China Southern Airlines Company Limited provided earnings guidance for the first quarter ended March 31, 2015. For the quarter, the company preliminarily estimates the results for the first quarter of 2015 in accordance with the China Accounting Standards for Business Enterprises and expects to turn losses into profits for the first quarter of 2015 as compared with the corresponding period in the previous year and the net profit attributable to equity holders of the company is expected to be RMB 1.8 billion to RMB 2 billion. The reasons for estimated profit in the results: During the first quarter of 2015, the demand of civil aviation transportation market showed a strong trend as influenced by various factors such as China's "One Belt and One Road" strategy, and the preliminary results of strategic transformation of the company were achieved with the operating revenue of the company recorded a substantial increase as compared with the corresponding period in the previous year.

The fluctuation of the international crude oil price at a lower level has substantially decreased company's cost of jet fuel price. The company has continued to push forward the comprehensive budget management for the recent three years with the increase of the cost control capability, and the cost decreased as compared with the corresponding period in the previous year.