Air Canada Reports Unconsolidated May Traffic

Air Canada flew 21.7 per cent more revenue passenger miles (RPMs) in May 2000 than in the same month of 1999, according to preliminary traffic figures. Capacity increased by 15.7 per cent, resulting in a passenger load factor of 76.4 per cent, compared with 72.6 per cent in May 1999.

According to Danielle Poudrette, Vice President, Marketing, ``Traffic for the month of May was very strong and exceeded the capacity change on domestic and Atlantic markets, while meeting capacity change on the U.S. market. While traffic growth reached up to 30% year over year in the first two weeks of the month, Air Canada made a concerted effort to divert some traffic to Canadian Airlines in the last two weeks in order to better balance passenger load factors at both airlines.'' System cargo traffic for the month rose 13.4 per cent to 76 million revenue ton miles.

-------------------------------------------------------------------------

SUMMARY OF UNCONSOLIDATED MONTHLY STATISTICS

-------------------------------------------------------------------------

MAY YEAR - TO - DATE

2000 1999 Change 2000 1999 Change

-------------------------------------------------------------------------

Traffic (RPMs millions) 2,398 1,970 +21.7% 10,391 8,822 +17.8%

-------------------------------------------------------------------------

Capacity (ASMs millions) 3,139 2,712 +15.7% 14,491 12,758 +13.6%

-------------------------------------------------------------------------

Load Factor 76.4% 72.6% +3.8 pts 71.7% 69.1% +2.6 pts

-------------------------------------------------------------------------

RPMs 812 717 +13.2% 3,472 3,110 +11.6%

Canada --------------------------------------------------------------

ASMs 1,024 981 +4.4% 4,724 4,490 +5.2%

--------------------------------------------------------------

Load Factor 79.3% 73.1% +6.2 pts 73.5% 69.3% +4.2 pts

-------------------------------------------------------------------------

RPMs 1,586 1,253 +26.6% 6,919 5,712 +21.1%

InternationaI --------------------------------------------------------------

ASMs 2,115 1,731 +22.2% 9,767 8,268 +18.1%

--------------------------------------------------------------

Load Factor 75.0% 72.4% +2.6 pts 70.8% 69.1% +1.7pts

-------------------------------------------------------------------------

System Cargo Traffic

(RTMs millions) 76 67 +13.4% 368 317 +16.1%

-------------------------------------------------------------------------