AIR CANADA HAS STRONG SECOND QUARTER

Air Canada has reported adjusted net income of $115 million or $0.41 per diluted share in the second quarter of 2013 compared to an adjusted net loss of $7 million or $0.02 per diluted share in the second quarter of 2012. Second quarter EBITDAR amounted to $385 million compared to EBITDAR of $312 million in the second quarter of 2012, an increase of $73 million or 23%. On a GAAP basis, Air Canada’s net loss was $23 million or $0.09 per diluted share compared to a net loss of $161 million or $0.59 per diluted share in the same quarter of 2012. “Air Canada delivered its best second quarter financial performance in the Corporation’s history, with records reported in all three measures of operating income, adjusted net income and EBITDAR,”said Calin Rovinescu, president and chief executive officer. “These results are a clear indication that we are gaining momentum in our transformation towards sustainable profitability at Air Canada and underscore our Company-wide efforts to achieve cost containment and continue to improve on our revenue and yield performance. “Our success in the quarter was not only financial — I am also especially pleased to report ongoing improvements in operational performance for the second consecutive quarter, with a 30% improvement in On-Time Performance (OTP) for the quarter compared to the previous year.”He added, “Market response to the launch of our new leisure carrier, Air Canada rouge, on July 1 has been very positive and our plans are on track for growing the Air Canada rouge fleet to serve more holiday destination markets where we can now compete on a more cost effective basis. In addition, in early July, we began operating the first of five new Boeing 777-300ER aircraft, marking the first significant growth in the mainline wide-body fleet in 10 years to support continued development of our international network and Toronto hub as our North American gateway. These aircraft also debut our new Premium Economy cabin, offering customers a high-value option for enhanced comfort and service on select international routes.”