MONTREAL, April 6 /CNW Telbec/ - For the month of March, Air Canada reported a system load factor of 79.5 per cent, versus 82.1 per cent in March 2010, a decrease of 2.6 percentage points.  System traffic increased 4.2 per cent on a system-wide capacity increase of 7.6 per cent. Air Canada reports traffic results on a system-wide basis, including regional airlines from which Air Canada purchases capacity.

"We are encouraged by our advance bookings in all sectors, including the Atlantic and Pacific. The market has been absorbing the fare increases and surcharges we've implemented due to higher fuel costs. We expect EBITDAR levels for the first half of 2011 to be approximately at the same level as the first half of 2010," said Calin Rovinescu, President and Chief Executive Officer. "I thank our employees for their ongoing hard work and dedication to safely transporting customers in March, which is typically a busy month with many customers taking vacations during school breaks across the country."

EBITDAR is a non-GAAP measure. In addition, the EBITDAR outlook provided constitutes forward-looking statements within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks.  Please see sections below entitled "Caution Regarding Forward-Looking Information" and "Non-GAAP Measures".

In 2010 readership surveys, Global Traveler magazine readers voted Air Canada Best Airline in North America, and Business Traveler magazine readers voted Air Canada as the top airline in North America for Best Flight Attendants, Best In-Flight Services, Best Business Class Service, Best North American Airline for International Travel, as well as for Best Airline Web Site.

CAUTION REGARDING FORWARD-LOOKING INFORMATION 

Air Canada's public communications may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties, including those described below. Air Canada's expectation relating to EBITDAR assumes that the North American economy will continue to recover in 2011.  In addition, Air Canada expects that the Canadian dollar will trade, on average, at C$1.00 per U.S. dollar in the first quarter of 2011 and for the full year 2011 and that the price of fuel will average 76 cents per litre for the first quarter of 2011 and 87 cents per litre for the full year 2011. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, currency exchange and interest rates, employee and labour relations, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada's public disclosure file available at www.sedar.com. Any forward-looking statements contained in this news release represent Air Canada's expectations as of the date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

Non-GAAP Measures

EBITDAR is a non-GAAP financial measure commonly used in the airline industry to assess earnings before interest, taxes, depreciation, amortization and aircraft rent.  EBITDAR is used to view operating results before aircraft rent, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.  EBITDAR is not a recognized measure for financial statement presentation under GAAP and does not have a standardized meaning and is therefore not comparable to similar measures presented by other public companies.