Air Canada reports record load factor for June

MONTREAL, July 6 /CNW Telbec/ - For the month of June, Air Canada reported a record system load factor of 84.7 per cent on a consolidated basis with Jazz (from which Air Canada purchases regional capacity), versus 80.9 per cent in June 2009, an increase of 3.8 percentage points. System traffic increased 15.0 per cent on a system wide capacity increase of 9.9 per cent.

"For the month of June, Air Canada reported a record load factor of 84.7 per cent on a consolidated basis with Jazz. Led by over 33 per cent traffic growth in the Pacific, we recorded an increase in traffic in all markets -- the seventh consecutive month of year-over-year traffic increases on a consolidated basis," said Calin Rovinescu, President and Chief Executive Officer. "I am pleased to report these strong results as we continue to deploy capacity effectively by increasing utilization of our existing fleet. This spring, Air Canada introduced new transborder routes with daily service between Toronto and seven U.S. cities. In June, we launched year-round non-stop service between Toronto-Copenhagen and Montreal-Brussels, as well as seasonal flights to Barcelona and Athens from both Toronto and Montreal, and St. John's NL-London Heathrow. With the recent designation of Approved Destination Status for Canada by Chinese authorities, we look forward to doubling capacity between Toronto and China this fall, as one of North America's leading carriers to China with up to six daily non-stop flights this summer to Beijing, Shanghai and Hong Kong. I want to thank our employees for delivering an award winning product to our customers, and for meeting Customer Satisfaction Objectives for June, as we ramp up for a busy summer season ahead."

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. Forward-looking statements, by their nature, are based on assumptions 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, environmental factors (including weather systems and other natural phenomena, such as volcanic eruptions, and factors arising from man-made sources), 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 Air Canada's public disclosure file available at www.sedar.com. The forward-looking statements contained in this news release represent Air Canada's expectations as of the date of this news release and are subject to change after such date. However, Air Canada 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.

-------------------------------------------------------------------------
                                 CONSOLIDATED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                              June                          Q2
    -------------------------------------------------------------------------
                      2010    2009  Change         2010    2009  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs mln)      4,791   4,166   +15.0%      12,896  11,862    +8.7%
    -------------------------------------------------------------------------
    Capacity
     (ASMs mln)      5,657   5,149    +9.9%      15,523  14,735    +5.3%
    -------------------------------------------------------------------------
    Load Factor       84.7%   80.9%   +3.8 pts     83.1%   80.5%   +2.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs   1,448   1,407    +2.9%       4,007   3,894    +2.9%
              ---------------------------------------------------------------
    Canada    ASMs   1,778   1,789    -0.6%       4,915   4,925    -0.2%
              ---------------------------------------------------------------
              LF      81.4%   78.6%   +2.8 pts     81.5%   79.1%   +2.4 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs     621     514   +20.8%       1,878   1,703   +10.3%
    US        ---------------------------------------------------------------
     Trans-   ASMs     815     708   +15.1%       2,490   2,320    +7.3%
     border   ---------------------------------------------------------------
              LF      76.2%   72.6%   +3.6 pts     75.4%   73.4%   +2.0 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs   1,471   1,265   +16.3%       3,408   3,302    +3.2%
              ---------------------------------------------------------------
    Atlantic  ASMs   1,636   1,429   +14.5%       3,931   3,838    +2.4%
              ---------------------------------------------------------------
              LF      89.9%   88.5%   +1.4 pts     86.7%   86.0%   +0.7 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs     870     652   +33.4%       2,354   1,854   +27.0%
              ---------------------------------------------------------------
    Pacific   ASMs     947     814   +16.3%       2,617   2,227   +17.5%
              ---------------------------------------------------------------
              LF     91.9%    80.1%  +11.8 pts     90.0%   83.3%   +6.7 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs     381     328   +16.2%       1,249   1,109   +12.6%
    Latin     ---------------------------------------------------------------
     Amer &   ASMs     481     409   +17.6%       1,570   1,425   +10.2%
     Other    ---------------------------------------------------------------
              LF      79.2%   80.2%   -1.0 pts     79.6%   77.8%   +1.8 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                 CONSOLIDATED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                                                      Year-To-Date
                                        -------------------------------------
                                                   2010    2009  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs mln)                                  24,588  22,846    +7.6%
    -------------------------------------------------------------------------
    Capacity
     (ASMs mln)                                  30,250  28,557    +5.9%
    -------------------------------------------------------------------------
    Load Factor                                    81.3%   80.0%   +1.3 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs                                7,431   7,289    +1.9%
              ---------------------------------------------------------------
    Canada    ASMs                                9,288   9,189    +1.1%
              ---------------------------------------------------------------
              LF                                   80.0%   79.3%   +0.7 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs                                4,001   3,756    +6.5%
    US        ---------------------------------------------------------------
     Trans-   ASMs                                5,240   4,995    +4.9%
     border   ---------------------------------------------------------------
              LF                                   76.4%   75.2%   +1.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs                                5,714   5,482    +4.2%
              ---------------------------------------------------------------
    Atlantic  ASMs                                6,971   6,699    +4.1%
              ---------------------------------------------------------------
              LF                                   82.0%   81.8%   +0.2 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs                                4,256   3,393   +25.4%
              ---------------------------------------------------------------
    Pacific   ASMs                                4,799   3,965   +21.0%
              ---------------------------------------------------------------
              LF                                   88.7%   85.6%   +3.1 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs                                3,186   2,926    +8.9%
    Latin     ---------------------------------------------------------------
     Amer &   ASMs                                3,952   3,709    +6.6%
     Other    ---------------------------------------------------------------
              LF                                   80.6%   78.9%   +1.7 pts
    -------------------------------------------------------------------------

%SEDAR: 00001324EF

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