Air Canada flight attendants say deal doesn't fly

NEWS RELEASE

AIR CANADA

****************************** Air Canada comments on CUPE ratification vote

MONTREAL - (August 27, 2011) - Air Canada has been advised by the Canadian Union of Public Employees that the tentative agreement reached by the Company and the CUPE Negotiating Committee on August 1, 2011 was not ratified by the union membership.

Air Canada confirms it is business as usual for the airline and that customers can continue to book Air Canada flights with confidence.

CUPE represents approximately 6,800 flight attendants and its collective agreement expired on March 31, 2011.

Air Canada is Canada's largest domestic and international full-service airline providing scheduled and charter air transportation for passengers and cargo to more than 175 destinations on five continents.

Canada's flag carrier is the 15th largest commercial airline in the world and serves 33 million customers annually.

Air Canada is a founding member of Star Alliance.

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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.

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.

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