ANNOUNCEMENT ON KEY OPERATING DATA OF JANUARY 2017

RNS Number : 0248X

Air China Ld

16 February 2017

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 JANUARY 2017

The enclosed announcement (the "SSE Announcement") was published by Air China Limited ("Air China") on the Shanghai Stock Exchange on 15 February 2017, which contains combined operating data for January 2017 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, 15 February 2017

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 JANUARY 2017

In January 2017, Air China Limited (the "Company"), and its subsidiaries (the "Group") continued to record an increase in combined passenger traffic (measured by revenue passenger kilometers ("RPK")) as compared to the same period last year and to last month, respectively. Compared to the same period last year, passenger capacity (measured by available seat kilometers ("ASK")) increased by 7.8%, and passenger traffic increased by 10.9%. For domestic routes, passenger capacity and passenger traffic increased by 10.9% and 13.2%, respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased 4.4% and 8.6%, respectively, as compared to the same period last year. Passenger capacity on regional routes decreased by 5.1%, and passenger traffic saw a decline of 2.2%, as compared to the same period last year. The overall passenger load factor was 81.7%, an increase of 2.3 percentage points compared to the same period last year. The passenger load factor for domestic, international and regional grew by 1.7, 3.1, 2.3 percentage points, respectively.

In terms of cargo operations, in January 2017, the cargo and mail traffic (measured by revenue freight tonne kilometres ("RFTK")) recorded a slight increase and the freight tonnage carried displayed a slight decline as compared to the same period last year. As compared to the same period last month, both of the cargo and mail traffic and the freight tonnage carried recorded a fall. Cargo capacity (measured by available freight tonne kilometers ("AFTK")) rose by 6.2% year-on-year. Cargo and mail traffic increased by 0.3% and volume of cargo and mail dropped by 2.4% as compared to the same period last year. The cargo load factor was 49.8% in January 2017, representing a year-on-year decline of

2.9 percentage points.

In January 2017, the Group added one A321 and retired two B737-700. As at the end of January 2017, the Group operated a fleet of 624 aircrafts, including 261 self-owned aircrafts, 172 finance leased aircrafts and 191 operating leased aircrafts.

The following table sets forth key operating data for January 2017:

	January 2017	Change vs January 2016 (%)	Change vs December 2016 (%)	Cumulative January2017	Cumulative change (%)
I. Capacity
1. ATKs (in millions)1	2,973.0	7.2	2.8	2,972.8	7.2
Domestic	1,482.1	15.5	5.0	1,482.1	15.5
International	1,391.0	0.4	0.4	1,390.8	0.3
Regional	99.9	-4.8	4.7	99.9	-4.8
2. ASKs (in millions)2	20,556.7	7.8	4.1	20,556.7	7.8
Domestic	12,370.3	10.9	4.2	12,370.3	10.9
International	7,392.8	4.4	3.9	7,392.8	4.4
Regional	793.5	-5.1	4.5	793.5	-5.1
3. AFTKs (in millions)3	1,118.4	6.2	0.7	1,118.4	6.2
Domestic	369.5	32.0	7.6	369.5	32.0
International	723.6	-3.1	-2.6	723.6	-3.1
Regional	25.3	-4.3	5.9	25.3	-4.3
II. Traffic
1. RTKs (in millions)4	2,031.3	7.2	-1.2	2,031.3	7.2
Domestic	1,029.0	9.8	1.3	1,029.0	9.8
International	938.4	5.3	-3.7	938.4	5.3
Regional	63.9	-3.8	0.3	63.9	-3.8
2. RPKs (in millions)5	16,803.9	10.9	7.1	16,803.9	10.9
Domestic	10,186.2	13.2	6.0	10,186.2	13.2
International	6,012.7	8.6	9.2	6,012.7	8.6
Regional	605.0	-2.2	5.3	605.0	-2.2
3. RFTKs (in millions)6	556.6	0.3	-15.0	556.6	0.3
Domestic	138.6	-4.0	-13.3	138.6	-4.0
International	409.7	2.2	-15.5	409.7	2.2
Regional	8.3	-14.4	-19.1	8.3	-14.4
4. Number of Passengers carried (in thousands)	8,411.2	11.8	6.4	8,411.2	11.8
Domestic	6,838.5	13.2	5.7	6,838.5	13.2
International	1,191.7	8.2	10.8	1,191.7	8.2
Regional	381.0	-0.9	4.4	381.0	-0.9

	January 2017	Change vs January 2016 (%)	Change vs December 2016 (%)	Cumulative January2017	Cumulative change (%)
5. Total Cargo and Mail tonnes carried	145,413.2	-2.4	-14.1	145,413.2	-2.4
Domestic	89,029.4	-4.2	-12.6	89,029.4	-4.2
International	50,337.1	2.2	-16.2	50,337.1	2.2
Regional	6,046.6	-11.1	-19.1	6,046.6	-11.1
III. Load Factor
1. Passenger Load Factor (%)7	81.7	2.3	2.3	81.7	2.3
Domestic	82.3	1.7	1.4	82.3	1.7
International	81.3	3.1	3.9	81.3	3.1
Regional	76.2	2.3	0.6	76.2	2.3
2. Cargo and Mail Load Factor (%)8	49.8	-2.9	-9.2	49.8	-2.9
Domestic	37.5	-14.1	-9.0	37.5	-14.1
International	56.6	2.9	-8.6	56.6	2.9
Regional	33.0	-3.9	-10.1	33.0	-3.9
3. Overall Load Factor (%)9	68.3	0.0	-2.7	68.3	0.0
Domestic	69.4	-3.6	-2.6	69.4	-3.6
International	67.5	3.2	-2.9	67.5	3.2
Regional	63.9	0.7	-2.8	63.9	0.7

Notes:

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