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Air Canada reports November traffic

    MONTREAL, Dec. 5 /CNW Telbec/ - For the month of November, system traffic
on a consolidated basis for Air Canada and Jazz rose 2.7 per cent, led by
domestic Canada traffic growth of 3.5 per cent, on a capacity increase of
3.9 per cent system wide. This resulted in a load factor of 75.7 per cent
versus 76.6 per cent in November 2006.
    The mainline carrier flew 2.1 per cent more revenue passenger miles
(RPMs) in November 2007 than in November 2006, according to preliminary
traffic figures. Capacity increased by 3.6 per cent, resulting in a load
factor of 76.1 per cent, compared to 77.2 per cent in November 2006; a
decrease of 1.1 percentage points.
    Jazz, from which Air Canada purchases regional capacity, flew 7.8 per
cent more RPMs in November 2007 than in November 2006, according to
preliminary traffic figures. Capacity increased by 7.0 per cent, resulting in
a load factor of 72.2 per cent, compared to 71.7 per cent in November 2006; an
increase of 0.5 percentage points.
    "In November, Air Canada and Jazz together reported continued growth in
traffic with an increase of 2.7 per cent system wide, led by the domestic
market. This resulted in a load factor of 75.7 per cent on a combined basis,"
said Montie Brewer, President and Chief Executive Officer. "These solid
results produced in this traditionally slower off-peak season underscore
effective capacity management on an on-going basis. At the end of November we
received our eighth of 18 Boeing 777 aircraft scheduled for delivery by the
end of 2009, as we continue to renew our fleet with more fuel efficient
aircraft. Our customers now enjoy flying these state-of-the-art aircraft
featuring lie-flat beds in business class on all our Toronto non-stop services
to Hong Kong, Beijing and Shanghai, as well as on key European routes. This
month, we are looking forward to introducing the only non-stop service between
Canada and Australia with the launch December 14th of daily Vancouver-Sydney
service operated with our new 777-200LR aircraft."

    NOTE: Beginning in May 2007, Air Canada has adjusted the way it reports
its monthly traffic results. Tier 3 flying is now included in mainline results
along with Jetz. Charter flying is apportioned among the respective market
segments. The November 2006 and year-to-date traffic numbers have been
adjusted to reflect these changes for year-over-year comparisons.

    This disclosure may include forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements are based on
assumptions, are subject to important risks and uncertainties and cannot be
relied upon due to, amongst other things, changing external factors and
general uncertainties of the business. Results indicated in forward-looking
statements may differ materially from actual results due to a number of
factors, including without limitation, energy prices, general industry, market
and economic conditions, war, terrorist acts, labour or pension issues,
changes in laws and regulations, litigation and actions by third parties as
well as the factors identified in Air Canada's public disclosure file
accessible through SEDAR at www.sedar.com. 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.

    -------------------------------------------------------------------------
                             AIR CANADA MAINLINE
                           (Includes Jetz & Tier 3)
    -------------------------------------------------------------------------
                              NOVEMBER                  Year-To-Date
              ---------------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   3,065   3,001    +2.1%     42,704  41,594    +2.7%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   4,027   3,888    +3.6%     52,461  51,256    +2.4%
    -------------------------------------------------------------------------
    Load Factor         76.1%   77.2%   -1.1 pts    81.4%   81.1%   +0.3 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs       887     873    +1.6%     12,081  11,635    +3.8%
              ---------------------------------------------------------------
    Canada    ASMs     1,121   1,091    +2.7%     14,823  14,496    +2.3%
              ---------------------------------------------------------------
              Load
               Factor   79.1%   80.0%   -0.9 pts    81.5%   80.3%   +1.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs       552     537    +2.8%      6,912   6,858    +0.8%
    U.S.      ---------------------------------------------------------------
     Trans-   ASMs       735     714    +2.9%      8,780   8,689    +1.0%
     border   ---------------------------------------------------------------
              Load
               Factor   75.1%   75.2%   -0.1 pts    78.7%   78.9%   -0.2 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs       719     709    +1.4%     11,578  11,245    +3.0%
              ---------------------------------------------------------------
    Atlantic  ASMs       975     924    +5.5%     13,934  13,447    +3.6%
              ---------------------------------------------------------------
              Load
               Factor   73.7%   76.7%   -3.0 pts    83.1%   83.6%   -0.5 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs       588     592    -0.7%      8,059   8,002    +0.7%
              ---------------------------------------------------------------
    Pacific   ASMs       766     740    +3.5%      9,737   9,672    +0.7%
              ---------------------------------------------------------------
              Load
               Factor   76.8%   80.0%   -3.2 pts    82.8%   82.7%   +0.1 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Latin
     America
     & Other  RPMs       319     290   +10.0%      4,074   3,854    +5.7%
              ---------------------------------------------------------------
              ASMs       430     419    +2.6%      5,187   4,952    +4.7%
              ---------------------------------------------------------------
              Load
               Factor   74.2%   69.2%   +5.0 pts    78.5%   77.8%   +0.7 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                   AIR CANADA'S REGIONAL CAPACITY PROVIDER
                                   (JAZZ)
    -------------------------------------------------------------------------
                              NOVEMBER                  Year-To-Date
              ---------------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)     330     306    +7.8%      3,932   3,499   +12.4%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)     457     427    +7.0%      5,286   4,842    +9.2%
    -------------------------------------------------------------------------
    Load Factor         72.2    71.7%   +0.5 pts    74.4%   72.3%   +2.1 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs       249     225   +10.7%      2,954   2,611   +13.1%
              ---------------------------------------------------------------
    Canada    ASMs       334     304    +9.9%      3,849   3,514    +9.5%
              ---------------------------------------------------------------
              Load
               Factor   74.6%   74.0%   +0.6 pts    76.7%   74.3%   +2.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs        81      81     0.0%        978     888   +10.1%
    U.S.      ---------------------------------------------------------------
     Trans-   ASMs       123     123     0.0%      1,437   1,328    +8.2%
     border   ---------------------------------------------------------------
              Load
               Factor   65.9%   65.9%    0.0 pts    68.1%   66.9%   +1.2 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   COMBINED
                       (AIR CANADA MAINLINE AND JAZZ)
    -------------------------------------------------------------------------
                              NOVEMBER                   Year-To-Date
              ---------------------------------------------------------------
                        2007    2006  Change        2007    2006  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)   3,395   3,307    +2.7%     46,636  45,093    +3.4%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)   4,484   4,315    +3.9%     57,747  56,098    +2.9%
    -------------------------------------------------------------------------
    Load Factor         75.7%   76.6%   -0.9 pts    80.8%   80.4%   +0.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs     1,136   1,098    +3.5%     15,035  14,246    +5.5%
              ---------------------------------------------------------------
    Canada    ASMs     1,455   1,395    +4.3%     18,672  18,010    +3.7%
              ---------------------------------------------------------------
              Load
               Factor   78.1%   78.7%   -0.6 pts    80.5%   79.1%   +1.4 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
              RPMs       633     618    +2.4%      7,890   7,746    +1.9%
    U.S.      ---------------------------------------------------------------
     Trans-   ASMs       858     837    +2.5%     10,217  10,017    +2.0%
     border   ---------------------------------------------------------------
              Load
               Factor   73.8%   73.8%    0.0 pts   77.2%    77.3%   -0.1 pts
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inter-
     national RPMs     1,626   1,591    +2.2%     23,711  23,101    +2.6%
              ---------------------------------------------------------------
              ASMs     2,171   2,083    +4.2%     28,858  28,071    +2.8%
              ---------------------------------------------------------------
              Load
               Factor   74.9%   76.4%   -1.5 pts    82.2%   82.3%   -0.1 pts
    -------------------------------------------------------------------------

    %SEDAR: 00001324EF

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