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Air Canada reports twenty second consecutive month of record system load factors

MONTREAL, Feb. 7 /CNW Telbec/ – Air Canada reported a system load factor of 78.1 per cent in January 2006. The mainline carrier flew 2.7 per cent more revenue passenger miles (RPMs) in January 2006 than in January 2005, according to preliminary traffic figures. Overall, capacity increased by 2.2 per cent, resulting in a load factor of 78.1 per cent, compared to 77.7 per cent in January 2005; an increase of 0.4 percentage points.

Jazz, ACE's regional subsidiary, flew 79.9 per cent more revenue passenger miles in January 2006 than in January 2005, according to preliminary traffic figures. Capacity increased by 81.9 per cent, resulting in a load factor of 66.2 per cent, compared to 67.0 per cent in January 2005; a decrease of 0.8 percentage points. North American traffic, on a combined basis for Air Canada and ACE's regional carrier, Jazz, rose 7.7 per cent. "Air Canada achieved two record-breaking performances in January. Our employees delivered the best on time performance on record for the month along with the highest load factor of any January in our history," said Montie Brewer, President and Chief Executive Officer. "The airline's overall performance remained strong, particularly in North America with Air Canada and Air Canada Jazz together reporting a 7.7 per cent increase in traffic over the same month last year even as we added capacity with the delivery of new aircraft to the combined fleet. I'm proud of Air Canada's employees particularly in view of the strong operational performance achieved while handling record volumes. Customers are showing an ongoing preference for the Air Canada product and our employees are working hard to earn their loyalty."

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.