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Montie Brewer

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It is significant that these record loads have been achieved at the same time we are benefiting from strong yields and steadily increasing capacity system-wide, showing the success of our measured approach to growth.

Traffic exceeded 2004 levels over the same month in all sectors except for Latin America, where it remained flat.

Air Canada achieved two record-breaking performances in January. Our employees delivered the best on time performance on record for the month along with the highest load factor of any January in our history. The airline's overall performance remained strong, particularly in North America with Air Canada and Air Canada Jazz together reporting a 7.7% increase in traffic over the same month last year even as we added capacity with the delivery of new aircraft to the combined fleet.

I am delighted that Air Canada has reported record loads for 24 consecutive months, but it is even more satisfying that these load factors are being achieved with increase capacity and improved yields. While a buoyant economy and travel market are creating favorable conditions for the airline, it is important to recognize that it is our new business model that is allowing us to seize the opportunity. Our simplified fare structure, product innovations such as flight passes, and strong customer service delivered by our hard working employees are leading more people to choose Air Canada when they fly.

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