#1AIR CANADA 2021 Annual Meeting of Shareholders MANAGEMENT'S REPORT Michael Rousseau President and Chief Executive Officer Air Canada June 29, 2021 A STAR ALLIANCE MEMBER MEMBRE DU RÉSEAU STAR ALLIANCE 801#22020 REVIEW BOEING 737 MAX AIR CANADA 0.0⁰⁰ 2#3Severe impact on airline global industry Operating Revenues 73% decline in passenger traffic Operating Income (Loss) Loss of nearly $3.8 billion 1,650 19,131 5,833 2019 2020 2019 (3,776) 2020 3#4Air Canada shares Stock has more than doubled since March 2020 55 55 50 45 40 35 30 25 322 20 тли $25.36 Monday, June 28, 2021 15 10 5 0 2017 2018 2019 2020 2021 4#5Air Canada team - Resilient, resourceful and professional 3M OPTIME 101 Face freeved 5#6SAFETY MEASURES Preferred Préférence AIR CANADA Preferred Faces Direct S Preferred Preference Preferred Préférence 6#7Jan. 2020 China flights suspended Apr. 2020 Masks must be worn by all customers May 2020 Pre-boarding temperature checks AIR CANADA CLEANCARE+ SOINPROPRE+ AIR CANADA China / Chine CANCELLED / ANNULÉ STAR ALLIANCE 7#8APEX+ HEALTH SAFETY powered by SimpliFlying DIAMOND CERTIFIED 2021 AIR CANADA CLEANGARE+ SOINPROPRE+ 8#9FINANCING AND COST SAVINGS SORTIE E AIR CANADA AIR CANADA ·rouge. AIR CANADA 0000 C March April May June July August September October November December#10Liquidity Strongest balance sheet • in the industry relative to size Raised nearly $6.8 billion in additional liquidity Ended the year with $8 billion in unrestricted liquidity Minimum of $1.7 billion in unencumbered assets Febuary March April May June July August September October November C December 10#11Cost-saving measures Operating expenses decreased by nearly $7.9 billion (45%) . Managed variable costs and reduced fixed expenses $1.7 billion savings through company-wide cost and capital reduction and deferral program Febuary March April May June July August September October November C December 11#12Necessary workforce reduction . Nearly 20,000 furloughed or let go. Preserved 15,000 jobs (40% of workforce) ⚫ June/July 2021 - 2,600 employees return to work C Febuary March April May June July August September October November December 12#13TRAVEL RECOVERY AIR CANADA Preferred Préférence 13#14#timetotravel . Case counts dropping Vaccination programs advancing Governments relaxing restrictions FREQUENT FLYER SURVEY: 46% planning to travel (between now and Sept.) 14#15Maple Leaf Lounge @ la table RESTORING SERVICES New Maple Leaf Loung la table service. Nau service Salon Feuille drable la table Cadle AIR CANADA WERSTE OF CODE Open "acanada.com" in Safari ด 15#16Touchless services ✓ Touchless check-in ✓ Touchless baggage- drop and lounge services ✓ Expand facial recognition biometrics AIR CANADA TouchFree Bag Check TAG PRINTING Enregistrement des bagages SansContact IMPRESSION D'ÉTIQUETTE PLEASE SCAN YOUR BOARDING PASS BAR CODE Check-in must have been previously completed. VEUILLEZ BALAYER LE CODE À BARRES DE VOTRE CARTE D'ACCÈS À BORD L'enregistrement doit avoir été effectué préalablement. STAR ALLIANCE Toronto Pearson 16#17Air Canada Cargo ✓ Capitalized on increased demand for air cargo ✓ Cabin space conversions ✓ Over 4,000 all-cargo flights in 2020 17#18Dedicated freighter conversions AIR CANADA CARGO 18#19rivo Welcome to the speed of now. Meet your new shipping service. Track your parcel Let's do Business Feedback#20AIR CANADA ONGOING PROGRAMS AEROPLAN K. NICOLAS 20 20#21Changes to our fleet MAINLINE Boeing 787-8 Boeing 787-9 Boeing 777-300ER Boeing 777-200LR Airbus A330-300 Boeing 737 MAX 8 Airbus A321 Airbus A320 Airbus A319 Airbus A220 Total C-FTJV- AIR CANADA C-GROW- CURRENT 8 29 19 6 16 24 / 40 15 21 16 AIR CANADA 00000000000 15 / 33 169 21#22New Passenger Service System (Reservation system) • Complex multi-year project • Greater ability to: - - serve customers manage inventory work with partner carriers 22#23Transformed Aeroplan Improved value on flight rewards More options New relationships (i.e. Starbucks) Strong relationships with major credit card partners Aeroplan AEROPLAN 23#24ESG . Continued to promote well-being of our People and our Customers • Emphasis on diversity and inclusion ● Air Canada Foundation 859 24 24#25Environmental initiatives • Installed electric chargers for airport vehicles • CERTIFIED AIRLINE united for AIRLINE EGISTERED E IATA STAGE 2 wildlife EnvA REG Diverted more than 800 tonnes of waste from landfills Illegal wildlife trade certification ENVIRONMENTAL ASSESSMENT 25#26AIR CANADA -- DOEAMLINE Air Canada is committed to achieving net-zero greenhouse gas emission by the year 2050 Establish interim goals Invest $50 million in sustainable aviation fuel and other measures 26#27FOCUSED ON A SAFE RESTART Baggage Reclaim and Exit Connections 27#28Re-establish ourselves as a Canadian global champion Rebuilding a strong global network • • • ● Hub-to-hub flying Seamless connectivity Consistent superior customer service Diversified revenue base (Aeroplan Cargo) Reduce costs and increase revenues 28#29Key investments in technology AIR CANADA PORT SPORT Visit our COVID-19 hub Learn more B • AI • Machine learning and analytics Mobile and digital technologies NEW arning. Link now G 000 Aeroplan 29#30Create meaningful personal connections through the customer experience 30#31Thank you Merci aircanada.com