Air China Regulatory News (AIRC)

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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 MARCH 2017

The enclosed announcement (the "SSE Announcement") was published by Air China Limited (the "Air China") on the Shanghai Stock Exchange on 13 April 2017, which contains combined operating data for March 2017 for Air China and its subsidiaries (collectively, the "Group").

This announcement enclosing the SSE Announcement is made by Air China pursuant to Rule 13.09 and Rule 13.10B of the Listing Rules and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the SFO. 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.

This announcement enclosing the SSE Announcement is made by Air China pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

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 advised to exercise caution in dealing in shares of Air China.

Beijing, the PRC, 13 April 2017

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Cao Jianxiong, Mr. Feng Gang, Mr. John Robert Slosar, Mr. Ian Sai Cheung Shiu, Mr. Pan Xiaojiang*, Mr. Simon To Chi Keung*, 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 MARCH 2017

In March 2017, 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, and to last month, respectively. Compared to the same period last year, passenger capacity (measured by available seat kilometers (the "ASK")) increased by 5.4%, and passenger traffic increased by 8.7%. For domestic routes, passenger capacity and passenger traffic increased by 7.9% and 10.3%, respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased 2.3% and 7.6%, respectively, as compared to the same period last year. Passenger capacity on regional routes decreased by 6.0%, and passenger traffic saw a decline of 7.6%, as compared to the same period last year. The overall passenger load factor was 81.0%, representing an increase of 2.5 percentage points compared to the same period last year. The passenger load factor for domestic and international routes grew by 1.8 percentage points and

3.9 percentage points respectively while the passenger load factor for regional routes saw a decrease of 1.2 percentage points.

In terms of cargo operations, in March 2017, both the cargo and mail traffic (measured by revenue freight tonne kilometres (the "RFTK")) and freight tonnage carried displayed growth on a year-on-year basis and on a month-on-month basis, respectively. Cargo capacity (measured by available freight tonne kilometers (the "AFTK")) increased by 0.1% year-on-year. Cargo and mail traffic increased by 3.3% and the volume of cargo and mail carried rose by 3.2% as compared to the same period last year. The cargo load factor was 55.3% in March 2017, representing a year-on-year growth of 1.7 percentage points.

On 26 March 2017, the Company launched a Dalian-Yuncheng-Guiyang route (four times a week), a Dalian-Shiyan-Kunming route (four times a week), a Tianjin-Fuzhou route (six times a week), a Tianjin- Taiyuan-Xining route (seven times a week) and a Chongqing-Liupanshui route (seven times a week). On 27 March 2017, the Company launched a Chengdu-Shihezi-Yining route (three times a week) and a Hangzhou-Liupanshui route (four times a week). The Company launched a Dalian-Yunchen-Guilin route (three times a week) on 28 March 2017.

In March 2017, the Group introduced one A320 aircraft, and retired one B777-200 aircraft. As at the end of March 2017, the Group operated a fleet of 628 aircraft, including 259 self-owned aircraft, 172 aircraft under finance lease and 197 aircraft under operating lease.

The following table sets forth the key operating data for March 2017:

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 RTK 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.

By Order of the Board

Rao Xinyu

Board Secretary

Beijing, the PRC, 13 April 2017