ANNOUNCEMENT ON KEY OPERATING DATA OF JULY 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 JULY 2020

In July 2020, Air China Limited (the "Company") and its  subsidiaries  (collectively  with  the Company, the "Group") recorded decrease in combined passenger traffic (measured by revenue passenger kilometers (the "RPK")) as compared to the same period last year, and recorded increase as compared to the same period last month. Passenger capacity (measured by available seat kilometers (the "ASK")) recorded a year-on-year decrease of 52.5% and recorded an increase of 21.1% as compared to the same period last month. Passenger traffic recorded a year-on-year decrease of 58.0% and recorded an increase of 29.4% as compared to the same period last month. For domestic routes, passenger capacity increased by 22.0% and passenger traffic increased by 30.7%, as compared to the same period last month. For international routes, passenger capacity increased by 2.0% and passenger traffic decreased by 4.2%, as compared to the same period last month. Passenger capacity on regional routes decreased by 28.9%, and passenger traffic recorded an increase of 130.6%, as compared to the same period last month. The overall passenger load factor was 71.7%, representing an increase of 4.6 percentage points as compared to the same period last month. The passenger load factor for domestic routes increased by 4.8 percentage points and for international routes decreased by 3.8 percentage points as compared to the same period last month, and the passenger load factor for regional routes increased by 6.4 percentage points as compared to the same period last month.

In terms of cargo operations, cargo capacity (measured by available freight tonne kilometers (the "AFTK")) decreased by 7.2% year-on-year, and recorded a decrease  of  2.8%  as  compared  to  the same period last month. Cargo and mail traffic (measured by revenue freight tonne kilometers (the "RFTK")) decreased by 26.7% as compared to the same period last year, and increased by 0.7% as compared to the same period last month. The cargo  load  factor was 37.7%,  representing  a year-on- year decrease of 10.0 percentage points, and an increase of 1.3 percentage points as compared to the same period of last month.

The Company launched a Chongqing - Jinghong route (7 shifts  per  week)  and  a  Chongqing  -  Shantou route (7 shifts per week) on 1 July 2020. The Company launched Dalian - Linfen - Guiyang route (four shifts per week) on 10 July and also launched a Chongqing - Jiuzhai route (seven shifts per week) on 21 July 2020.

In July 2020, the Group introduced one A320NEO aircraft and retired two B737-800 aircraft. As at the end of July 2020, the Group operated a fleet of 699 aircraft, including 293 self-owned aircraft, 202 aircraft under finance lease and 204 aircraft under operating lease.