango fare available, unchanged versus the first quarter of
      2008.

    - Revenues from Flight Pass products increased 17 per cent over the first
      quarter of 2008, and represented approximately 6.1 per cent of North
      American revenues.

    - Web penetration for domestic Canada sales in the first quarter of 2009
      was 68 per cent - an increase of three percentage points over the first
      quarter of 2008. Web penetration for combined Canada and U.S.
      transborder sales was 56 per cent - an increase of two percentage
      points from the same quarter in 2008.

    - 76 per cent of domestic Canada sales, or 66 per cent when combined with
      U.S. sales, were made directly with Air Canada, either online or
      through call centres in the first quarter of 2009, compared to 75 per
      cent of domestic Canada sales, or 65 per cent when combined with U.S.
      sales, in the first quarter of 2008.

    - 59 per cent of Air Canada's customers used self-service check-in
      products in Canada in the first quarter of 2009 - a one percentage
      point increase from the same quarter in 2008.

    - Paid out $6 million in the first quarter of 2009 to Air Canada
      employees under the company's 'Sharing Our Success' monthly incentive
      program.

    - Air Canada contributed $112 million to funding its employees' defined
      benefit pension plans, of which $55 million represented funding of past
      service costs in accordance with Air Canada's agreement with the Office
      of the Superintendent of Financial Institutions (OSFI).

    - Since launching a carbon offset program in May 2007, Air Canada
      customers have funded the planting of more than 2,480 trees to offset
      12,400 tonnes of carbon emissions, the equivalent of taking over
      3,000 cars off the road for a year.(1) Non-GAAP Measures

    Air Canada uses adjusted earnings (loss) per share to assess share
performance without the effects of foreign exchange gains (losses). This
measure is not a recognized measure for financial statement presentation under
Canadian GAAP and does not have a standardized meaning and is therefore not
likely to be comparable to similar measures presented by other public
companies.
    EBITDAR is a non-GAAP financial measure commonly used in the airline
industry to assess earnings before interest, taxes, depreciation, amortization
and aircraft rent. EBITDAR is used to view operating results before aircraft
rent, depreciation and amortization as these costs can vary significantly
among airlines due to differences in the way airlines finance their aircraft
and other assets. EBITDAR is not a recognized measure for financial statement
presentation under GAAP and does not have a standardized meaning and is
therefore not comparable to similar measures presented by other public
companies.
    Readers should refer to Air Canada's First Quarter 2009 Management's
Discussion and Analysis (MD&A), which will be filed on SEDAR, and made
available on Air Canada's website at www.aircanada.com, for a reconciliation
of EBITDAR before the provision for cargo investigations and proceedings to
operating income (loss) and EBITDAR to operating income (loss).
    For further information on Air Canada's public disclosure file, including
Air Canada's Annual Information Form dated March 28, 2009, consult SEDAR at
www.sedar.com or www.aircanada.com.

    CAUTION REGARDING FORWARD-LOOKING INFORMATION
    ---------------------------------------------

    Air Canada's public communications may include written or oral forward
looking statements within the meaning of applicable securities laws. Such
statements are included in this press release and may be included in other
filings with regulatory authorities and securities regulators. Forward-looking
statements relate to analyses and other information that are based on
forecasts of future results and estimates of amounts not yet determinable.
These statements may involve, but are not limited to, comments relating to
strategies, expectations, planned operations or future actions. These
forward-looking statements are identified by the use of terms and phrases such
as "anticipate", "believe", "could", "estimate", "expect", "intend", "may",
"plan", "predict", "project", "will", "would", and similar terms and phrases,
including references to assumptions.
    Forward-looking statements, by their nature, are based on assumptions,
including those described below, and are subject to important risks and
uncertainties. Any forecasts or forward-looking predictions or statements
cannot be relied upon due to, amongst other things, changing external events
and general uncertainties of the business. Actual results may differ
materially from results indicated in forward-looking statements due to a
number of factors, including without limitation, industry, market, credit and
economic conditions, the ability to reduce operating costs and secure
financing, pension issues, energy prices, currency exchange and interest
rates, employee and labour relations, competition, war, terrorist acts,
epidemic diseases, insurance issues and costs, changes in demand due to the
seasonal nature of the business, supply issues, changes in laws, regulatory
developments or proceedings, pending and future litigation and actions by
third parties as well as the factors identified throughout this press release
and the MD&A and, in particular, those identified in section 18 "Risk Factors"
of Air Canada's 2008 MD&A dated February 13, 2009. The forward-looking
statements contained in this press release represent the Corporation's
expectations as of the date of this press release and are subject to change
after such date. However, the Corporation disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required
under applicable securities regulations.
    Assumptions were made by Air Canada in preparing and making
forward-looking statements. Air Canada assumes that the North American economy
will remain weak for the second quarter of 2009 and for the remainder of 2009.
In addition, Air Canada expects that the Canadian dollar will trade, on
average, at Cdn $1.23 per US dollar in the second quarter of 2009 and Cdn
$1.21 per US dollar for the full year 2009 and that the price of fuel will
average 64 cents per litre in the second quarter of 2009 and will average 65
cents per litre for the full year 2009 (both net of fuel hedging positions).-------------------------------------------------------------------------
    Highlights
    -------------------------------------------------------------------------

    The financial and operating highlights for the Corporation for the periods
indicated are as follows.

                                               ------------------------------
                                                       First Quarter
                                               ------------------------------
    (Canadian dollars in millions except                           Change
     per share figures)                          2009      2008         $
    -------------------------------------------------------------------------
    Financial
    -------------------------------------------------------------------------
    Operating revenues                          2,391     2,727      (336)
    -------------------------------------------------------------------------
    Operating loss before a special
     provision(1)                                (188)      (12)     (176)
    -------------------------------------------------------------------------
    Operating loss                               (188)     (137)      (51)
    -------------------------------------------------------------------------
    Non-operating expense                        (109)     (107)       (2)
    -------------------------------------------------------------------------
    Loss before non-controlling interest,
     foreign exchange and income taxes           (297)     (244)      (53)
    -------------------------------------------------------------------------
    Loss for the period                          (400)     (288)     (112)
    -------------------------------------------------------------------------
    Operating margin before a special
     provision %(1)                              (7.9%)    (0.4%)    (7.5)pp
    -------------------------------------------------------------------------
    Operating margin %                           (7.9%)    (5.0%)    (2.9)pp
    -------------------------------------------------------------------------
    EBITDAR before a special provision(1)(2)       57       222      (165)
    -------------------------------------------------------------------------
    EBITDAR(2)                                     57        97       (40)
    -------------------------------------------------------------------------
    EBITDAR margin before a special
     provision %(1)(2)                            2.4%      8.1%     (5.7)pp
    -------------------------------------------------------------------------
    EBITDAR margin %(2)                           2.4%      3.6%     (1.2)pp
    -------------------------------------------------------------------------
    Cash, cash equivalents and short-term
     investments                                1,087     1,394      (307)
    -------------------------------------------------------------------------
    Free cash flow                                 61      (173)      234
    -------------------------------------------------------------------------
    Adjusted debt/equity ratio                   93.3%     68.8%     24.5 pp
    -------------------------------------------------------------------------
    Loss per share - basic and diluted         ($4.00)   ($2.88)   ($1.12)
    -------------------------------------------------------------------------
                                                                   Change
    Operating Statistics                                                %
    -------------------------------------------------------------------------
    Revenue passenger miles (millions) (RPM)   10,984    12,331     (10.9)
    -------------------------------------------------------------------------
    Available seat miles (millions) (ASM)      13,821    15,407     (10.3)
    -------------------------------------------------------------------------
    Passenger load factor                        79.5%     80.0%     (0.5)pp
    -------------------------------------------------------------------------
    Passenger revenue per RPM (cents)            18.2      18.7      (2.3)
    -------------------------------------------------------------------------
    Passenger revenue per ASM (cents)            14.5      15.0      (3.0)
    -------------------------------------------------------------------------
    Operating revenue per ASM (cents)            17.3      17.7      (2.3)
    -------------------------------------------------------------------------
    Operating expense per ASM ("CASM") (cents)   18.7      17.8       5.0
    -------------------------------------------------------------------------
    CASM, excluding fuel expense (cents)         14.4      13.1       9.4
    -------------------------------------------------------------------------
    Average number of full-time equivalent
     (FTE) employees (thousands)(3)              22.7      24.0      (5.4)
    -------------------------------------------------------------------------
    Aircraft in operating fleet at period
     end(4)                                       334       341      (2.1)
    -------------------------------------------------------------------------
    Average fleet utilization (hours
     per day)(5)                                  9.1       9.9      (8.2)
    -------------------------------------------------------------------------
    Average aircraft flight length
     (miles)(5)                                   841       876      (4.0)
    -------------------------------------------------------------------------
    Fuel price per litre (cents)(6)              71.4      75.2      (5.1)
    -------------------------------------------------------------------------
    Fuel litres (millions)                        827       947     (12.7)
    -------------------------------------------------------------------------

    (1) A provision related to investigations of alleged anti-competitive
        cargo pricing activities of $125 million was recorded in the first
        quarter of 2008.
    (2) See section 15 "Non-GAAP Financial Measures" in Air Canada's First
        Quarter 2009 MD&A dated May 8, 2009 for a reconciliation of EBITDAR
        before the provision for cargo investigations to operating income
        (loss) and EBITDAR to operating income (loss).
    (3) Reflects FTE employees at Air Canada. Excludes FTE employees at Jazz.
    (4) Includes Jazz aircraft covered under the Jazz CPA.
    (5) Excludes third party carriers operating under capacity purchase
        arrangements, other than Jazz aircraft covered under the Jazz CPA.
    (6) Includes fuel handling and is net of fuel hedging results.%SEDAR: 00001324EF