MONTREAL, April 13 /CNW Telbec/ - Air Canada mainline flew 6.6 per cent more revenue passenger miles (RPMs) in March 2004 than in March 2003, according to preliminary traffic figures. Overall, capacity increased by 3.8 per cent, resulting in a load factor of 76.3 per cent, compared to 74.3 per cent in March 2003; an increase of 2.0 percentage points.

Jazz, Air Canada's regional airline subsidiary, flew 8.3 per cent more revenue passenger miles in March 2004 than in March 2003, according to preliminary traffic figures. Capacity increased by 5.4 per cent, resulting in a load factor of 61.8 per cent, compared to 60.2 per cent in March 2003; an increase of 1.6 percentage points.

"Traffic results for March maintained their upward momentum growing 6.6 per cent on very strong demand for Southern leisure destinations, our new service to Delhi and an expanding domestic market. Within Canada, the transcontinental routes performed particularly well while on the transatlantic, higher demand on the United Kingdom and Germany routes offset the impact of our suspension of service to Italy and Spain," said Rob Peterson, Executive Vice President and Chief Financial Officer.

"In the coming months, year over year comparisons will become less meaningful as concerns over SARS and the war in Iraq severely suppressed the demand for air travel in 2003," said Mr. Peterson.

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.

    <<
    -------------------------------------------------------------------------
                      AIR CANADA MAINLINE (Includes Zip & Jetz)
    -------------------------------------------------------------------------
                                 MARCH                  YEAR-TO-DATE
                       ------------------------------------------------------
                       2004      2003  Change      2004      2003  Change
    -------------------------------------------------------------------------
    Traffic
     (RPMs millions)  3,399     3,190    +6.6%    9,648     9,186    +5.0%
    -------------------------------------------------------------------------
    Capacity
     (ASMs millions)  4,455     4,293    +3.8%   13,096    12,626    +3.7%
    -------------------------------------------------------------------------
    Load Factor        76.3%     74.3%   +2.0 pts  73.7%     72.8%   +0.9 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      970       907    +6.9%    2,742     2,596    +5.6%
              ---------------------------------------------------------------
    Canada    ASMs    1,283     1,262    +1.7%    3,769     3,644    +3.4%
              ---------------------------------------------------------------
              Load
              Factor   75.6%     71.9%   +3.7 pts  72.8%     71.2%   +1.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      680       730    -6.8%    1,912     2,121    -9.9%
    U.S.      ---------------------------------------------------------------
    Trans-    ASMs      969     1,076    -9.9%    2,810     3,160   -11.1%
    border    ---------------------------------------------------------------
              Load
              Factor   70.2%     67.8%   +2.4 pts  68.0%     67.1%   +0.9 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      768       771    -0.4%    2,015     2,125    -5.2%
              ---------------------------------------------------------------
    Atlantic  ASMs      919       927    -0.9%    2,658     2,747    -3.2%
              ---------------------------------------------------------------
              Load
              Factor   83.6%     83.2%   +0.4 pts  75.8%     77.4%   -1.6 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      583       484   +20.5%    1,716     1,411   +21.6%
              ---------------------------------------------------------------
    Pacific   ASMs      736       638   +15.4%    2,175     1,861   +16.9%
              ---------------------------------------------------------------
              Load
              Factor   79.2%     75.9%   +3.3 pts  78.9%     75.8%   +3.1 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              RPMs      398       298   +33.6%    1,263       933   +35.4%
              ---------------------------------------------------------------
    Other &
    Charter   ASMs      548       390   +40.5%    1,684     1,214   +38.7%
              ---------------------------------------------------------------
              Load
              Factor   72.6%     76.4%   -3.8 pts  75.0%     76.9%   -1.9 pts
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                         AIR CANADA REGIONAL (Jazz)
    -------------------------------------------------------------------------
                                 MARCH                  YEAR-TO-DATE
                       ------------------------------------------------------
                       2004      2003  Change      2004      2003  Change
    -------------------------------------------------------------------------
    Traffic
    (RPMs millions)     144       133    +8.3%      390       382    +2.1%
    -------------------------------------------------------------------------
    Capacity
    (ASMs millions)     233       221    +5.4%      666       650    +2.5%
    -------------------------------------------------------------------------
    Load Factor        61.8%     60.2%   +1.6 pts  58.6%     58.8%   -0.2 pts
    -------------------------------------------------------------------------
    >>