ANNOUNCEMENT ON KEY OPERATING DATA OF JANUARY 2020

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 JANUARY 2020

In January 2020, Air China Limited (the "Company"), and its subsidiaries (the "Group") recorded decreases 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")) recorded a year-on-year increase of  1.2% and passenger traffic recorded a year-on-year decrease of 2.9%. For domestic routes, passenger capacity increased by 1.7% and passenger traffic decreased by 2.4%, as compared to the same period last year. For international routes, passenger capacity increased by 1.3% and passenger traffic decreased by 1.9%, as compared to the same period last year. Passenger capacity on regional routes decreased     by 7.9%, and passenger traffic recorded a decrease of 20.7%, as compared to  the  same period last year. The overall passenger load factor was 76.6%, representing a decrease of 3.3 percentage points as compared to the same period last year. The passenger load factor for domestic routes decreased by 3.2 percentage points and for international routes decreased by 2.6 percentage points as compared to the same period last year, and the passenger load factor for regional routes decreased by 11.4 percentage points year-on-year.

In terms of cargo operations, cargo capacity (measured by available freight tonne kilometers (the "AFTK")) maintained the same year-on-year. Cargo and mail traffic decreased by 14.2%, and the volume of cargo and mail carried decreased by 15.5% as compared to the same period last year. The cargo load factor was 35.3%, representing a year-on-year decrease of 5.7 percentage points.

The Company launched a Hangzhou-Tokyo route (four shifts per week) on 10 January 2020, and a Hohhot-Nanchang route (seven shifts per week) on 15 January 2020.

In January 2020, the  Group introduced two  A320 series aircraft and  retired one  B737-800 aircraft. As at the end of January 2020, the Group operated a fleet of 700 aircraft, including 286 self-owned aircraft, 207 aircraft under finance lease and 207 aircraft under operating lease.