Air China : Announces 2021 Q1 Results

For Immediate Release

29 April 2021

Air China Announces 2021 Q1 Results

Forging ahead to overcome difficulties and proactively responding to

operation challenges

(29 April 2021, Hong Kong) Air China Limited ("Air China" or the "Company", with its subsidiaries, the "Group") (Stock Code: Hong Kong: 00753; London: AIRC; Shanghai: 601111; America: ADR OTC: AIRYY) is pleased to announce the financial results for the first quarter of 2021 (the "Period").

Financial Highlights

• Operating revenue totaled RMB14,581 million
• Operating cost recorded RMB19,241 million
• Net loss attributable to shareholders stood at RMB6,208 million

Operations and Business Highlights

In the first quarter of 2021, the demand for air travel was restrained due to the impact of COVID-19 epidemic. During the period, the Group recorded an operating revenue of RMB14,581 million and a net loss attributable to shareholders of RMB6,208 million. Facing the adverse impact of the COVID-19 epidemic, the Group adhered to the principle of "optimizing operation of the all fleets" to strengthen market research, closely follow up the evolving demand, seize the opportunity for market recovery, and timely optimize its input in transportation capacity. The Group insisted on placing equal emphasis on both passenger and cargo, increased efforts in cost reduction and efficiency enhancement, carefully managed and controlled major costs throughout the whole process, and actively strived for better performance through various measures.

During the period, the Group's passenger capacity, measured by Available Seat Kilometers (ASK) , dropped by 12.43% year-on-year to 35.613 billion. Overall passenger traffic, measured by Revenue Passenger Kilometers (RPK), dropped by 14.71% year-on-year to 23.534 billion. In particular, traffic on domestic routes totaled 22.99 billion, representing a year-on-year increase of 33.58%; traffic on international routes recorded 430 million, representing a year-on-year decrease of 95.6%; and traffic on regional routes was 214 million, representing a year-on-year decrease of 68.18%. Passenger load factor was 66.08%, representing a year-on-year decrease of 1.77 percentage points.·

Outlook

The long-term positive momentum of the industry will remain unchanged. As the epidemic within China is under control and the scope of vaccination continues to expand, the demand for civil aviation travel is expected to recover continuously. The Group will seize the opportunities arising from market recovery, timely optimize its contribution to transportation capacity, and actively strive for better performance through various measures, so as to achieve sustainable development.

-End-

About Air China Limited

Air China Limited is the national flag carrier of China and a leading provider of passenger, air cargo and airline-related services and products in China. Air China was listed on Hong Kong Stock Exchange and London Stock Exchange on 15 December, 2004 under codes 00753 and AIRC respectively. On 30 June, 2006, Level I Sponsored ADR Program of Air China had been set up under the code of AIRYY. On August 18, 2006, Air China was listed on Shanghai Stock Exchange under code 601111. For further details, please visit Air China's website: www.airchina.com.cn.

Forward-Looking Statement

This press release contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those projected.

Investor relations and media inquiry:

Air China Limited

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Wonderful Sky Financial Group Company Ltd.

Peri Yang / Ken Yu

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