AIR CANADA REPORTS RECORD LOAD FACTOR FOR AUGUST

MONTREAL, Sept. 7 /CNW Telbec/ - For the month of August, Air Canada reported a system load factor of 86.8 per cent on a consolidated basis with Jazz (from which Air Canada purchases regional capacity), matching last year's record for the same month. System traffic increased 7.1 per cent on a system wide capacity increase of 7.0 per cent.

"For the month of August, Air Canada reported a load factor of 86.8 per cent on a consolidated basis with Jazz, matching the record set last year for the same month," said Calin Rovinescu, President and Chief Executive Officer. "These record load factor results were achieved as we continue to increase utilization of our existing fleet and leverage effectively our hubs and global network. This is our ninth consecutive month that we have recorded year-over-year traffic increases. I want to thank all our employees throughout the company for delivering an award winning product and meeting Customer Satisfaction Objectives for August, one of the busiest months for travel. Their hard work and professionalism has been instrumental in earning the loyalty of our customers."

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, 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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                             August                    Year-To-Date
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                      2010    2009  Change         2010    2009  Change
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    Traffic
     (RPMs mln)      5,495   5,133    +7.1%      35,461  32,831    +8.0%
    -------------------------------------------------------------------------
    Capacity
     (ASMs mln)      6,331   5,917    +7.0%      42,911  40,276    +6.5%
    -------------------------------------------------------------------------
    Load Factor       86.8%   86.8%    0.0 pts     82.6%   81.5%   +1.1 pts
    -------------------------------------------------------------------------
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              RPMs   1,740   1,745    -0.3%      10,817  10,647    +1.6%
              ---------------------------------------------------------------
    Canada    ASMs   2,050   2,046    +0.2%      13,373  13,258    +0.9%
              ---------------------------------------------------------------
              LF      84.9%   85.3%   -0.4 pts     80.9%   80.3%    0.6 pts
    -------------------------------------------------------------------------
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              RPMs     721     638   +13.0%       5,432   5,011    +8.4%
    US        ---------------------------------------------------------------
     Trans-   ASMs     903     790   +14.3%       7,046   6,571    +7.2%
     border   ---------------------------------------------------------------
              LF      79.8%   80.8%   -1.0 pts     77.1%   76.3%   +0.8 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs   1,676   1,521   +10.2%       9,038   8,468    +6.7%
              ---------------------------------------------------------------
    Atlantic  ASMs   1,863   1,679   +11.0%      10,696  10,023    +6.7%
              ---------------------------------------------------------------
              LF      90.0%   90.6%   -0.6 pts     84.5%   84.5%    0.0 pts
    -------------------------------------------------------------------------
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              RPMs     909     827    +9.9%       6,083   4,978   +22.2%
              ---------------------------------------------------------------
    Pacific   ASMs     998     926    +7.8%       6,797   5,774   +17.7%
              ---------------------------------------------------------------
              LF      91.1%   89.3%   +1.8 pts     89.5%   86.2%   +3.3 pts
    -------------------------------------------------------------------------
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              RPMs     449     402   +11.7%       4,091   3,727    +9.8%
    Latin     ---------------------------------------------------------------
     Amer &   ASMs     517     476    +8.6%       4,999   4,650    +7.5%
     Other    ---------------------------------------------------------------
              LF      86.8%   84.4%   +2.4 pts     81.8%   80.2%   +1.6 pts
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%SEDAR: 00001324EF

For further information: Isabelle Arthur (Montréal), [phone]; Peter Fitzpatrick (Toronto), [phone]; Angela Mah (Vancouver), [phone]; Internet: aircanada.com