ANNUAL REPORT 2013

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HigHligHts
Fourth Quarter Full Year $ Change
55 88 (34) 54 54 54 8 0.1 pp 3.0 pp (6) 76 (0.4) pp 2.4 pp 346 (255) 214 3.1 pp $0.20 $0.03 % Change 2.5 3.5 (0.9) pp (0.6) (1.7) (1.6) (1.8) (2.3) 0.2 0.3 (0.2) (1.8) 1.1 0.3 0.2 3.0

The financial and operating highlights for Air Canada for the periods indicated are as follows.

(Canadian dollars in millions, except where indicated) Financial Performance Metrics Operating revenues Operating income Non-operating expense (1) Income (loss) before income taxes and discontinued operations Net income (loss) from continuing operations Net loss from discontinued operations – Aveos Net income (loss) Adjusted net income (loss) (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3) (4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3) (4) EBITDAR margin % (4) Unrestricted liquidity (5) Free cash flow (6) Adjusted net debt (7) Return on invested capital ("ROIC") %(8) Diluted earnings (loss) per share Adjusted net income (loss) per share – diluted (2) Operating Statistics (9) Revenue passenger miles (millions) ("RPM") Available seat miles (millions) ("ASM") Passenger load factor % Passenger revenue per RPM (“Yield”) (cents) Passenger revenue per ASM (“RASM”) (cents) Operating revenue per ASM (cents) Operating expense per ASM (“CASM”) excluding the impact of benefit plan amendments (cents) (3) Adjusted CASM (cents) (10) Average number of full-time equivalent ("FTE") employees (thousands) (11) Aircraft in operating fleet at period end Average fleet utilization (hours per day) Aircraft frequencies (thousands) Average aircraft flight length (miles) Economic fuel cost per litre (cents) (12) Fuel litres (millions) Revenue passengers carried (millions) (13)

2013
2,894 135