Slides
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Air China Limited 2026 Interim Results
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目 录 Focused Execution Operating Performance Priority Tasks Financial Analysis According to IFRS 2
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01 Focused Execution 3
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Environment of Industry Development • The Middle East conflicts have severely disrupted the industry, driving a sharp increase in fuel costs. • Multiple authorities are cracking down on “involution-style” competition, regulating improper business practices and continuously refining the civil aviation price governance mechanism. • Rising international trade tariff barriers are notably undermining stability in the air cargo and logistics market. • Rollout of visa-free policies and visa facilitation policies continues, unlocking sustained demand for international routes. • Persistent risks in the global aviation supply chain continue to significantly constrain effective capacity deployment. • A rare window of opportunity is taking shape for hub construction and international route network upgrades. Challenges Opportunities 4
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Stable Safety Performance Steady improvement in production organization efficiency Continuous enhancement of safety management Commitment to “put safety first” remains unshakable Upgraded risk prevention and control effectiveness Taking concrete actions to ensure “Two Absolute Safeties ” The Group recorded 1.47 million safe flight hours, and successfully accomplished critical missions. 5
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Positive Results in Enhancing Operating Performance • Tap into engine resource potential to improve aircraft availability • Optimize the “Three-Ring” network operations to increase aircraft utilization • Enhance Air China group market optimization and capacity coordination • Expand the “Belt and Road” routes to 77 routes, serving 32 countries Optimize Passenger Transport Production Organization • Embrace a cost-conscious mindset and build a company-wide cost management system • Continue to strengthen fund coordination and enhance debt risk management • Improve capital efficiency and reduce financial expenses Deepening Cost Management • Scientifically control to balance capacity and pricing and deepen Air China group coordination • Build an aviation ecosystem through multi-dimensional cross-sector partnerships • Optimize existing products and develop innovative products • Persist in integrating passenger and cargo operations to diversify revenue streams Completed a RMB20 billion private placement and gearing ratio decreased by 4.9 percentage points Refined Revenue Management Strengthening the Foundation for Business Development 6
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Solid Progress in Serving the National Strategy • Accelerated the planning of the development framework at Beijing Daxing International Airport. • Successfully fulfilled major transportation support missions, including the Milan Winter Olympics, the “Two Sessions,” and the Middle East evacuation. Proactively Aligning with National Development Framework • Advanced 25 key tasks across 9 categories in all respects. • Gained 5 percentage points in the Asia-Europe transfer market share. Accelerating Beijing Hub Development Interline partners increased to 150. Consistently recognized at the highest level for 9 consecutive years. Expanding Industry Influence Actively Fulfilling Social Responsibilities 7
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Solid Progress in Reform and Development The SOE reform deepening and upgrading initiative received a Grade A in the SASAC annual performance assessment Refined Top-level Design Breakthroughs in Deepening Collaborative Development Notable Results in Key Reform Tasks Accelerated Digital and Intelligent Transformation • Formulated the “15th Five-Year P l a n ” a n d e s t a b l i s h e d t h e “1+N+X” planning system • Strategically planned key tasks for the new round of deepening reform • Deepened the integration of the Air China group • Continued to strengthen collaboration in key areas • Optimized the management and control model of the aircraft maintenance system • Further advanced the construction of the Financial Shared Service Center (FSSC) • Building systems • Governing data • Deploying AI 8
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Steady Improvement of Service Quality and Efficiency A More Effective Service Support for Operations • Refined the dedicated account manager responsibility system • Continuously enhanced service support capabilities during peak periods A Stronger Brand Communication Momentum Selected as a “2025 Outstanding Case of International Communication by Central SOEs” . A More Robust Service Product Portfolio Established a full-process management mechanism for marketing service products. A More Intensive Application of Smart Services Launched convenient features on the APP. 01 03 02 0404 9
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02 Operating Performance 10
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Key Operating Indicators ASK 180.68 billion RPK 153.11 billion 6.82% 1.75% Yield per RPK 0.5247 yuan Daily Utilisation of Aircraft 8.59 hours 2.74% 0.17hrs 11
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0.84 4.11 -0.73 4.01 13.98 6.81 -5 0 5 10 15 20 Domestic International Regional ASK change RPK change 12 （%） In the first half of 2026, the Group's ASK reached 180.68 billion, representing a year-on-year increase of 1.75%; RPK reached 153.11 billion, representing a year-on-year increase of 6.82%. Passenger Input-Output Analysis
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Passenger Load Factor Performance 79.1 82.1 79.7 81.3 81.3 81.1 80.1 83.7 83.2 85.3 83.3 82.282.2 85.9 86.3 85.5 84.5 83.9 79 80 81 82 83 84 85 86 87 1 2 3 4 5 6 7 8 9 10 11 12 2025年单月客座率 2026年单月客座率 (%) In the first half of 2026, the Group recorded a passenger load factor of 84.74%, representing a year-on-year increase of 4.02 percentage points. 13 Monthly Passenger Load Factor in 2025 Monthly Passenger Load Factor in 2026
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Fleet Composition 1 2 3 4 • Group fleet: 972 aircraft • Average age: 10.60 years Fleet Size Expansion • Airbus: 452, Boeing: 471, COMAC: 46, Business jets: 3 • Wide-body aircraft : 130, Narrow-body aircraft: 839 A diversified fleet mix • 17 aircraft were introduced, all narrow-body. • 9 aircraft were retired, including 1 wide- body aircraft and 8 narrow-body aircraft. Orderly Fleet Renewal • 2026: net increase of 17 aircraft is projected • 2027: net increase of 31 aircraft is projected • 2028: net increase of 67 aircraft is projected Clear Future Planing 14
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Operating Data of the Company and Its Major Subsidiaries June 30, 2026 Air China (Parent) Shenzhen Airlines Shandong Airlines Air Macau Cathay Pacific Fleet size (aircraft) 536 242 (consolidated) 142 23 235 (consolidated) Average age (year) 10.16 10.71 11.86 9.64 12.3 ASK (100 million) 1,103.59 389.41 235.56 34.52 746.62 YoY Change (%) 2.60 0.78 -0.45 -0.12 11.8 RPK (100 million) 925.27 338.65 204.57 27.04 653.34 YoY Change (%) 8.90 3.50 3.68 3.31 15.3 Passengers (10 thousand) 4,127.20 2,088.31 1,334.15 168.86 1,600.6 YoY Change (%) 4.71 2.51 0.54 7.88 17.5 Average Passenger load factor (%) 83.84 86.96 86.84 78.34 87.5 YoY Change (pt) 4.85 2.29 3.46 2.60 2.7 15
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03 Financial Analysis 16
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Key Financial Indicators (RMB 100 million) 1H 2026 1H 2025 YoY(%) Revenue 892.68 807.57 10.54 Operating expenses 956.03 850.70 12.38 Profit from operations -30.65 -16.96 -80.69 Finance costs 24.09 28.91 -16.66 Share of results of associates 12.91 12.20 5.83 Share of results of joint ventures 2.41 1.17 105.36 Net exchange gain 6.52 1.76 269.62 Profit before taxation -31.31 -27.88 -12.32 Profit for the period -34.28 -27.10 -26.47 Profit attributable to equity shareholders of the Company -22.88 -18.05 -26.76 Profit per share (RMB yuan) -0.13 -0.11 -18.18 EBITDA 127.41 131.41 -3.05 17
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Revenue 0 100 200 300 400 500 600 Domestic International Regional Air Passenger Revenue 1H 2025 1H 2026 0 10 20 30 40 Domestic International Regional Air Cargo and mail Revenue 1H 2025 1H2026 14.64% 6.41% 18.07% 24.58% 9.52% 28.99% (RMB 100m) (RMB 100m) 18 Air Passenger Revenue- Domestic 64.75% Air Passenger Revenue -International 26.82% Air Passenger Revenue- Regional 3.30% Cargo Revenue 5.13% 1H 2026 Air Passenger Revenue- Domestic 67.11% Air Passenger Revenue -International 25.05% Air Passenger Revenue- Regional 3.18% Cargo Revenue 4.66% 1H 2025
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(RMB) 1H 2026 1H 2025 YoY (%) Yield per RPK (RMB) 0.5247 0.5107 2.74 Including： Domestic 0.5253 0.5134 2.32 International 0.5064 0.4889 3.58 Regional 0.7173 0.6683 7.33 Yield per RFTK (RMB) 1.7387 1.4853 17.06 Including： Domestic 1.0671 0.9419 13.29 International 2.0134 1.7344 16.09 Regional 3.8146 3.3024 15.51 Yield 19
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(RMB 100m) 1H 2026 1H 2025 YOY (%) Jet fuel costs 327.66 243.27 34.69 Take-off, landing and depot charges 105.22 106.14 -0.86 Depreciation and amortisation 158.06 148.38 6.53 Aircraft maintenance, repair and overhaul costs 79.08 72.92 8.44 Employee compensation costs 181.11 178.49 1.47 Air catering charges 21.07 21.05 0.11 Selling and marketing expenses 22.87 24.10 -5.12 General and administrative expenses 9.11 7.98 14.19 Others 51.85 48.36 7.20 Total 956.03 850.70 12.38 Jet fuel costs 28.60% Takeoff, landing and depot charges 12.48% Depreciation and amortisation 17.44% Aircraft maintenance, rep air and overhaul costs 8.57% Employee compensation costs 20.98% Air catering charges 2.47% Selling and marketing expenses 2.83% General and administrative e xpenses 0.94% Others 5.69% 1H 2025 Jet fuel costs 34.27% Takeoff, landing and depot charges 11.01% Depreciation and amortisation 16.53% Aircraft maintenance, repair and overhaul costs 8.27% Employee compensation costs 18.95% Air catering charges 2.20% Selling and marketing expenses 2.39% General and admini strative expenses 0.95% Others 5.43% 1H 2026 Operating Expenses 20
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Sensitivity Analysis of Fuel Price Changes fuel price change by 5% Jet fuel costs RMB1.64 billion (RMB 100 million) 243.27 327.66 1H 2025 1H 2026 34.69% Fuel price factor: +RMB8.71 billion Fuel consumption factor: -RMB0.27 billion Analysis of Changes in Jet Fuel Costs Jet Fuel Costs 21
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Current Liabilities 39.63%Non‑current Liabilities 60.37% Current assets 10.81% Non- current Assets 89.19% Total Assets RMB352.21 Billion +2.68% Total Liabilities RMB295.44 Billion -2.76% Gearing Ratio 83.88% -4.69pt Assets and Liabilities Structure 22
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(RMB 100m) June 30, 2026 Percentage December 31, 2025 Percentage RMB 1,928.41 89.53% 2,041.18 89.40% USD 222.19 10.31% 238.35 10.44% EUR 1.69 0.08% 1.82 0.08% JPY 0.72 0.03% 1.18 0.05% Others 0.99 0.05% 0.67 0.03% Total 2,154.00 100.00% 2,283.20 100.00% Sensitivity Analysis of Exchange Rate Change Change in the RMB/USD exchange rate by 1% Net Profit RMB151 million 39.63% 60.37% Short‑term Long-term Short & Long-term Liabilities Structure Interest‑Bearing Liabilities 23
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04 Priority Tasks 24
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Priority Tasks Work Safety • I m p l e m e n t w o r k s a f e t y responsibility • Strengthen the construction of the safety management system • En h a n c e i d e n t i f i c a t i o n a n d rectification of potential risks and hazards • Improve the development of team work style Profitability Enhancement • Optimize the allocation and utilization of resources • Refine marketing strategies • Seize market opportunities • Consolidate the responsibility for coordination and collaboration • Advance cost control • Solidify the foundation for development Service Quality Improvement • Consolidate the foundation of service management • Improve operational performance • Elevate the quality of service supply • advance the enhancement of brand value Digital & Intelligent Transformation • Strengthen top-level design • Promote integrated collaboration • Foster innovation-driven growth • Accelerate digital and intelligent capacity development 25
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Air China Official Website: www.airchina.com.cn Tel: +8610-6146 1049 / 2799 Email: ir@airchina.com Air China Mobile APP: Air China WeChat Subscription Account: Air China WeChat Service Account: Disclaimer: This document contains certain forecasts and outlook statements about the future. Such statements are based on specific assumptions and are subject to uncertainties and other factors. Actual results may differ materially from these forecasts. Please be aware. 26