Air Canada Reports Record September Load Factor

MONTREAL, Oct. 3, 2012 /CNW Telbec/ – For the month of September, Air Canada reported a record system load factor of 84.9 per cent, versus 82.8 per cent in September 2011, an increase of 2.1 percentage points. System traffic increased 3.1 per cent on a system-wide capacity increase of 0.5 per cent. Air Canada reports traffic results on a system-wide basis, including regional airlines from which Air Canada purchases capacity.

“For the month of September, Air Canada reported a record load factor of 84.9 per cent, surpassing our previous record for the month by 2.1 percentage points,” said Calin Rovinescu, President and Chief Executive Officer. “Air Canada generated greater traffic in all markets the airline serves, with system wide growth of 3.1 per cent on a capacity increase of 0.5 per cent through higher utilization of our existing fleet. These strong results underscore the effectiveness of our disciplined capacity management and award-winning product. I thank our employees whose focus on taking care of our customers has been instrumental in earning their loyalty.”

The Additional Notes will mature on January 15, 2016 and will bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2013. Interest on the Additional Notes will accrue from September 26, 2012.

The Company intends to use the proceeds of the offering to fund the acquisition of commercial aircraft and for other general corporate purposes.

The Additional Notes have not been registered under the Securities Act or applicable state securities laws and, unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.