Air China Regulatory News (AIRC)

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中國國際航空股份有限公司

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 00753)

ANNOUNCEMENT ON KEY OPERATING DATA OF DECEMBER 2018

The enclosed announcement (the "SSE Announcement") was published by Air China Limited (the "Air China") on the Shanghai Stock Exchange on 15 January 2019, which contains combined operating data for December 2018 for Air China and its subsidiaries (collectively, the "Group").

This announcement enclosing the SSE Announcement is made by Air China pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The data in the enclosed SSE Announcement was calculated based on the internal statistics of the Group, which may differ from the data disclosed in the relative periodic reports.

Investors are hereby reminded of the risks which may results from inappropriate reliance upon or utilization of the information given above.

By Order of the Board

Air China Limited

Zhou Feng Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 15 January 2019

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Xue Yasong, Mr. John Robert Slosar, Mr. Wang Xiaokang*, Mr. Liu Deheng*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.

* Independent non-executive director of the Company

SSE ANNOUNCEMENT

The SSE Announcement is written in Chinese, with no official English translation. The English translation is provided solely for reference only. In case of any discrepancy between the two versions, the Chinese version shall prevail. The full version of the SSE Announcement is as follows:

AIR CHINA LIMITED

ANNOUNCEMENT ON KEY OPERATING DATA OF DECEMBER 2018

In December 2018, Air China Limited (the "Company"), and its subsidiaries (the "Group") recorded an increase in combined passenger traffic (measured by revenue passenger kilometers (the "RPK")) as compared to the same period last year as well as compared to the same period last month. Passenger capacity (measured by available seat kilometers (the "ASK")) and passenger traffic recorded a year-on-year increase of 8.0% and 5.8% respectively. For domestic routes, passenger capacity and passenger traffic increased by 8.4% and 5.0% respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased by 7.2% and 6.6% respectively, as compared to the same period last year. Passenger capacity on regional routes increased by 10.9%, and passenger traffic recorded an increase of 9.7%, as compared to the same period last year. The overall passenger load factor was 78.6%, representing a decrease of 1.7 percentage points as compared to the same period last year. The passenger load factor for domestic routes, international routes and regional routes decreased by 2.6, 0.4 and 0.9 percentage points year-on-year respectively.

In terms of cargo operations, in December 2018, cargo and mail traffic (measured by revenue freight tonne kilometers (the "RFTK")) maintained growth as compared to the same period last year and leveled off as compared to the same period last month. Freight tonnage carried recorded an increase on both a year-on-year basis and on a month-on-month basis. Cargo capacity (measured by available freight tonne kilometers (the "AFTK")) increased by 3.6% year-on-year. Cargo and mail traffic increased by 2.8%, and the volume of cargo and mail carried increased by 1.1% as compared to the same period last year. The cargo load factor was 56.0%, representing a year-on-year decrease of 0.4 percentage points.

In December 2018, the Group introduced nine aircraft, including five B737MAX, one A350, and three A320NEO series aircraft, and retired two B777-200, one B737-700, one B737-800, and one A319 aircraft. As at the end of December 2018, the Group operated a fleet of 684 aircraft, including 287 self-owned aircraft, 193 aircraft under finance lease and 204 aircraft under operating lease.

The following table sets forth key operating data for December 2018:

Notes:

1. "ATK(s)" refers to the number of tonnes of capacity available for transportation multiplied by the kilometers flown

2. "ASK(s)" refers to the number of seats available for sale multiplied by the kilometers flown

3. "AFTK(s)" refers to the number of tonnes of capacity available for the carriage of cargo and mail multiplied by the kilometers flown

4. "RTK(s)" refers to the revenue load (passenger and cargo) in tonnes multiplied by the kilometers flown

5. "RPK(s)" refers to the number of revenue passengers carried multiplied by the kilometers flown

6. "RFTK(s)" refers to the revenue cargo and mail load in tonnes multiplied by the kilometers flown

7. "Passenger Load Factor" refers to revenue passenger kilometers expressed as a percentage of available seat kilometers

8. "Cargo and Mail Load Factor" refers to revenue freight tonne kilometers expressed as a percentage of available freight tonne kilometers

9. "Overall Load Factor" refers to RTKs expressed as a percentage of available tonne kilometers

The key operating data above was calculated based on the internal statistics of the Group, which may differ from the data disclosed in the relative periodic reports. Investors are hereby reminded of the risks which may results from inappropriate reliance upon or utilization of the information given above.

Board of Directors of Air China Limited

Beijing, the PRC, 15 January 2019