Air China Limited Announces 2008 First Quarter Results

• Operating revenue grew 21.8% y-o-y to RMB12.76 billion from RMB10.47 billion
• Operating profit rose 114% y-o-y to RMB1.10 billion from RMB0.51 billion
• Net profit attributable to shareholders grew 147% y-o-y to RMB1.04 billion from RMB0.42 billion
• Basic earnings per share grew 147% to RMB0.09 from RMB0.04

Hong Kong — April 25, 2008 — Air China Limited (“the Company”, HKEX: 753; LSE: AIRC; SSE: 601111; ADR OTC: AIRYY) today announced its first quarter results for the three months ended March 31, 2008(the "Period").

(Important notice: All figures in this report are unaudited and are prepared in accordance with the PRC GAAP. The operating figures include those of Air Macau.)

In the first quarter of 2008, the Company’s operating revenue increased 21.8% y-o-y to RMB12.76 billion.  Operating profit rose 114% y-o-y to RMB1.10 billion.  Net Profit saw a y-o-y increase of 147% to RMB1.04 billion.  Earnings per share and return on net asset were RMB0.09 and 3.27% respectively.

The growth in earnings was primarily attributed to the Company’s effective control of rising jet fuel costs and the ability to weather strong competition from domestic and international carriers.  The Company’s solid profitability further cemented its leading position among Chinese carriers and further established its brand recognition.

Operational and Business Highlights

The Company sustained a strong level of profitability during the traditional low season in the first quarter.  Against the backdrop of a blooming domestic market, the Company experienced steady improvement in operation performance. 

During the period, the total number of passengers carried by the Company increased 4.92% to 8.82 million.  Passenger load factor improved to 76.73%, representing a 2.08 percentage point increase.  Cargo and mail carried decreased 3.31% y-o-y to 248 thousand tonnes in the first three months of 2008. Cargo load factor was 56.82%, a y-o-y increase of 5.15 percentage points. The steady improvement in passenger load factor provided a solid foundation for the Company’s earnings growth. 

Passenger Services

Revenue passenger kilometer (“RPK”) was 17.14 billion, an increase of 8.66% over the same period of 2007. International RPK was 7.36 billion, up 11.57% y-o-y.  Domestic RPK recorded a 6.68% y-o-y growth to 9.04 billion.  Regional (Hong Kong and Macao) RPK was 0.74 billion, representing an increase of 5.45%.

For the first three months, the load factor of international, domestic and regional routes were 74.86%, 78.93% and 70.22% respectively, representing y-o-y growth of 2.15, 2.1 and 1.93 percentage points.  Total capacity measured by available seat kilometers (ASK) saw a y-o-y increase of 5.72% to 22.34 billion.

Cargo Services

Revenue freight tonne kilometers (“RFTK”) increased 0.69% to 0.883 billion. Cargo capacity, measured by available freight tonne kilometers (“AFTK”), decreased 8.44% from the same period of 2007 to 1.55billion. Cargo load factor was 56.82%, a y-o-y increase of 5.15 percentage points. 

About Air China Limited

Air China Limited (Air China) is the national flag carrier of China and a leading provider of air passenger, air cargo and airline-related services in China. Its operational head office is in Beijing. The Company’s extensive route network serves major Chinese cities and numerous international destinations, with dominant market share measured by total traffic volume for the Beijing Capital International Airport. It also provides airline-related services, including aircraft maintenance, ground services and in-flight catering services in Beijing, Chengdu, Hong Kong and other locations through its own business units and joint ventures. As of December 31, 2007, the Group operated a fleet of 220 aircraft，serving 121 destinations  in 27 countries. Air China was listed on the Hong Kong Stock Exchange and the London Stock Exchange on December 15, 2004 under codes 0753 and AIRC respectively. On August 18, 2006, Air China was listed on the Shanghai Stock Exchange under code 601111. On August 4, 2004, Air China was designated as the sole official passenger airline partner of the Beijing Olympic Games. For further details, please visit Air China’s website: www.airchina.com.cn.

Safe Harbor 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.

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