Company Profile For Air Canada

Air Canada is a domestic and international full-service airline and a provider of scheduled passenger services in the domestic market, the Canada-United States market, as well as in the Canada-Europe and Canada-Pacific markets. Passenger transportation is the principal business of Air Canada and, during the year ended December 31, 2003, represented 82% of its total operating revenues. Air Canada's primary hubs are located in Toronto, Montreal and Vancouver. Air Canada also provides passenger, cargo and ground handling services to other airlines, including major foreign airlines at Canadian and international airports. During 2003, Air Canada, ZIP Air Inc. and Air Canada Jazz operated, on average, approximately 1,246 scheduled flights each day and carried approximately 28 million passengers with a fleet of 308 aircraft. On January 27, 2003, Air Canada announced that it had entered into an agreement to sell a 35% interest in Aeroplan to Onex Corporation.

BRIEF: For the six months ended 30 June 2004, Air Canada, Inc.'s operating revenues increased 4% to C$4.34B. Net loss for the period decreased 3% to C$814M. Revenues reflect higher passenger and cargo revenues and other income. Lower loss reflects increased margins, decrease in salaries, wages & benefits, lower aircraft rent & expenses on aircraft maintenance and decrease in communication and information technology expenses.