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 2022

In December 2022, Air China Limited (the "Company") and its subsidiaries (the "Group") recorded a year-on-year decrease and a month-on-month increase in combined passenger traffic (measured by revenue passenger kilometers (the "RPK")). Passenger capacity (measured by available seat kilometers (the "ASK")) recorded a year-on-year decrease of 22.1% and a month-on-month increase of 38.1%. Passenger traffic recorded a year-on-year decrease of 24.1% and a month-on-month increase of 37.6%. Among which, for domestic routes, passenger capacity decreased by 27.7% year on year and increased by 40.4% month on month, and passenger traffic decreased by 28.4% year on year and increased by 38.2% month on month. For international routes, passenger capacity increased by 143.7% and increased by 17.5% as compared to the same period last year and the previous month, respectively, and passenger traffic increased by 166.7% and increased by 30.9% as compared to the same period last year and the previous month, respectively. For regional routes, passenger capacity increased by 2.0% and increased by 45.5% as compared to the same period last year and the previous month, respectively, and passenger traffic recorded an increase of 1.6% year on year and an increase of 37.5% month on month. The overall passenger load factor was 61.9%, representing an decrease of 1.6 percentage points as compared to the same period last year and a decrease of 0.2 percentage points as compared to the previous month. Among which, the passenger load factor for domestic routes decreased by 0.6 percentage points year on year and decreased by 1.0 percentage points month on month, the passenger load factor for international routes increased by 4.1 percentage points and increased by 4.9 percentage points as compared to the same period last year and the previous month, respectively, and the passenger load factor for regional routes decreased by 0.2 percentage points year on year and decreased by 2.7 percentage points month on month.

In terms of cargo operations, cargo capacity (measured by available freight tonne kilometers (the "AFTK")) decreased by 62.2% year on year and decreased by 2.9% month on month. Cargo and mail traffic (measured by revenue freight tonne kilometers (the "RFTK")) decreased by 63.0% year on year and decreased by 16.2% month on month. The cargo load factor was 38.1%, representing a year- on-year decrease of 0.8 percentage points and a month-on-month decrease of 6.0 percentage points.

In December 2022, the Group introduced three A350 aircraft, three ARJ21-700 aircraft, retired one B737-800 aircraft. As at the end of December 2022, the Group operated a fleet of 762 aircraft, including 312 self-owned aircraft, 247 aircraft under finance lease and 203 aircraft under operating lease.