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 JULY 2018

The enclosed announcement (the "SSE Announcement") was published by Air China Limited (the "Air China") on the Shanghai Stock Exchange on 14 August 2018, which contains combined operating data for July 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, 14 August 2018

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. John Robert Slosar, Mr. Xue Yasong, 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 JULY 2018

In July 2018, Air China Limited (the "Company"), and its subsidiaries (the "Group") maintained growth 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 12.0% and 10.0% respectively. For domestic routes, passenger capacity and passenger traffic increased by 9.9% and 8.6%, respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased by 15.3% and 12.4%, respectively, as compared to the same period last year. Passenger capacity on regional routes increased by 8.9%, and passenger traffic recorded an increase of 8.4%, as compared to the same period last year. The overall passenger load factor was 80.5%, representing a decrease of 1.4 percentage points as compared to the same period last year. The passenger load factor for domestic, international and regional routes decreased by 1.0, 2.0 and 0.4 percentage points respectively.

The Company launched a Chengdu-London route (three times a week) and Wuhan-Linfen-Beijing route (five times a week) on 3 July 2018 and 15 July 2018 respectively.

In terms of cargo operations, in July 2018, cargo and mail traffic (measured by revenue freight tonne kilometers (the "RFTK")) maintained growth as compared to the same period last year as well as compared to the same period last month. Freight tonnage carried recorded an increase on a year-on- year basis and a decrease on a month-on-month basis. Cargo capacity (measured by available freight tonne kilometers (the "AFTK")) increased by 8.0% year-on-year. Cargo and mail traffic increased by 5.3% and the volume of cargo and mail carried increased by 5.5% as compared to the same period last year. The cargo load factor was 60.2% in July 2018, representing a year-on-year decrease of 1.5 percentage points.

In July 2018, the Group introduced four aircraft, including one B737MAX, one B737-800 and two A320NEO aircraft, and retired one B737-800 and two B737-700 aircraft. As at the end of July 2018, the Group operated a fleet of 663 aircraft, including 283 self-owned aircraft, 179 aircraft under finance lease and 201 aircraft under operating lease.

The following table sets forth key operating data for July 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

 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, 14 August, 2018