Air China Limited Announces 2012 Third Quarter Results

Results Highlights

Hong Kong —October 31, 2012 — Air China Limited (“Air China” or “the Company,” together with its subsidiaries, collectively “the Group”) (HKEX: 00753; LSE: AIRC; SSE: 601111: ADR OTC: AIRYY), today announced its results[1]for the third quarter of 2012 (“the Period”).

Operating and Business Highlights

During the third quarter of 2012, the growth of the Chinese economy has slowed down. In the complicated and changeable international environment, combined with the consistently high prices of fuel oil, the aviation industry is facing the pressures of the weak market demand, increasing operating costs and more intense competition. During the Period, the Group's operating revenue was RMB 28.75 billion, an increase of 2.15% year-on-year. Operating profit decreased by 17.05% year-over-year to RMB 4.49 billion. Net profit reached RMB 3.17 billion, a drop of 16.46% compared with a net profit of RMB 3.80 billion in the same period of 2011.

During the Period, passenger capacity, measured by Available Seat Kilometer (“ASK”), rose by 8.0% year-over-year to 42.49 billion. Passenger traffic measured by Revenue Passenger Kilometers (“RPK”) was 35.07 billion, up 5.3% from the same period in 2011. Passenger traffic or RPK on international, domestic and regional routes increased by 7.0%, 4.5% and 5.5% year-on-year to 10.28 billion, 23.32 billion and 1.47 billion respectively. The passenger load factor was 82.53%, a decrease of 2.1 percentage points compared with the same period in 2011. The load factor for international, domestic and regional routes was 83.09%, 82.76% and 75.60% respectively, representing a decrease of 0.4, 2.9 and 2.7 percentage points year-over-year respectively.

During the Period, cargo capacity as measured by Available Freight Tonne Kilometers (“AFTK”), increased by 7.6% year-on-year to 2.20 billion. Cargo traffic as measured by Revenue Freight Tonne Kilometers (“RFTK”), increased by 10.4% to 1.35 billion. The cargo and mail load factor was 61.37%, a rise of 1.6 percentage points year-on-year.

By the end of the reporting period, the value of the total assets of the Group increased by 6.50% year-on-year to RMB 184.6 billion, with a debt-to-asset ratio of 71.3%, slightly decreased from 71.4% reported at the beginning of the period. Given the current profitability of the company, its long-term debt coverage risk remained under control, and at a low level in comparison with the domestic aviation industry norm.

Outlook

Mr Wang Changshun, Chairman of Air China, said, “Many challenges lay ahead for the aviation industry. Facing a complicated and highly changeable operating environment, the Group will actively initiate measures to address the market trends, consistently improve the customer experience, and strengthen the business collaboration with its strategic partners to achieve its goal of sustainable development.

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About Air China

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 and products in China. Its operational headquarters is in Beijing, a major domestic and international hub in China. It also provides airline-related services, including aircraft maintenance, ground handling services in Beijing, Chengdu, and other locations. As of 30 June, 2012, the Company operated a fleet of 441 aircrafts, with average fleet age of 6.58 years. Passenger traffic routes have reached to 285 routes, including 75 international, 15 regional and 195 domestic routes. The Company’s network covers 30 countries and regions globally and 146 cities, including 46 international, 4 regional and 96 domestic cities. Air China was listed on Hong Kong Stock Exchange and London Stock Exchange on December 15, 2004 under codes 00753 and AIRC respectively. 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.

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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