Passenger traffic continued to display positive year-over-year growth across the board in January 2011. Month-over-month, domestic traffic experienced stronger growth, supported by travel demand during Spring Festival, and international traffic was marginally higher, but there was a slight drop in regional traffic. In terms of the cargo business, both Revenue Freighter Tonne Kilometres (RFTK) and freighter tonnage carried continued to show solid year-over-year growth in all markets. Month-over-month, cargo carried on domestic routes continued to rise slightly, contrasting with a decline on both international and regional routes.

Passenger capacity, measured in Available Seat Kilometers (ASK), grew 9.3% year-over-year. Passenger traffic, measured by Revenue Passenger Kilometers (RPK), rose by 11.6%. Capacity on international routes increased by 13.4% year-over-year, with RPK rising by 8.9%. Capacity on domestic routes increased by 6.4%, while RPK rose 13.2% during the same period. Capacity on regional routes increased by 15.5%, with RPK growing 16.4%. The passenger load factor was 78.6%, up 1.7 percentage points year-over-year. The passenger load factor for domestic and regional routes increased by 4.8 and 0.6 percentage points year-over-year, but international routes saw a 3.2 percentage point decline in load factor. (Please note that Shenzhen Airlines and Air Macau are excluded from these figures.)

Cargo capacity, measured in Available Freighter Tonne Kilometers (AFTK), rose 9.9% year-over-year in January. Revenue Freighter Tonne Kilometers (RFTK) and freighter tonnage carried increased by 14.5% and 13.2%, respectively, compared with January 2010. The cargo load factor improved to 58.8% in January, an increase of 2.3 percentage points year-over-year.

On 11 January, the company launched a new flight from Guangzhou to Guangyuan (three times a week).

During the month, Air China purchased a total of 273,000 tonnes of jet fuel at an average price of RMB6,229 per tonne, a year-over-year increase of 16%. The average jet fuel purchase price at international airports was RMB5,804 per tonne, and the average purchase price of jet fuel for international flights at the top six Chinese airports was RMB6,048 per tonne, representing 20% and 18% year-over-year increases, respectively. The average jet fuel purchase price for domestic flights was RMB6,449 per tonne, an increase of 14% compared with January last year.

In January, the company made the following adjustments to jet fuel surcharges:

Effective Date (Based on Ticket Issue Date)	Route	Previous Rate (Per Head Per Sector)	New Rate (Per Head Per Sector)
January 1	Hong Kong to Mainland China	HKD120	HKD129
	Mainland China to Hong Kong	RMB103	RMB 111
January 5	South Korea to Mainland China	USD22	USD30
	Mainland China to Indonesia Mainland China to Myanmar	RMB300	RMB350
	Mainland China to Vietnam Mainland China to Philippines Chengdu to Nepal	RMB300	RMB310
	Mainland China to Mongolia	RMB230	RMB250
	Mainland China to Pakistan	RMB200	RMB250
	Mainland China to Thailand	RMB300	RMB400
	Mainland China to India	RMB300	RMB320
	United Arab Emirates to Mainland China	RMB400	RMB420
	United States of America to Mainland       China	USD110	USD120
	Canada to Mainland China	CAD132	CAD135
	Australia to Mainland China	AUD 80	AUD 90
	New Zealand to Mainland China	RMB240	RMB400
	Germany/ France/ Italy/ Sweden/ Spain/ Austria/ Denmark/ Finland to Mainland China	EUR100	EUR110
	England to Mainland China	GBP70	GBP75
	Russia to Mainland China	RMB700	RMB800
	Turkey to Mainland China	EUR60	EUR65
	Spain to Brazil	EUR130	EUR140
	Taiwan to Mainland China	RMB121	RMB140
	Mainland China to Taiwan	RMB170	RMB200
	Munich to Athens	-	EUR3
January 7	France to Mainland China	EUR110	EUR100
January 18	Macao to Mainland China	USD27.5	USD29
January 19	Mainland China to Turkey	RMB900	RMB560

During the month, the company added one B737-800, one A330-300 aircraft and one business jet, and retired one B757-200 aircraft. As of end-January, Air China operated a fleet of 284 aircraft.