Looks like AC has clarified it:
What are the additional charges in my Fare?
Fuel NAV Canada Insurance ATSC Airport Fees International Destinations
Note: This information is intended as a guideline only. Actual fees and surcharges are subject to change and some exceptions apply.
Your fare may include NAV CANADA surcharges, Fuel surcharges and Insurance surcharges where applicable. Ticketable Airport Improvement Fees and the Air Travellers Security Charge (ATSC) are included in taxes component of your fare.
Canadian and US Destinations
Fuel Surcharges: For travel within Canada and between Canada and the U.S., the fuel surcharge is either 20 / 40 / or 60 CAD/USD based on distance.
NAV Canada Surcharge: Nav surcharges within Canada are either 9 / 15 / or 20 CAD based on distance. For transborder itineraries, 7.50 CAD / 7.50 USD each way. This surcharge is collected to cover the fees that Air Canada pays to NAV Canada to operate Canada's Air Navigation systems.
Insurance Surcharge: In order to account for the rising costs of aviation insurance, Air Canada along with other North American carriers have implemented an insurance surcharge. This insurance surcharge is 3 CAD, each way for travel wholly within Canada. (Some exceptions apply).
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I guess they're taking advantage of the leeway given to them by our gutless senate.
Too bad I didn't know about this yesterday, I could have surveyed about 15 of them flying J on AC463 to see how many voted for the watered down version of the legislation.