Continued Strong EBITDAR Margins

We've Set New Targets for the Next Level of Performance Improvement Previous 2015-2018 Targets (2) Annual EBITDAR Margin (1) 15% - 18% Annual ROIC (1) Free Cash Flow (1) 13% -16% 2017 Outlook (3) 2018-2020 Targets (4) 17% 19% in 2017 and 2018 11% - 14% in 2017 and 2018 - $600M $900M in 2017 17% - 20% 13% -16% $2.0-$3.0 billion (Cumulative over the period) Leverage Ratio (1) (5) 2.2 by end of 2018 2.2 by end of 2018 1.2 by end of 2020 (1) For additional information on non-GAAP financial measures, refer to the Appendix of this presentation (2) As reported at Air Canada's 2015 Investor Day on June 2, 2015 (3) As reported on August 1, 2017 (4) The impact of accounting standard changes discussed under "Accounting Standard Changes" of this presentation are not factored into Air Canada's 2017 Investor Day projections (5) The 2020 leverage ratio target is based on a foreign exchange rate of US$1 = C$1.32 73

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