Air Canada reports June traffic

    Record system passenger load factor of 82.8%

    MONTREAL, July 5 /CNW Telbec/ - Air Canada reported a load factor for the
mainline of 83.4 per cent in June 2007, matching last June's record.
    The mainline carrier flew 1.1 per cent more revenue passenger miles
(RPMs) in June 2007 than in June 2006, according to preliminary traffic
figures. Capacity increased by 1.1 per cent, resulting in a load factor of
83.4 per cent, matching June 2006's record of 83.4 per cent.
    Jazz, from which Air Canada purchases regional capacity, flew 13.1 per
cent more RPMs in June 2007 than in June 2006, according to preliminary
traffic figures. Capacity increased by 9.0 per cent, resulting in a load
factor of 76.6 per cent, compared to 73.8 per cent in June 2006; an increase
of 2.8 percentage points.
    Year over year, system traffic on a consolidated basis for Air Canada and
Jazz, rose 2.0 per cent on a capacity increase of 1.8 per cent, resulting in a
load factor of 82.8 per cent; an increase of 0.2 percentage points, and a
record for the month of June.
    "Air Canada together with Jazz achieved a record system load factor of
82.8 per cent for the month of June. Traffic growth remains strong
particularly in the domestic market where traffic was up 6.7 per cent,
outpacing capacity growth for an increase in load factor of 3.2 percentage
points on a combined basis with Jazz," said Montie Brewer, President and Chief
Executive Officer. "Our strong performance system wide reflects consumers'
preference for the new Air Canada as we continue to add new and refurbished
aircraft in the fleet offering the very best in industry leading amenities. In
addition, customers clearly are embracing Air Canada's new revenue model
featuring à la carte pricing and multi-trip subscription flight passes. I am
proud that Air Canada employees once again achieved customer service
objectives for the month and I thank them for their on-going work in earning
the loyalty of our customers."

    NOTE: Beginning in May 2007, Air Canada has adjusted the way it reports
its monthly traffic results. Tier 3 flying is now included in mainline results
along with Jetz. Charter flying is apportioned among the respective market
segments. The June 2006 and year-to-date traffic numbers have been adjusted to
reflect these changes for year-over-year comparisons.

    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.-------------------------------------------------------------------------
                             AIR CANADA MAINLINE
                           (Includes Jetz & Tier 3)
    -------------------------------------------------------------------------
                                JUNE                     Year-To-Date
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   4,118   4,072    +1.1%     22,318  21,735    +2.7%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   4,935   4,880    +1.1%     27,165  26,768    +1.5%
    -------------------------------------------------------------------------
    Load Factor         83.4%   83.4%    0.0 pts    82.2%   81.2%   +1.0 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,197   1,179    +1.5%      6,131   5,897    +4.0%
             ----------------------------------------------------------------
    Canada   ASMs      1,486   1,487    -0.1%      7,458   7,462    -0.1%
             ----------------------------------------------------------------
             Load
              Factor    80.6%   79.3%   +1.3 pts    82.2%   79.0%   +3.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        566     564    +0.4%      3,926   3,842    +2.2%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        700     719    -2.6%      4,970   4,828    +2.9%
    border   ----------------------------------------------------------------
             Load
              Factor    80.9%   78.4%   +2.5pts     79.0%  79.6%    -0.6 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,302   1,273    +2.3%      5,763   5,615    +2.6%
             ----------------------------------------------------------------
    Atlantic ASMs      1,497   1,407    +6.4%      6,789   6,607    +2.8%
             ----------------------------------------------------------------
             Load
              Factor    87.0%   90.5%   -3.5 pts    84.9%   85.0%   -0.1 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        749     781    -4.1%      4,043   4,003    +1.0%
             ----------------------------------------------------------------
    Pacific  ASMs        863     917    -5.9%      4,792   4,819    -0.6%
             ----------------------------------------------------------------
             Load
              Factor    86.8%   85.2%   +1.6 pts    84.4%   83.1%   +1.3 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        304     275   +10.5%      2,455   2,378    +3.2%
    Latin    ---------------------------------------------------------------
    America  ASMs        389     350   +11.1%      3,156   3,052    +3.4%
    & Other  ---------------------------------------------------------------
             Load
              Factor    78.1%   78.6%   -0.5 pts    77.8%   77.9%   -0.1 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                                JUNE                     Year-To-Date
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)     379     335   +13.1%      2,076   1,753   +18.4%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)     495     454    +9.0%      2,791   2,445   +14.2%
    -------------------------------------------------------------------------
    Load Factor         76.6%   73.8%   +2.8 pts    74.4%   71.7%   +2.7 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        288     246   +17.1%      1,550   1,305   +18.8%
             ----------------------------------------------------------------
    Canada   ASMs        365     328   +11.3%      2,015   1,782   +13.1%
             ----------------------------------------------------------------
             Load
              Factor    78.9%   75.0%   +3.9 pts    76.9%   73.2%   +3.7 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs         91      89    +2.2%        526      448  +17.4%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        130     126    +3.2%        776      663  +17.0%
    border   ----------------------------------------------------------------
             Load
              Factor    70.0%   70.6%   -0.6 pts    67.8%   67.6%   +0.2 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                                JUNE                     Year-To-Date
                       ------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   4,497   4,407    +2.0%     24,394  23,488    +3.9%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   5,430   5,334    +1.8%     29,956  29,213    +2.5%
    -------------------------------------------------------------------------
    Load Factor         82.8%   82.6%   +0.2 pts    81.4%   80.4%   +1.0 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      1,485   1,425    +4.2%      7,681   7,202    +6.7%
             ----------------------------------------------------------------
    Canada   ASMs      1,851   1,815    +2.0%      9,473   9,244    +2.5%
             ----------------------------------------------------------------
             Load
              Factor    80.2%   78.5%   +1.7 pts    81.1%   77.9%   +3.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs        657     653    +0.6%      4,452   4,290    +3.8%
    U.S.     ----------------------------------------------------------------
    Trans-   ASMs        830     845    -1.8%      5,746   5,491    +4.6%
    border   ----------------------------------------------------------------
             Load
              Factor   79.2%    77.3%   +1.9 pts    77.5%   78.1%   -0.6 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
             RPMs      2,355   2,329    +1.1%     12,261  11,996    +2.2%
             ----------------------------------------------------------------
    Interna- ASMs
    tional    Load     2,749   2,674    +2.8%     14,737  14,478    +1.8%
             ----------------------------------------------------------------
             Factor    85.7%    87.1%   -1.4 pts    83.2%   82.9%   +0.3 pts
    -------------------------------------------------------------------------%SEDAR: 00024384EF



For further information:
For further information: Isabelle Arthur, (Montréal), (514) 422-5788;
Peter Fitzpatrick (Toronto), (416) 263-5576; Angela Mah (Vancouver), (604)
270-5741; Denis Biro (Montréal), (514) 422-7837, Director, Investor Relations;
Internet: aircanada.com