Air Canada reported first quarter 2016 record EBITDAR(1) (earnings before interest, taxes, depreciation, amortization and aircraft rent) of $460 million compared to EBITDAR of $442 million in the same quarter in 2015.  For the 12 months ended March 31, 2016, Air Canada's EBITDAR margin was 18.3 per cent. Air Canada recorded adjusted net income(1) of $85 million or $0.30 per diluted share compared to adjusted net income of $122 million or $0.41 per diluted share in the first quarter of 2015.  On a GAAP basis, in the first quarter of 2016, Air Canada reported operating income of $154 million compared to operating income of $200 million in the first quarter of 2015.  The airline reported net income of $101 million or $0.35 per diluted share in the first quarter of 2016 compared to a net loss of $309 million or $1.08 per diluted share in the first quarter of 2015.

"I am pleased to report strong financial results for the first quarter, as we continue to execute on our strategic initiatives including fleet modernization, international expansion and the growth of Air Canada rouge," said Calin Rovinescu, President and Chief Executive Officer.  "Despite somewhat unsettled economic times in Canadian resource markets, a very competitive domestic pricing environment, and a continued weak Canadian dollar in the quarter, we were able to increase our revenue base, increase our unrestricted liquidity, increase net cash flow from operations, deliver on our ROIC target, produce a record EDITDAR level and take delivery of four new Boeing 787-9 aircraft while maintaining our adjusted net debt level and leverage ratio.

"Our business model and the investments we are making towards building a sustainable, profitable business for the long term are delivering as planned and, as outlined in the Outlook section of this news release, we have now set out our expectation that full year 2016 EBITDAR will increase between 4 and 8 per cent from last year. This would set yet another record for Air Canada, underscoring the effectiveness of our business strategy and enhanced competitive position.

"We continue to see a marked increase in the number of international and U.S.-originating customers choosing Air Canada for their global travel plans.  The performance of Air Canada rouge continues to exceed our expectations and is allowing us to compete more effectively in leisure markets.  The next generation Boeing 787-9 aircraft that entered our fleet in the quarter are providing us with significant productivity improvements, allowing us to offer customers superior comfort and amenities.

"I would like to thank our 28,000 employees for their unwavering focus in taking care of our customers and for their part in achieving these strong financial results," concluded Mr. Rovinescu.