- System passenger load factor at 77.3% - highest ever for December
- Domestic passenger load factor at 77.2% - highest ever for December

MONTREAL, Jan. 5 /CNW Telbec/ - Air Canada reported a system load factor of 77.3 per cent in December 2005. The mainline carrier flew 7.4 per cent more revenue passenger miles (RPMs) in December 2005 than in December 2004, according to preliminary traffic figures. Overall, capacity increased by 4.5 per cent, resulting in a load factor of 77.3 per cent, compared to 75.2 per cent in December 2004; an increase of 2.1 percentage points. In the domestic market, mainline capacity decreased by 2.5 per cent and traffic decreased by 2.3 per cent resulting in a domestic load factor of 77.2 per cent - a 0.2 percentage point increase year over year.

Jazz, ACE's regional subsidiary, flew 86.1 per cent more revenue passenger miles in December 2005 than in December 2004, according to preliminary traffic figures. Capacity increased by 82.1 per cent, resulting in a load factor of 69.7 per cent, compared to 68.2 per cent in December 2004; an increase of 1.5 percentage points.

North American traffic, on a combined basis for Air Canada and ACE's regional carrier, Jazz, rose 9.9 per cent.

"In December, Air Canada achieved a strong performance overall throughout its network along with a 21st consecutive month of record load factors," said Montie Brewer, President and Chief Executive Officer. "Traffic exceeded 2004 levels over the same month in all sectors except for Latin America where it remained flat. Our North American performance remains strong with Air Canada and Air Canada Jazz together reporting a 9.9 per cent increase in traffic over last year.

"We are very pleased at having achieved ongoing load factor growth over the past twelve months during a time in which we added 48 new regional jet aircraft to the combined fleet. These new aircraft, 31 of which are in the 75-100 seat category, have allowed us to take advantage of strategic growth opportunities by deploying the right aircraft in the right market at the right time.

"I am proud of Air Canada's employees who once again handled record volumes in December and exceeded operational performance goals during a month of challenging weather conditions."

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.

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    ------------------------------------------------------------------------
                     AIR CANADA MAINLINE (Includes Jetz)
    ------------------------------------------------------------------------
                                 DECEMBER                  YEAR-TO-DATE
                          --------------------------------------------------
                          2005    2004    Change    2005    2004    Change
    ------------------------------------------------------------------------
    Traffic
    (RPMs
     millions)           3,397   3,163     +7.4%  44,177  41,653     +6.1%
    ------------------------------------------------------------------------
    Capacity
    (ASMs
    millions)            4,397   4,208     +4.5%  55,169  53,766     +2.6%
    ------------------------------------------------------------------------
    Load Factor          77.3%   75.2%  +2.1 pts   80.1%   77.5%  +2.6 pts
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
              RPMs         907     928     -2.3%  12,911  12,666     +1.9%
              --------------------------------------------------------------
    Canada    ASMs       1,175   1,205     -2.5%  16,008  16,362     -2.2%
              --------------------------------------------------------------
              Load
               Factor    77.2%   77.0%  +0.2 pts   80.7%   77.4%  +3.3 pts
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
              RPMs         595     534    +11.4%   6,730   6,349     +6.0%
              --------------------------------------------------------------
    U.S.      ASMs         825     800     +3.1%   8,888   9,131     -2.7%
     Trans-   --------------------------------------------------------------
     border   Load
               Factor    72.1%   66.8%  +5.3 pts   75.7%   69.5%  +6.2 pts
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
              RPMs         832     718    +15.9%  11,839  10,907     +8.5%
              --------------------------------------------------------------
    Atlantic  ASMs       1,009     877    +15.1%  14,254  13,441     +6.0%
              --------------------------------------------------------------
              Load
               Factor    82.5%   81.9%  +0.6 pts   83.1%   81.1%  +2.0 pts
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
              RPMs         640     589     +8.7%   8,509   8,062     +5.5%
              --------------------------------------------------------------
     Pacific  ASMs         783     763     +2.6%  10,488   9,899     +6.0%
              --------------------------------------------------------------
              Load
               Factor    81.7%   77.2%  +4.5 pts   81.1%    81.4%  -0.3 pts
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
              RPMs         423     394     +7.4%   4,188   3,669    +14.1%
              --------------------------------------------------------------
    Latin     ASMs         605     563     +7.5%   5,531   4,933    +12.1%
     America  --------------------------------------------------------------
     & Other  Load
               Factor    69.9%   70.0%  -0.1 pts   75.7%   74.4%  +1.3 pts
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------

                 ACE AVIATION HOLDINGS INC. REGIONAL (Jazz)
    ------------------------------------------------------------------------
                                 DECEMBER                 YEAR-TO-DATE
                          --------------------------------------------------
                          2005    2004  Change      2005    2004    Change
    ------------------------------------------------------------------------
    Traffic
     (RPMs millions)       255     137    +86.1%   2,490   1,682    +48.0%
    ------------------------------------------------------------------------
    Capacity
     (ASMs millions)       366     201    +82.1%   3,502   2,615    +33.9%
    ------------------------------------------------------------------------
    Load Factor          69.7%   68.2%  +1.5 pts   71.1%   64.3%  +6.8 pts
    ------------------------------------------------------------------------
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    %SEDAR: 00020954EF