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Air Canada adjusts fares in response to record high fuel prices

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MONTREAL - Air Canada today announced that in response to record high fuel prices, it is adjusting fares to reflect additional operating costs. The fare increase applies to most fare types including published, web and other special fares for travel on Air Canada, Air Canada Jazz and Air Canada codeshare flights for travel within Canada and between Canada and the United States.

Base fares for flights within Canada are being increased each way by CAD$5 on short haul flights up to 300 miles (483 kms), CAD$8 on medium haul flights between 301-999 miles (484-1608 kms), and CAD$12 on long haul flights of 1000 miles and more (1609 kms). Base fares for flights between Canada and the United States are being increased each way by CAD$12 (USD$10).

The increases come into effect on tickets issued beginning August 12, 2005 for all domestic Canada travel, and are effective immediately for all transborder U.S. travel.

These increases do not affect Air Canada's current limited time offering of special low fares to most of its destinations network wide, available for sale until August 18, 2005, for travel until December 15, 2005. Departure dates for international destinations vary. More details on Air Canada's special low fares are available at www.aircanada.com , and through travel agents.

The cost of fuel is the second largest operating expense for airlines after labour. In January 2004, Air Canada led the Canadian industry by incorporating fuel surcharges into domestic Canada fares. The airline will continue to monitor fuel prices closely and adjust fares accordingly.

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