ANNOUNCEMENT ON KEY OPERATING DATA OF JUNE 2016

RNS Number : 2918E

Air China Ld

15 July 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 JUNE 2016

The enclosed announcement (the "SSE Announcement") was published by Air China Limited ("Air China") on the Shanghai Stock Exchange on 14 July 2016, which contains combined operating data for June 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.

Beijing, the PRC, 14 July 2016

By Order of the Board

Air China Limited

Rao Xinyu Tam Shuit Mui

Joint Company Secretaries

As at the date of this notice, 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 Honchung* 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 JUNE 2016

In June 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 8.1%, while passenger traffic, increased by 10.3%. For domestic routes, passenger capacity and passenger traffic increased by 5.6% and 8.9%, respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased by 14.0% and 13.6%, respectively, as compared to the same period last year. Passenger capacity on regional routes decreased by 3.5%, while passenger traffic saw a growth of 4.6%, as compared to the same period last year. The overall passenger load factor was 81.4%, an increase of 1.7 percentage point compared to the same period last year. The passenger load factor for domestic and regional grew by 2.5, 5.8 percentage points respectively, while the passenger load factor of international routes saw a decrease of 0.3 percentage point.

On 15 June 2016, the Company launched a Hohhot - Chifeng route (three times a week), a Hohhot - Hefei route (seven times a week) and a Hohhot - Xilinhot route (seven times a week).

In terms of cargo operations, in June 2016, both 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 3.0% year-on-year. Cargo and mail traffic increased by 6.3% and volume of cargo and mail uplifted grew by 7.8% as compared to the same period last year. The cargo load factor was 61.1% in June 2016, representing a year-on-year increase of 1.9 percentage points.

In June 2016, the Group added two B787, four B737-800, one B737-700 and one A321, and retired two B737-800. As at the end of June 2016, the Group operated a fleet of 602 aircraft.

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

	June 2016	Change vs June 2015 (%)	Change vs May 2016 (%)	Cumulative June 2016	Cumulative change (%)
I. Capacity
1. ATKs (in millions)1	2666.3	6.2	-5.2	16520.0	9.5
Domestic	1247.9	6.5	-7.4	7919.6	5.0
International	1326.2	6.8	-3.0	7996.1	15.3
Regional	92.2	-5.8	-6.1	604.3	-2.0
2. ASKs (in millions)2	18750.2	8.1	-2.6	113387.0	10.2
Domestic	11184.7	5.6	-3.9	68328.0	5.1
International	6805.6	14.0	-0.1	40208.2	21.9
Regional	759.9	-3.5	-4.1	4850.8	0.0
3. AFTKs (in millions)3	975.3	3.0	-9.5	6288.8	8.2
Domestic	243.0	10.4	-19.6	1775.6	4.9
International	711.6	1.2	-5.3	4364.7	10.3
Regional	20.8	-13.7	-12.4	148.5	-8.4
II. Traffic
1. RTKs (in millions)4	1955.3	8.9	1.2	11370.6	8.6
Domestic	961.7	8.9	-1.9	5743.9	5.3
International	931.6	9.3	4.8	5240.9	12.6
Regional	62.0	4.4	0.5	385.7	5.6
2. RPKs (in millions)5	15264.2	10.3	1.8	90508.8	10.1
Domestic	9321.5	8.9	-1.5	56108.9	5.3
International	5377.8	13.6	8.4	30807.1	20.7
Regional	565.0	4.6	0.7	3592.8	6.9
3. RFTKs (in millions)6	596.0	6.3	1.0	3324.6	5.0
Domestic	132.6	10.4	-1.7	768.3	5.3
International	453.6	5.3	1.8	2502.0	5.1
Regional	9.7	3.0	0.8	54.3	-3.5
4. Number of Passengers carried (in thousands)	7844.9	9.7	-1.0	46856.7	7.3
Domestic	6381.1	7.6	-2.2	38189.9	5.0
International	1099.7	26.1	6.5	6368.5	23.4
Regional	364.2	4.8	-0.2	2298.3	7.4
5. Total Cargo tonnes carried	146650.1	7.8	0.2	834700.4	4.6
Domestic	85147.9	9.5	-1.2	492857.4	4.3
International	54950.2	5.5	2.9	304776.0	5.5
Regional	6552.0	7.0	-2.3	37067.0	-0.4

	June 2016	Change vs June 2015 (%)	Change vs May 2016 (%)	Cumulative June 2016	Cumulative change (%)
III. Load Factor
1. Passenger Load Factor (%)7	81.4	1.7	3.5	79.8	-0.0
Domestic	83.3	2.5	2.0	82.1	0.2
International	79.0	-0.3	6.2	76.6	-0.8
Regional	74.3	5.8	3.6	74.1	4.8
2. Cargo Load Factor (%)8	61.1	1.9	6.3	52.9	-1.6
Domestic	54.6	0.0	9.9	43.3	0.2
International	63.7	2.4	4.4	57.3	-2.9
Regional	46.9	7.6	6.1	36.5	1.8
3. Overall Load Factor (%)9	73.3	1.9	4.7	68.8	-0.6
Domestic	77.1	1.7	4.3	72.5	0.2
International	70.2	1.6	5.2	65.5	-1.6
Regional	67.3	6.5	4.4	63.8	4.6

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