TRANSFORMING INTO A GLOBAL CHAMPION slide image

TRANSFORMING INTO A GLOBAL CHAMPION

BUSINESS PLAN ON TARGET Record EBITDAR(1) of $1,248M and record operating income of $896M in Q3 2016, and on a 12-month trailing basis to September 30, 2016, EBITDAR(1) margin was 19.0% and ROIC(1) was 15.5% Fleet initiatives and capital programs on target 21 B787s in operating fleet - - B787s meeting financial and operational expectations Delivering a permanently lower cost structure on track to realizing CASM savings of 21% (excluding impact of FX and fuel prices) by the end of 2018 when compared to 2012 baseline Enterprise and financial risk reduced Route diversification Balance sheet leverage Fleet flexibility As reported on November 7, 2016 Pension - Long-term labour contracts Business Plan (1) These measures are non-GAAP financial measures used by Air Canada in an effort to provide additional information on Air Canada's financial and operating performance. Such measures however are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Reconciliations of these measures to comparable GAAP measures for the relevant periods can be found in Air Canada's MD&A reports, available at aircanada.com. 4
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