A dramatic improvement was there after the Air Canada reported that it lost $56 million in the fourth quarter. This news resulted in the increase of shares of Canada's largest airline by 7.6 per cent on the Toronto Stock Exchange, where they closed 10 cents higher at $1.41.

If $108 million were not in gains on foreign exchange, the loss would have been considerably bigger.

"Over the past year we have overcome tremendous challenges to begin 2010 with satisfactory liquidity, reduced unit costs and measurable customer satisfaction improvements. We are now in a stronger position to manage through what is expected to be a slow start to the recovery for the sector ", said CEO Calin Rovinescu. As lower fuel and favorable foreign exchange trimmed $213 million of costs, the airline profited in the final period of the year by an 8 per cent drop in operating expenses.

By adding 74 new daily flights in a crucial battleground, Air Canada is seeking to tempt corporate customers.