AC POSTS PRELIMINARY Q1 RESULTS

Air Canada has released preliminary results for the first quarter of 2013 which sees the carrier posting an adjusted net loss of approximately $143 million compared to an adjusted net loss of $162 million in the first quarter of 2012. AC had a net loss of approximately $260 million versus a net loss of $274 million in the first quarter of 2012. It had an operating loss of approximately $106 million versus an operating loss of $91 million in the first quarter of 2012. EBITDAR (earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent) of approximately $145 million versus $174 million in the first quarter of 2012. Air Canada issued the preliminary statement pursuant to its obligations under applicable Canadian securities laws to enable it to disclose this information in meetings as it explores a range of debt financing opportunities. Air Canada does not intend to continue to provide preliminary results or to provide guidance for future periods in respect of RASM, EBITDAR, operating income, net income, adjusted net income and adjusted net debt. In the first quarter of 2013, Air Canada’s financial results were negatively impacted by an estimated $10 million due to flight cancellations caused by severe weather conditions and operational challenges at the airline’s major Canadian airport hubs, as well as aircraft deicing service delays at Toronto Pearson International Airport. A higher proportion of leisure passengers versus business passengers, in part due to a shift of the Easter holiday, and an unfavourable foreign currency impact on passenger revenues also contributed to the lower operating results year-over-year. In addition, Air Canada expects to record an impairment charge of $24 million related to Airbus A340-300 aircraft (none of which are operated by Air Canada) which is reflected in Air Canada’s preliminary operating loss and net loss results. Air Canada estimates that its passenger revenue per available seat mile (“RASM”) in the first quarter of 2013, on a system-wide basis, increased by approximately 1.1% as compared to the first quarter of 2012, due to passenger load factor improvements partly offset by lower yields. Air Canada also estimates that, in the first quarter of 2013, its adjusted cost per available seat mile (“adjusted CASM”), which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items (such as impairment charges) increased approximately 1.4% compared to the first quarter of 2012, a more favourable outcome than the range of the 3% to 4% increase previously projected in its February 7, 2013 news release. The result was better than forecast due largely to Air Canada having recorded favourable accrual adjustments of $15 million which had not been previously projected, and to timing of certain maintenance events. Adjusted net debt is estimated to be $3,987 million at March 31, 2013, a decrease of $246 million from March 31, 2012, with cash and short-term investments estimated to represent 17% of 12-month trailing operating revenues at the end of the first quarter of 2013. Air Canada’s system capacity, as measured by available seat miles (“ASMs”), in the first quarter of 2013 was 1.1% lower than the first quarter of 2012, within the range of the 0% to 1.5% decrease previously projected in its Feb. 7, 2013 news release.