ANNOUNCEMENT ON KEY OPERATING DATA OF MAY 2016

RNS Number : 4912B

Air China Ld

17 June 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 MAY 2016

The enclosed announcement (the "SSE Announcement") was published by Air China Limited ("Air China") on the Shanghai Stock Exchange on 16 June 2016, which contains combined operating data for May 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, 16 June 2016

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 MAY 2016

In May 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 8.7%, while passenger traffic, increased by 7.6%. For domestic routes, passenger capacity and passenger traffic increased by 6.4% and 7.1%, respectively, as compared to the same period last year. For international routes, passenger capacity and passenger traffic increased by 14.4% and 9.9%, respectively, as compared to the same period last year. Passenger capacity and passenger traffic on regional routes decreased by 3.0% and 1.7%, respectively, as compared to the same period last year. The overall passenger load factor was 77.9%, a decline of 0.8 percentage point compared to the same period last year. The passenger load factor for domestic and regional grew by 0.5, 0.9 percentage point respectively, while the passenger load factor of international routes saw a decrease of 3.0 percentage points.

The Company launched a Tianjin - Weihai route (five times a week) on 3 May 2016, a Beijing - Xichang route (four times a week) on 17 May 2016, a Shenzhen - Frankfurt route (three times a week) on 20 May 2016, and a Beijing - Hami route (four times a week) on 23 May 2016.

In terms of cargo operations, in May 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 7.8% year-on-year. Cargo and mail traffic increased by 3.9% and volume of cargo and mail uplifted grew by 4.0% as compared to the same period last year. The cargo load factor was 54.8% in May 2016, representing a year-on-year decrease of 2.0 percentage points.

In May 2016, the Group added one B787, two B737-800 and one business jet, and retired one A320. As at the end of May 2016, the Group operated a fleet of 596 aircraft.

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

	May 2016	Change vs May 2015	Change vs April 2016 (%)	Cumulative May 2016	Cumulative change (%)
I. Capacity
1. ATKs (in millions)1	2812.9	8.3	1.1	13853.7	10.1
Domestic	1348.1	9.0	-0.3	6671.7	4.7
International	1366.7	8.7	2.5	6669.9	17.2
Regional	98.2	-3.9	1.6	512.2	-1.3
2. ASKs (in millions)2	19241.6	8.7	2.0	94636.8	10.6
Domestic	11633.9	6.4	0.6	57143.3	4.9
International	6815.6	14.4	4.7	33402.6	23.6
Regional	792.1	-3.0	1.7	4090.9	0.7
3. AFTKs (in millions)3	1077.1	7.8	-0.2	5313.6	9.2
Domestic	302.3	18.7	-3.0	1532.6	4.0
International	751.1	4.4	0.9	3653.2	12.3
Regional	23.7	-7.6	1.3	127.7	-7.5
II. Traffic
1. RTKs (in millions)4	1931.4	6.4	-0.3	9415.2	8.5
Domestic	980.5	7.0	-0.6	4782.2	4.6
International	889.2	6.4	0.5	4309.3	13.4
Regional	61.7	-1.9	-4.1	323.7	5.8
2. RPKs (in millions)5	14988.3	7.6	-1.0	75244.6	10.1
Domestic	9466.3	7.1	-1.0	46787.4	4.6
International	4961.2	9.9	-0.6	25429.3	22.3
Regional	560.8	-1.7	-5.3	3027.8	7.3
3. RFTKs (in millions)6	590.0	3.9	1.2	2728.5	4.7
Domestic	135.0	6.3	0.9	635.7	4.3
International	445.3	3.3	1.3	2048.4	5.1
Regional	9.6	-3.8	1.5	44.5	-4.8
4. Number of Passengers carried (in thousands)	7925.1	7.0	-1.3	39011.9	6.8
Domestic	6527.5	6.7	-0.8	31808.8	4.5
International	1032.7	12.3	-3.2	5268.9	22.8
Regional	364.9	-0.9	-4.9	1934.1	7.9
5. Total Cargo tonnes carried	146267.8	4.0	0.6	688010.5	3.9
Domestic	86187.1	5.7	1.1	407709.5	3.3
International	53387.4	1.9	-0.5	249800.6	5.5

	May 2016	Change vs May 2015	Change vs April 2016 (%)	Cumulative May 2016	Cumulative change (%)
Regional	6693.3	-0.5	4.2	30500.4	-1.9
III. Load Factor
1. Passenger Load Factor (%)7	77.9	-0.8	-2.4	79.5	-0.4
Domestic	81.4	0.5	-1.3	81.9	-0.3
International	72.8	-3.0	-3.9	76.1	-0.8
Regional	70.8	0.9	-5.3	74.0	4.6
2. Cargo Load Factor (%)8	54.8	-2.0	0.8	51.4	-2.2
Domestic	44.6	-5.2	1.7	41.5	0.1
International	59.3	-0.6	0.3	56.1	-3.9
Regional	40.7	1.6	0.1	34.8	1.0
3. Overall Load Factor (%)9	68.7	-1.2	-1.0	68.0	-1.0
Domestic	72.7	-1.3	-0.3	71.7	-0.1
International	65.1	-1.4	-1.4	64.6	-2.2
Regional	62.8	1.3	-3.7	63.2	4.2

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