1. Fourth Quarter 2002 Preliminary & Unaudited February 6, 2003 Note to Internet viewers: Please use “NOTES PAGES” view to access all notes and text.

2. Agenda - 4th Quarter Highlights Operating Statistics Competitive Environment Revenue Highlights Income Highlights

3. Operating Results * Improve By $46 Million Before Non-recur. Labour Charge of $26 mln. *Preliminary & unaudited

4. Q4 Net Interest Exp.* Improves $14 Million *Preliminary & unaudited

5. Q4 Stats At a Glance Mainline Operations

6. Strength In Transborder U.S. and International Pushes Load Factor Up Mainline Operating Statistics

7. Canada and International Capacity Rises While U.S. Remains Unchanged (Y-O-Y Changes in Mainline Capacity) % Change in ASMs

8. Dom. Trfc. Weak Due to Incr. Competition. U.S. Recovers & Pacific Remains Strong. Comp. is to Particularly Weak Q4 01 Period. (Y-O-Y Changes in Mainline Traffic) % Change in RPMs

9. System Yield Continues Recovery But Still Well Below 2000 Levels (Y-O-Y Changes in Mainline Passenger Yield) % Change in Yield

10. System RASM Up As Higher U.S. & Very Strong Int’l Offsets Weak Canada (Y-O-Y Changes in Mainline Revenue per ASM) % Change in RASM

11. Q4 Revenue Up on Recovering U.S. and Continued International Strength (Y-O-Y Changes in Mainline Passenger Revenue) % Change in Revenue

12. Load Factor Decline Pushes RASM Down Q4’01 Q1’02 Q2’02 Q3’02 Q4’02 Capacity - Canada (Y-O-Y Changes in Capacity) % Change in ASMs Yield - Canada (Y-O-Y Changes in Passenger Yield) RASM - Canada (Y-O-Y Changes in Revenue per ASM) Load Factor- Canada (Y-O-Y Changes in Load Factor) % Change in RASM PP Change in Load Factor % Change in Yield Q4’01 Q1’02 Q2’02 Q3’02 Q4’02

13. Higher U.S. Load Factor & Improving Yield Pushes Up RASM Q4’01 Q1’02 Q2’02 Q3’02 Q4’02 Capacity - Transborder (Y-O-Y Changes in Capacity) % Change in ASMs Yield - Transborder (Y-O-Y Changes in Passenger Yield) RASM - Transborder (Y-O-Y Changes in Revenue per ASM) Load Factor- Transborder (Y-O-Y Changes in Load Factor) % Change in RASM PP Change in Load Factor % Change in Yield Q4’01 Q1’02 Q2’02 Q3’02 Q4’02

14. Other Int’l RASM Up On Continued Higher Load Factor And Yield Q4’01 Q1’02 Q2’02 Q3’02 Q4’02 Capacity - Other Int’l (Y-O-Y Changes in Capacity) % Change in ASMs Yield - Other Int’l (Y-O-Y Changes in Passenger Yield) RASM - Other Int’l (Y-O-Y Changes in Revenue per ASM) Load Factor- Other Int’l (Y-O-Y Changes in Load Factor) % Change in RASM PP Change in Load Factor % Change in Yield Q4’01 Q1’02 Q2’02 Q3’02 Q4’02

15. System RASM Up On Higher Load Factor And Improved Yield Q4’01 Q1’02 Q2’02 Q3’02 Q4’02 Capacity - Total (Y-O-Y Changes in Capacity) % Change in ASMs Yield - Total (Y-O-Y Changes in Passenger Yield) RASM - Total (Y-O-Y Changes in Revenue per ASM) Load Factor- Total (Y-O-Y Changes in Load Factor) % Change in RASM PP Change in Load Factor % Change in Yield Q4’01 Q1’02 Q2’02 Q3’02 Q4’02

16. U.S. & Int’l Services Drive Higher System RASM - Unit Cost Continues Improvement Q4’01 Q1’02 Q2’02 Q3’02 Q4’02 Canada RASM % Change Y-O-Y Other Int’l RASM Total System USA RASM % Change Y-O-Y Q4’01 Q1’02 Q2’02 Q3’02 Q4’02

17. U.S. Carriers Posted Larger Increases Over The Post 9-11 4th Quarter ‘01 (Y-O-Y Traffic Change) % Change in RPMs **Not available **

18. Salaries & Wages: Manpower level up; average salary & benefits cost up (Air Canada - Mainline)

19. Average Salary Up 1.5%, Employee Levels Up 594 or 1.7% (Y-O-Y Change - Total Salaries * & Employees*) *Mainline % Change Y-O-Y

20. Fuel: Total price unchanged due favourable hedging comparison to 2001 (Air Canada - Mainline)

21. Mainline Cost Per Litre Up 0.4% While Productivity Up 4.9% (Fuel Productivity* & Unit Cost*) *Mainline % Change Y-O-Y

22. All Expense Categories Down except Acft. Rent & User Fees - Mtce. & Food & Bar Unchanged % Change Y-O-Y Q4 2002/2001 RPMs ASMs COMM. FOOD & BAR A/C MTCE USER FEES A/C RENT OTHER DEP.

23. Q4 Net Unit Cost Down 1.0% (Cost Per ASM*) *Mainline, adjusted for non-ASM revenue % Change Y-O-Y

24. Other Reductions (commissions, I.T., bld. rent, crew cycle, workers comp., etc.) Key To Net CASM* Improvement Of 1.0%** *Mainline ** Not adjusted for $43 mln Q4/01one-time reduction in benefits expense Labour** & Benefits FuelUnit cost** decrease net of non- ASM revenue Other Effect of non-ASM revenue

25. Air Canada’s Net Unit Cost At Low End Of N.A. Majors *Adjusted for non-ASM producing activity. (Unit Cost* per ASM - Q4‘02 & Q4‘01) U.S. cents

26. Balance Sheet* - Liquidity is Adequate (Air Canada - Consolidated) *Preliminary & unaudited NM - not meaningful