Continued Strong EBITDAR Margins

Non-GAAP Financial Measures EBITDAR • • EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) is commonly used in the airline industry to view operating results before depreciation, amortization and impairment, and aircraft rent as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets EBITDAR excludes special items as such items would distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful ROIC (Adjusted Net Income (Loss) before interest divided by Invested Capital) • . · Air Canada uses return on invested capital ("ROIC") as a means to assess the efficiency with which it allocates its capital to generate returns ROIC is based on adjusted pre-tax income (loss), excluding interest expense and implied interest on operating leases Invested capital includes average year-over-year long-term debt, average year-over-year finance lease obligations, average year-over-year shareholders' equity and the value of capitalized operating leases (calculated by multiplying annualized aircraft rent by 7) 124

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