Continued Strong EBITDAR Margins

Overall Risk Profile is Significantly Reduced Stronger Balance Sheet • Record level of unrestricted liquidity • Lower leverage ratio and improved credit ratings Pension Risk Addressed* ● $1.9 billion pension solvency surplus as at January 1, 2017 • • 75% of pension liabilities are currently matched with fixed income products may increase matched fixed income allocation by 10% Projected to remain in a pension solvency surplus position with no past and current service payments for at least 2018, 2019 and 2020 * For more information, refer to section 6.6 of Air Canada's Second Quarter 2017 MD&A and section 9.7 of Air Canada's 2016 MD&A 104

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