ANNOUNCEMENT ON KEY OPERATING DATA OF DEC 2019

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 2019

In December 2019, 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 and 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 4.6% and 5.0% respectively. For domestic routes, passenger capacity and passenger traffic increased by 5.7% and 6.6% respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased by 4.2% and 5.0% respectively, as compared to the same period last year. Passenger capacity on regional routes decreased by 8.6%, and passenger traffic recorded a decrease of 17.3%, as compared to the same period last year. The overall passenger load factor was 78.9%, representing an increase of 0.3 percentage points as compared to the same period last year. The passenger load factor for domestic routes increased by 0.6 percentage points and for international routes increased by 0.6 percentage points as compared to the  same period last year, and the passenger load factor for regional routes decreased by 7.8 percentage points year-on-year.

In terms of cargo operations, cargo capacity (measured by available freight tonne kilometers (the "AFTK")) increased by 2.6% year-on-year. Cargo and mail traffic decreased by 5.1%, the volume of cargo and mail carried decreased by 0.9% as compared to the same period last year. The cargo load factor was 42.6%, representing a year-on-year decrease of 3.4 percentage points.

The Company launched a Chongqing-Okinawa-Chongqing route (three shifts per week) on 27 December 2019.

In December 2019, the Group introduced four A321 series aircraft, seven A320 series aircraft, two B737-800 series aircraft and retired one B737-800 aircraft. As at the end of December 2019, the Group operated a fleet of 698 aircraft, including 286 self-owned aircraft, 207 aircraft under finance lease and 205 aircraft under operating lease.