2. Air Canada Premier Airline in Canada

3. Air Canada Maintains and Strengthens Position in all Markets AC Other AC Other 2001 results based on start of the year. Estimated market share. 2002 results based on OAG Q1 2002 scheduled airline capacity share, published December, 2001 73% 14% 78% 16% 40% 10% 55% 12% 38% 11% 47% 15% 42% 13% 49% 25%

4. Q401: Encouraging Performance Despite Loss 2001 2000 (millions) Q4Q4 Change Oper. Revenue$2,117$2,590$(473) Oper. Expense2,4252,985(560) Oper. Income (Loss)(308)(395)87 Non-oper. Expense(82)(84)2 Income (Loss) Before Tax$(390)$(479)$89

5. * Pre-government assistance - US Industry = 6 majors % Operating Margin Best Operating Results* of any Major International Carrier in North America Q1Q2Q3Q4 AC US 0 -5 -10 -15 -20 -25 -30

6. Air Canadas 4 th Quarter RASM Outperforms Industry * Source ATA 2001/2000 % Change Q1Q2Q3Q4 AC US 5 0 -5 -10 -15 -20 -25

7. Unit Cost* Performance Outpaces Industry Throughout 2001 * adjusted for one-timers – US industry = 6 majors Q1Q2Q3Q4 AC US 10 8 6 4 2 0 -2 -4 2001/2000 % Change

8. More Air Canada Strengths Proven track record of superior service Top Brand recognition throughout Canada Labor contract stability Labor rates lower than U.S. carriers

9. Labor Contract Stability Air CanadaCanadian Maintenance and RampJune 2005- Flight AttendantsOct. 2001June 2004 PilotsApr. 2004- Customer Sales & ServiceMar. 2004-

10. Future Labor Cost Much Lower Than U.S. Carriers 200220032004 Maintenance and Ramp2.5% 2.5% 2.5% Flight Attendants--- Pilots 2.5% 2.5%- Customer Sales & Service 2.5% 2.5%- Air Canada

11. Favorable Competitive Landscape ServiceCompetitor Reductions Trans AtlanticCancellations: Virgin Toronto-London Sabena Montreal-Brussels Trans PacificReductions: Numerous carriers reduced service via U.S. EVATaiwan-Canada

12. Favorable Competitive Landscape ServiceCompetitor Reductions DomesticCanada 3000 ceases operations Nov/09 Transborder Cancellations: USA AA Boston-Halifax/Montreal/Ottawa UA Toronto-Denver USAir Toronto-Indianapolis Canada 3000Toronto-Newark, Los Angeles- Vancouver/Edmonton/Calgary/ Toronto Reductions: Chicago, LaGuardia, Denver, San Francisco, Seattle, Portland, Los Angeles, Houston, Cleveland, Indianapolis, Baltimore

13. Air Canadas Action Plan Launch new products Reduce capacity Renew fleet Lower unit costs Lower manpower levels

14. Air Canadas Products

15. Air Canada Hub – network Transborder and Domestic network Rapidair International Two-class Air Canada brand Air Canada code

16. Key feed to mainline Regional markets Good frequency coverage Distinct brand Unique code* * Air Canada codeshare Air Canadas Products

17. Low fare Lower cost Supplemental flying in key markets Sun, long haul domestic, transcontinental routes Distinct brand Air Canada code

18. Air Canadas Products Specialty charter Executive First configuration of surplus B-737 Focus on specialty charters (i.e. sports teams, etc.) Concierge service

19. Air Canadas Products Leisure, low yield Low cost Point-to-point, short haul Domestic/Transborder Distinct brand Unique code* * Air Canada codeshare

20. % Change in ASMs 2001 2002 Capacity Discipline Q1Q2Q3Q4Q1Q2Q3Q4 10 5 0 -5 -10 -15 -20

21. Smaller / Younger FleetChange Dec / 00Dec / 0101/00Dec/0202/01 74775- 25- 330/3401620+ 416- 4 767-200/3005145 - 644- 1 319/320/3218285+ 3104+19 7374326-1722- 4 DC9174-13-- 4 CRJ2525-25- Total Mainline241210-31216+ 6 Regional134114-20105-9 TOTAL375324-51321-3

22. Lower Unit Costs Fleet reconfiguration Lower cost on-board product Increased distribution efficiencies Increased airport productivity Maintenance / fuel / real estate

23. Manpower Levels Coming Down 30,000 32,000 34,000 36,000 38,000 40,000 Q4 2000Q2 2001Q4 2001 Full Time Equivalents

24. Good Liquidity $1.2 billion in year-end 2001 cash Approximately $3.0 billion of unencumbered assets –aircraft –engines and spares –inventory –real estate –lease deposit receivables –accounts receivable

25. 2002 Mainline Aircraft Deliveries Sale/Operating Leasebacks Leases A340-5002- A321-2007- A319-10053 A320-200-3 Total146

26. Low Cap Ex in 2002 ($ millions) Aircraft$602 Financing(658) Net$(56) Other203 Total Mainline$147 Subs15 Total$162

27. Significant Value in Air Canadas Business Units

28. Investment Considerations Commanding share of all markets served Solid hub and network strategy Traffic almost back to normal Pricing recovering Industry capacity rationalized Unit costs coming down Adequate liquidity Low capital expenses going forward Substantial business unit value

29. Caution Concerning Forward-looking Information: Certain statements made in this presentation may be of a forward-looking nature and subject to important risks and uncertainties. The results indicated in these statements could differ materially from actual results for a number of reasons, including without limitation, general industry, market and economic conditions, the ability to reduce operating costs and fully integrate the operations of Canadian Airlines, employment relations, energy prices, currency exchange rates, interest rates, changes in laws, adverse regulatory developments or proceedings and pending litigation. Any forward-looking statements contained in this presentation represent Air Canadas expectations as of February 11, 2002 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.