Air Canada reports record load factor for July

MONTREAL, Aug. 5 /CNW Telbec/ - For the month of July, Air Canada reported a record system load factor of 84.9 per cent on a consolidated basis with Jazz (from which Air Canada purchases regional capacity), versus 83.6 per cent in July 2009, an increase of 1.3 percentage points. System traffic increased 10.8 per cent on a system wide capacity increase of 9.1 per cent.

"In July, Air Canada reported a record system load factor of 84.9 per cent for the month on a consolidated basis with Jazz," said Calin Rovinescu, President and Chief Executive Officer. "These record load factor results, led by a 5.7 percentage point year-over-year increase on the Pacific, were achieved as we continue to increase utilization of our existing fleet and deploy capacity to pursue strategic opportunities in international markets. As we reported in our second quarter financial results, Asian and European markets where we added capacity are performing well. Traffic increased in all markets Air Canada serves - our eighth consecutive month of year-over-year traffic increases on a consolidated basis. These strong results reflect our ability to leverage Toronto and our other Canadian hubs to capture connecting global traffic and successfully position Air Canada as a leading international airline. I want to thank our employees for delivering an award winning product for our customers, and for meeting Customer Satisfaction Objectives for July, one of the busiest travel periods of the year."

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Air Canada's public communications may include 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.

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                                 CONSOLIDATED
                       (AIR CANADA MAINLINE AND JAZZ)
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                              July                     Year-To-Date
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                      2010    2009  Change         2010    2009  Change
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    Traffic
     (RPMs mln)      5,378   4,852   +10.8%      29,966  27,698    +8.2%
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    Capacity
     (ASMs mln)      6,331   5,802    +9.1%      36,581  34,359    +6.5%
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    Load Factor       84.9%   83.6%   +1.3 pts     81.9%   80.6%   +1.3 pts
    -------------------------------------------------------------------------
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              RPMs   1,647   1,613    +2.1%       9,078   8,902    +2.0%
              ---------------------------------------------------------------
    Canada    ASMs   2,035   2,023    +0.6%      11,323  11,212    +1.0%
              ---------------------------------------------------------------
              LF      80.9%   79.7%   +1.2 pts     80.2%   79.4%    0.8 pts
    -------------------------------------------------------------------------
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              RPMs     710     616   +15.3%       4,711   4,372    +7.8%
    US        ---------------------------------------------------------------
     Trans-   ASMs     903     786   +14.9%       6,144   5,781    +6.3%
     border   ---------------------------------------------------------------
              LF      78.6%   78.4%   +0.2 pts     76.7%   75.6%   +1.1 pts
    -------------------------------------------------------------------------
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              RPMs   1,648   1,465   +12.5%       7,363   6,946    +6.0%
              ---------------------------------------------------------------
    Atlantic  ASMs   1,862   1,645   +13.2%       8,833   8,344    +5.9%
              ---------------------------------------------------------------
              LF      88.5%   89.1%   -0.6 pts     83.4%   83.2%   +0.2 pts
    -------------------------------------------------------------------------
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              RPMs     917     759   +20.8%       5,174   4,152   +24.6%
              ---------------------------------------------------------------
    Pacific   ASMs   1,000     883   +13.3%       5,799   4,848   +19.6%
              ---------------------------------------------------------------
              LF      91.7%   86.0%   +5.7 pts     89.2%   85.6%   +3.6 pts
    -------------------------------------------------------------------------
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              RPMs     456     399   +14.3%       3,640   3,326    +9.4%
    Latin     ---------------------------------------------------------------
     Amer &   ASMs     531     465   +14.2%       4,482   4,174    +7.4%
     Other    ---------------------------------------------------------------
              LF      85.9%   85.8%   +0.1 pts     81.2%   79.7%   +1.5 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