AIR CANADA REPORTS JANUARY TRAFFIC

MONTREAL, Feb. 4 /CNW Telbec/ - For the month of January, Air Canada reported a system load factor of 78.0 per cent, versus 77.5 per cent in January 2010, an increase of 0.5 percentage points. System traffic increased 9.1 per cent on a system-wide capacity increase of 8.4 per cent. Air Canada reports traffic results on a system-wide basis, including regional airlines from which Air Canada purchases capacity.

"For the month of January, Air Canada reported a system load factor of 78 per cent. Led by a 28.8 per cent increase over the Pacific, we generated greater traffic in all markets with system-wide growth of 9.1 per cent, while overall capacity increased 8.4 per cent through higher utilization of our existing fleet," said Calin Rovinescu, President and Chief Executive Officer. "Following on the record load factor we reported for the year 2010, these results highlight Air Canada's ongoing determination to operate the airline in a disciplined and efficient manner with respect to capacity and asset deployment. In addition, the fact that we also reached our Customer Satisfaction Index target for January despite challenging winter weather underscores our focus on providing excellent service. I thank our employees for their strong commitment to taking care of our customers and for safely transporting them to their destinations."

In 2010 readership surveys, Global Traveler magazine readers voted Air Canada Best Airline in North America, and Business Traveler magazine readers voted Air Canada as the top airline in North America for Best Flight Attendants, Best In-Flight Services, Best Business Class Service, Best North American Airline for International Travel, as well as for Best Airline Web Site.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

 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 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. Any 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.

 
  January Year-To-Date
  2011 2010 Change 2011 2010 Change
Traffic (RPMs mln) 4,215 3,864       +9.1% 4,215 3,864 +9.1%
Capacity (ASMs mln)    5,403 4,986 +8.4% 5,403 4,986 +8.4%
Load Factor      78.0%      77.5%      +0.5 pts      78.0%      77.5%      +0.5 pts
               
Canada RPMs 1,133 1,114 +1.7% 1,133 1,114 +1.7%

ASMs

1,481 1,478 +0.2% 1,481 1,478 +0.2%
LF 76.5% 75.4% +1.1 pts 76.5% 75.4% +1.1 pts
               
US
Transborder
RPMs 755 682 +10.7% 755 682 +10.7%

ASMs

1,014 928 +9.3% 1,014 928 +9.3%
LF 74.5% 73.5% +1.0 pts 74.5% 73.5% +1.0 pts
               
Atlantic RPMs 788 757 +4.1% 788 757 +4.1%

ASMs

1,087 1,021 +6.5% 1,087 1,021 +6.5%
LF 72.5% 74.1% -1.6 pts 72.5% 74.1% -1.6 pts
               
Pacific RPMs 797 619 +28.8% 797 619 +28.8%

ASMs

911 726 +25.5% 911 726 +25.5%
LF 87.5% 85.3% +2.2 pts 87.5% 85.3% +2.2 pts
               
Latin Amer
& Other
RPMs 742 692 +7.2% 742 692 +7.2%

ASMs

910 833 +9.2% 910 833 +9.2%
LF 81.5% 83.1% -1.6 pts 81.5% 83.1% -1.6 pts
For further information:
Contacts:     Isabelle Arthur (Montréal) 514 422-5788