ANNOUNCEMENT ON KEY OPERATING DATA OF AUGUST 2017

RNS Number : 8322Q

Air China Ld

15 September 2017

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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 AUGUST 2017

This announcement enclosing the SSE Announcement is made by Air China pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

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

Zhou Feng Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 14 September 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. Wang Xiaokang*, Mr. Liu Deheng*, 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 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 AUGUST 2017

In August 2017, Air China Limited (the "Company") and its subsidiaries (collectively, the "Group") continued to record an increase in combined passenger traffic (measured by revenue passenger kilometres (the "RPK")) as compared to the same period last year and the same period last month. Passenger capacity (measured by available seat kilometres (the "ASK")) and passenger traffic recorded a year- on-year increase of 4.5% and 2.4% respectively. For domestic routes, passenger capacity and passenger traffic increased by 6.0% and 4.5%, respectively, as compared to the same period last year. For international routes, passenger capacity increased by 2.3%, and passenger traffic dropped by 1.5% as compared to the same period last year. Passenger capacity on regional routes increased by 1.3%, and passenger traffic recorded an increase of 10.2%, as compared to the same period last year. The overall passenger load factor was 82.9%, representing a decline of 1.7 percentage points as compared to the same period last year. The passenger load factor for domestic and international routes dropped by 1.2 and 3.2 percentage points respectively while the passenger load factor for regional routes saw an increase of 6.9 percentage points.

In terms of cargo operations, in August 2017, cargo and mail traffic (measured by revenue freight tonne kilometres (the "RFTK")) and freight tonnage carried maintained growth on a year-on-year basis. On a month-on-month basis, cargo and mail traffic recorded a slight decrease. Cargo capacity (measured by available freight tonne kilometres (the "AFTK")) increased by 0.5% year-on-year. Cargo and mail traffic increased by 7.8% and the volume of cargo and mail carried rose by 4.6% as compared to the same period last year. The cargo load factor was 58.7% in August 2017, representing a year-on-year growth of 4.0 percentage points.

In August 2017, the Group introduced six aircraft in total, including one B787-9, one B777-300ER, two B737-800s, one A321, one A330 and retired five aircraft including four B737-800s and one A321. As at the end of August 2017, the Group operated a fleet of 637 aircraft, including 250 self-owned aircraft, 182 aircraft under finance lease and 205 aircraft under operating lease.

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

	August 2017	Year- on-Year Change (%)	Month- on-Month Change (%)	Cumulative 2017	Year- on-Year Cumulative Change (%)
I. Capacity
1. ATK (in million)1	3,052.7	3.0	2.6	23,170.4	3.6
Domestic	1,463.4	7.2	5.0	11,365.0	6.9
International	1,493.8	-0.8	0.5	11,054.8	1.0
Regional	95.5	2.6	-0.1	750.6	-5.0
2. ASK (in million)2	21,767.1	4.5	2.2	162,047.0	4.7
Domestic	12,858.6	6.0	4.2	96,919.0	4.7
International	8,132.1	2.3	-0.3	59,075.1	5.8
Regional	776.4	1.3	-1.1	6,052.9	-5.2
3. AFTK (in million)3	1,090.5	0.5	3.2	8,555.0	1.8
Domestic	308.0	11.4	8.1	2,650.9	14.8
International	760.0	-3.5	1.4	5,722.8	-3.1
Regional	22.5	7.6	3.3	181.3	-4.2
II. Traffic
1. RTK (in million)4	2,211.6	3.7	1.7	16,477.5	5.8
Domestic	1,068.4	3.6	4.2	8,170.5	5.0
International	1,072.3	3.4	-0.7	7,804.4	7.0
Regional	70.9	11.5	2.4	502.6	-2.0
2. RPK (in million)5	18,050.1	2.4	3.5	131,902.7	5.4
Domestic	10,800.0	4.5	4.8	80,756.1	5.6
International	6,584.2	-1.5	1.6	46,478.0	6.0
Regional	665.8	10.2	2.7	4,668.5	-2.6
3. RFTK (in million)6	640.6	7.8	-1.5	4,821.7	6.8
Domestic	132.6	-0.7	5.2	1,050.5	2.0
International	498.2	10.1	-3.2	3,698.6	8.3
Regional	9.8	22.1	2.4	72.6	2.9

	August 2017	Year- on-Year Change (%)	Month- on-Month Change (%)	Cumulative 2017	Year- on-Year Cumulative Change (%)
4. Number of Passengers carried (in thousand)	9,042.8	2.2	4.7	66,882.2	4.1
Domestic	7,373.0	3.7	4.9	55,009.5	5.4
International	1,239.6	-7.8	4.1	8,896.2	-1.2
Regional	430.2	10.2	3.5	2,976.5	-3.2
5. Total Cargo and Mail carried (in tonnes)	151,596.4	4.6	1.0	1,175,449.0	4.7
Domestic	83,679.6	-1.3	5.1	665,447.9	1.0
International	60,840.5	11.9	-4.3	457,701.5	10.3
Regional	7,076.3	20.8	2.1	52,299.6	7.2
III. Load Factor
1. Passenger Load Factor (%)7	82.9	-1.7	1.0	81.4	0.6
Domestic	84.0	-1.2	0.5	83.3	0.7
International	81.0	-3.2	1.6	78.7	0.2
Regional	85.8	6.9	3.1	77.1	2.1
2. Cargo and Mail Load Factor (%)8	58.7	4.0	-2.8	56.4	2.6
Domestic	43.1	-5.3	-1.2	39.6	-4.9
International	65.6	8.1	-3.1	64.6	6.8
Regional	43.8	5.2	-0.4	40.0	2.8
3. Overall Load Factor (%)9	72.4	0.5	-0.6	71.1	1.4
Domestic	73.0	-2.5	-0.5	71.9	-1.3
International	71.8	2.9	-0.9	70.6	4.0
Regional	74.3	5.9	1.8	67.0	2.1

Notes:

1. "ATK(s)" refers to the number of tonnes of capacity available for transportation multiplied by the kilometres flown

2. "ASK(s)" refers to the number of seats available for sale multiplied by the kilometres flown

3. "AFTK(s)" refers to the number of tonnes of capacity available for the carriage of cargo and mail multiplied by the kilometres flown

4. "RTK(s)" refers to the revenue load (passenger and cargo) in tonnes multiplied by the kilometres flown

5. "RPK(s)" refers to the number of revenue passengers carried multiplied by the kilometres flown

6. "RFTK(s)" refers to the revenue cargo and mail load in tonnes multiplied by the kilometres flown

7. "Passenger Load Factor" refers to revenue passenger kilometres expressed as a percentage of available seat kilometres

8. "Cargo and Mail Load Factor" refers to revenue freight tonne kilometres expressed as a percentage of available freight tonne kilometres

9. "Overall Load Factor" refers to RTKs expressed as a percentage of available tonne kilometres

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 result from inappropriate reliance upon or utilization of the information given above.

By Order of the Board