ANNOUNCEMENT ON KEY OPERATING DATA - NOVEMBER 2016

RNS Number : 8011R

Air China Ld

14 December 2016

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 NOVEMBER 2016

The enclosed announcement (the "SSE Announcement") was published by Air China Limited ("Air China") on the Shanghai Stock Exchange on 13 December 2016, which contains combined operating data for November 2016 for Air China and its subsidiaries (collectively, the "Group").

The information contained in the SSE Announcement may be price sensitive. This announcement enclosing the SSE Announcement is being issued pursuant to Part XIVA of the Securities and Futures Ordinance. The data in the 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 is issued by Air China pursuant to Part XIVA of the Securities and Futures Ordinance.

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.

By Order of the Board

Air China Limited

Rao Xinyu Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 13 December 2016

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 NOVEMBER 2016

In November 2016, Air China Limited (the "Company"), and its subsidiaries (the "Group") recorded an increase in combined passenger traffic (measured by revenue passenger kilometers ("RPK")) as compared to the same period last year, but a slight decline as compared to last month. Compared to the same period last year, passenger capacity (measured by available seat kilometers ("ASK")) increased by 6.0%, and passenger traffic increased by 8.2%. For domestic routes, passenger capacity and passenger traffic increased by 10.5% and 11.4%, respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased 0.6% and 4.4%, respectively, as compared to the same period last year. Passenger capacity on regional routes decreased by 10.2%, and passenger traffic saw a decline of 8.4%, as compared to the same period last year. The overall passenger load factor was 79.7%, an increase of 1.6 percentage points compared to the same period last year. The passenger load factor for domestic, international and regional grew by 0.7 percentage point, 2.7 percentage points and 1.4 percentage points, respectively.

The Company launched a Tianjin-Urumqi-Gulja route (four times a week) on 1 November 2016, a Chongqing-Huai'an-Changchun route (three times a week) on 2 November 2016, and a Chengdu-Sydney route (three times a week) on 11 November 2016.

In terms of cargo operations, in November 2016, both cargo and mail traffic (measured by Revenue Freight Tonne Kilometres ("RFTK")) and freight tonnage carried displayed growth on a year-on-year basis and a monthly basis. Cargo capacity (measured by available freight tonne kilometers ("AFTK")) rose by 8.5% year-on-year. Cargo and mail traffic increased by 11.8% and volume of cargo and mail grew by 10.9% as compared to the same period last year. The cargo load factor was 58.3%, representing a year-on-year increase of 1.7 percentage points.

In November 2016, the Group added eight aircraft in total, including two B777-300ER, three B737-800, one A330 and two A320, and retired one B737-800 and one business jet. As at the end of November 2016, the Group operated a fleet of 622 aircraft.

The following table sets forth key operating data for November 2016:

	November 2016	Change vs November 2015 (%)	Change vs October 2016 (%)	Cumulative November 2016	Cumulative change (%)
I. Capacity
1. ATKs (in millions)1	2789.0	6.9	-4.2	30881.7	7.8
Domestic	1370.3	12.4	-3.5	14761.7	5.7
International	1327.7	3.1	-5.1	15058.4	11.2
Regional	91.0	-10.6	-2.0	1061.7	-6.1
2. ASKs (in millions)2	18795.6	6.0	-6.8	213304.1	8.7
Domestic	11554.3	10.5	-4.7	127816.4	5.1
International	6516.8	0.6	-10.7	76908.0	17.1
Regional	724.5	-10.2	-3.7	8579.8	-4.1
3. AFTKs (in millions)3	1093.1	8.5	0.1	11639.2	6.4
Domestic	331.2	19.3	0.3	3271.3	8.0
International	739.2	5.1	-0.1	8113.3	6.5
Regional	22.7	-13.0	2.6	254.7	-12.8
II. Traffic
1. RTKs (in millions)4	1979.7	9.3	-4.5	21639.8	8.5
Domestic	1006.7	11.5	-5.9	10883.4	6.3
International	914.4	8.0	-3.2	10069.2	11.5
Regional	58.6	-7.2	-1.3	687.2	0.1
2. RPKs (in millions)5	14976.5	8.2	-8.8	172448.0	9.5
Domestic	9509.9	11.4	-8.2	106121.0	6.1
International	4936.7	4.4	-10.6	59933.4	17.2
Regional	529.9	-8.4	-3.1	6393.6	0.9
3. RFTKs (in millions)6	637.2	11.8	4.6	6339.3	6.2
Domestic	156.0	12.6	5.0	1489.5	7.8
International	471.8	11.8	4.5	4753.1	6.0
Regional	9.3	-2.7	6.2	96.7	-6.3
4. Number of Passengers carried (in thousands)	7736.7	8.7	-9.2	88684.7	7.3
Domestic	6440.0	10.9	-9.2	72421.7	5.6
International	962.8	2.0	-11.2	12173.6	21.2
Regional	333.9	-8.3	-4.1	4089.3	1.2

	November 2016	Change vs November 2015 (%)	Change vs October 2016 (%)	Cumulative November 2016	Cumulative change (%)
5. Total Cargo tonnes carried	164946.0	10.9	5.9	1599456.6	5.8
Domestic	100040.8	10.8	6.1	952089.1	6.4
International	58104.1	12.0	5.2	579734.7	5.7
Regional	6801.2	3.7	7.4	67632.7	-2.0
III. Load Factor
1. Passenger Load Factor (%)7	79.7	1.6	-1.7	80.8	0.6
Domestic	82.3	0.7	-3.1	83.0	0.8
International	75.8	2.7	0.1	77.9	0.1
Regional	73.1	1.4	0.4	74.5	3.7
2. Cargo Load Factor (%)8	58.3	1.7	2.5	54.5	-0.1
Domestic	47.1	-2.8	2.1	45.5	-0.1
International	63.8	3.8	2.8	58.6	-0.3
Regional	40.9	4.3	1.4	38.0	2.6
3. Overall Load Factor (%)9	71.0	1.5	-0.3	70.1	0.4
Domestic	73.5	-0.6	-1.9	73.7	0.5
International	68.9	3.2	1.3	66.9	0.2
Regional	64.4	2.4	0.5	64.7	4.0

Note:

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 seat kilometers

9. "Overall Load Factor" refers to RTKs 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