Hong Kong — October 28, 2014 — Air China Limited (“Air China” or “the Company,” together with its subsidiaries, collectively “the Group”) (HKEX: 753; LSE: AIRC; SSE: 601111: ADR OTC: AIRYY), has today announced its financial results1 for the third quarter of 2014 (“the Period”).

Operating and Business Highlights
During the third quarter of 2014, the economy of China remained stable. The demand of the domestic aviation market steadily increased. Benefitting from the rapid increase of outbound passengers, the international passenger market continued to expand. However, total profit and net profit during the Period declined due to the exchange loss arising from the depreciation of RMB. During the reporting period, operating profit after deducting foreign exchange losses increased by RMB410 million as compared to the corresponding period of the previous year, mainly owing to the combined effects of improved operating efficiency as well as lower fuel price as compared to the previous year. During the reporting period, the Group’s operating revenue rose 6.68% year-on-year to RMB29.794 billion. Operating cost was RMB23.018 billion, an increase of 8.30% year-on-year. Operating profit was RMB3.716 billion, a decline of 7.58% year-on-year. Net profit was RMB2.683 billion, a decrease of 8.82% as compared to the net profit of RMB2.942 billion recorded in the same period of 2013.

During the Period, passenger capacity, measured by Available Seat Kilometers (ASK), rose by 7.96% year-on-year to 50.619 billion. Passenger traffic measured by Revenue Passenger Kilometers (RPK) was 40.930 billion, up 5.61% from the same period of 2013. Passenger traffic or RPK on international, domestic and regional routes increased by 10.37%, 2.85% and 12.86% year-on-year to 13.344 billion, 25.754 billion and 1.831 billion respectively. The passenger load factor was 80.86%, a decrease of 1.79 percentage points year-on-year.

Cargo capacity as measured by Available Freight Tonne Kilometers (AFTK), strongly increased by 15.53% year-on-year during the Period to 2.535 billion. Cargo traffic as measured by Revenue Freight Tonne Kilometers (RFTK) rose by 12.08% to 1.468 billion. The cargo and mail load factor was 57.92%, a decrease of 1.78 percentage points year-on-year.

Outlook
Mr. Cai Jianjiang, Chairman of Air China said, “The aviation industry still faces many challenges and the operating environment remains difficult. The Group intends to adhere to the strategies while continuing to improve the customer experience and striving to generate greater synergies by working with our strategic partners so as to achieve sustainable growth.”