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1 China Airlines 2025 4th Investor Conference Nov.12’ 25
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2 2 Disclaimer • The information disclosed in this presentation and its accompanying announcements, including content relating to business outlooks, financial operations, and business forecasts, is based on information derived from internal corporate data and external economic developments as a whole. The Company is not responsible for updating or making adjustments to the contents of this presentation to reflect the actual needs of the market, the latest policies or the ongoing changes of the economics. • This information disclosed here only represents the outlooks based upon the available data for the current time and does not indicate or ensure the actual performance in the future. Neither should the data be taken as the full statement of the future development of the company nor the industrial phenomena. • For the convenience of readers, this presentation has been translated into English from an original Chinese version. If there is any conflict between these two versions any misinterpretation in place , information in the Chinese version shall prevail.
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3 3 Agenda 2025Q1-Q3 Results Highlights Passenger Strategy and Outlook Cargo Strategy and Outlook Aircraft Maintenance Development
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4 4 2025Q1-Q3 Results Highlights
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5 5 2025 Q1-Q3 2024Q1-Q3 Diff. YoY Operating revenue 1,549.8 1,509.3 40.5 2.7% Passenger revenue 933.9 971.5 -37.6 -3.9% Cargo revenue 487.1 428.6 58.5 13.7% Other operating revenue 128.8 109.2 19.6 18.0% Net Operating Income 157.6 133.5 24.1 18.1% Net Income After Tax 122.5 113.4 9.1 8% Net Income Attributable to Owners of the company 110.0 103.7 6.3 6.1% Earnings Per Share (TWD) 1.81 1.71 0.10 5.8% 2025 Q1-Q3 Financial Performance Revenue reached NT$155 billion(YoY +2.7%), operating net profit NT$ 15.8 billion(+18.1%), and EPS of NT$1.81 (+5.8%), continuing strong growth for Q1-Q3 2025. (TWD 100 Million) Based on consolidated financial report
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6 6 1,094 1,206 1,292 1,326 Q1-Q3 Revenue for 2019 -2025 NTD100 million The Growth Operating Revenue 2019 2023 2024 2025 Operating revenue increased by 3% to 132.6 billion, and 10% increase from 2023. Passenger and cargo revenue in North America increased the most, by 7%, while China and European routes also growth. Based on individual financial report +1% Euro +2% PRC +7% NEA +0.2% SEA
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7 7 Passenger and cargo as dual growth drivers, enhancing revenue structure The growing premium cabin revenue and its share Rising cargo yield drive cargo revenue growth 149 180 192 193 22% 29% 28% 30% 0% 5% 10% 15% 20% 25% 30% 100 120 140 160 180 200 220 2019 2023 2024 2025 Premium cabin revenue (TWD 100 million) Premium cabin revenue share(%) Annual data above is based on the first three quarters for comparison With rising premium cabin revenue in passenger services and increased freight rates boosting cargo income, the dual passenger-cargo strategy continues to optimize overall operating revenue. 315 422 427 485 8.11 10.4 11.0 11.6 0 100 200 300 400 500 600 700 0.00 2.00 4.00 6.00 8.00 10.00 12.00 2019 2023 2024 2025 Cargo revenue (TWD 100 million) Cargo yield (TWD/FRTK)
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8 8 4% 3% 4% 4% 5% 5% 11% 11% 15% 14% 14% 14% 17% 17% 30% 32% 2025Q1-Q3 2024Q1-Q3 Fuel Labor Rental & Depr. Maint. Airport Passenger Svc. Sales Others Cost Breakdown and Comparison Based on individual financial report The composition of operating costs in the first three quarters was similar to last year. Fuel cost share decreased due to lower jet fuel price, while extended aircraft leases led to higher maintenance preparation costs.
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9 9 Capacity growth continues to drive lower per-unit cost 8.87 8.56 4.45 3.78 13.32 12.34 2024Q1-Q3 2025Q1-Q3 Cost Per ATK Fuel cost per ATK Cost per ATK(without fuel) In the first three quarters of 2025, overall capacity increased by 8% compared to last year, leading to an 7% decrease in unit costs, and the benefits of economies of scale are gradually becoming apparent. 8,796 9,493 2024Q1-Q3 2025Q1-Q3 ATK +8% -7% *Cost per ATK= operating cost/ATK (TWD) **Based on individual financial report -4%
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10 10 Fuel Cost Analysis 2025Q1-Q3 2024Q1-Q3 YoY Brent (USD/BBL) 70.5 82.3 -14.3% Jet fuel (MOPS) (USD/BBL) 85.9 97.4 -11.8% Fuel Consumption (10K/BBL) 1,207 1,147 5.2% Hedging (gain) lost (TWD 100 million) 0.13 -0.18 - Total fuel cost (TWD 100 million) 358.4 391.1 -8.4% In the first three quarters of 2025, average fuel prices declined by 11.8%, while fuel consumption rose by 5.2%. The decline in fuel prices offset the costs. Total fuel cost reduction 8.4% compared to the previous year. Based on individual financial report
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11 11 2026 Brent crude oil Market Outlook U.S. Energy Information Administration (EIA) Short-Term Energy Outlook 2025 October Non-OPEC crude production has exceeded expectations, while OPEC+ is gradually easing output cuts. Rising inventories continue to pressure oil prices. According to EIA and Bloomberg forecasts, Brent crude is expected to average US$52 – $63 per barrel in 2026. 52 52 52 53 61 62 63 62 45 50 55 60 65 70 2026Q1 2026Q2 2026Q3 2026Q4 EIA BloombergUSD/BBL
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12 12 79% 73% 72% 71% 10.44 12.80 14.16 15.50 8.00 12.00 16.00 65% 75% 85% 2019/12 2023/12 2024/12 2025/09 Group Financial Ratio CAL Financial Ratios trend Stable growth and improving financial health 25Q3 v.s 19Q4 Book Value per share +5.06 Debt ratio -8ppt Based on consolidated financial report Debt Ratio Book Value Per Share
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13 13 We have been receiving credit ratings from Taiwan Ratings since 2001. Starting in 2024, we have maintained the best long-term credit rating of twA- for two consecutive years. Long-term Rating keep「twA-」 Long-Term Rating「twA-」 Short-Term Rating「twA-2」 Outlook「Stable」
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14 14 Passenger Strategy and Outlook
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15 15 11,870 6,062 13,247 6,000 9,000 12,000 15,000 2025 2028 2031 2034 2037 2040 2043 RPK CAGR 4.2% / 3.6% Global Passenger Market Outlook Source：IATA (2025.10)、Boeing CMO 2025–2044 (2025.09)、Airbus GMF 2025-2044 (2025.09) RPK : Revenue Passenger Kilometer Global Passenger Traffic Expected to Grow Steadily2025-2027 Global / Regional GDP Outlook 2.4% 3.5% 1.8% 1.0% 2.1% 3.8% 0 50 100 150Trillion US$ 2025 2026 2027 • According to IATA, global GDP is expected to maintain steady growth from 2025 to 2027, with a projected 2.4% increase worldwide and 3.5% in the Asia-Pacific region in 2026. • Economic growth continues to drive air travel demand, with Boeing and Airbus projecting average annual passenger traffic growth of 4.2% and 3.6%, respectively. RPK billion Boeing Airbus % YOY in 2026
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16 16 3.0% 17.2% 15.6% 6.5% 9.9% 8.9% 21.8% 9.5% 5.5% 25.0% 10.8% 10.1% 5.8% 0 5 10 15 20 25 Taiwan-SA Taiwan-Africa Taiwa-Middle East Taiwan-South Asia Taiwan-Oceania Taiwan-NA Taiwan-Europe HKG-NA Oceania-Europe China-NA SEA-NA Taiwan-SEA Taiwan-NEA 1,584 836 630 574 387 342 214 159 168 195 179 87 61 42 37 4.9% 17.6% 9.1% 7.6% 12.4% 5.4% 14.9% 17.9% 11.5% 9.9% 5.0% 11.2%9.7% 9.2% 14.8% -10%-9%-8%-7%-6%-5%-4%-3%-2%-1%0%1%2%3%4%5%6%7%8%9%10%11%12%13%14%15%16%17%18%19%20% - 1,000 2,000 3,000 4,000 5,000 Japan China South Korea Hong Kong Vietnam Thailand Philippines Macau Malaysia U.S. Singapore Indonesia Australia Canada Germany 2,025 2,026 2,027 CAGR Taiwan Passenger Market Outlook Source：IATA, Passengers by Country Pair (2025.10) CAGR：Compound Annual Growth Rate Passengers by Region (Million) Taiwan Inbound & Outbound Passengers by Country • In the next three years, Northeast and Southeast Asia will remain Taiwan’s key source markets, with continued potential in transit traffic. • All Taiwan international markets show growth, with strategies aligned to market maturity. %CAGR 2025-20272027 Unit:10K
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17 17 Passenger Fleet Plan Aircraft Type End of SEP 2025 A321neo 19 A350-900 15 A330-300 13 737-800 10 777-300ER 10 Total 67 • Capacity to expand through additional aircraft purchases and leases to support growth. • Starting in 2026, the introduction of 787-9 aircraft will enhance long-haul capacity and network flexibility. Aircraft Type End of 2026 Remark A321neo 27 ＋8 A350-900 18 ＋3 A330-300 7 - 6 737-800 6 - 4 777-300ER 10 787-9 7 ＋7 Total 75 ＋8
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18 18 Building the Next-Generation Fleet for the Next Decade 777-9 x 10 （To be introduced from 2030） A350-1000 x 10 （To be introduced from2029） Large Widebody Medium Capacity 787-9 x 18 （To be introduced from2026） 787-10 x 6 （To be introduced from2027） Narrowbody A321neo x 30 Complete A333 phase- out by 2027 Complete 738 phase-out by 2028 Note: 777 phase-out under evaluation from 2029; A350-900 from 2034
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19 19 2025 Q1~Q3 2024 Q1~Q3 2025 vs2024 2019 Q1~Q3 2025 vs2019 Passenger revenue (TWD 100m) 777.3 813.3 -4.4% 728.8 6.6% Revenue passenger (10 Thousand) 865 859 0.7% 1,176 -26.5% Available Seat Kilometer (100 million) 356 354 0.4% 393 -9.4% Average load factor (%) 77.9 79.2 -1.3ppt 80.6 -2.7ppt Passenger yield (TWD/RPK) 2.80 2.90 -3.3% 2.30 21.7% Passenger revenue for the first three quarters of 2025 reached NT$77.73 billion. Passenger growth outpaced capacity, but increased market competition slightly reduced load factor and yield, in line with other Taiwan full-service carriers. Travel demand is expected to remain resilient and continue growing as the economy and industry develop. NEA 29% TPA 22% SEA 18% EUR 13% China 7% OCE 7% HKG 2% 2025Q1~Q3 PAX Revenue by Region 2025Q1~Q3Passenger Operational Results Based on individual financial report
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20 20 92 96 90 89 82 95 98 93 78 85 85 91 106 83 83 90 83 86 88 86 72 91 76.8% 79.5% 82.3% 81.3% 75.5% 81.9% 81.5% 81.6% 72.6% 75.6% 77.5% 78.1% 82.3% 78.4% 78.1% 81.3% 75.6% 78.4% 77.7% 79.3% 69.8% 79.7% 60 70 80 90 100 110 120 130 140 150 0% 20% 40% 60% 80% 100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Pax Rev 2025 Pax Rev 2024 L/F 2025 L/F NTD 100ML/F 2025Monthly Passenger Revenue & L/F Based on individual financial report
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21 21 2025Q1~Q3 Ancillary revenue / Tickets Reissue Charge Chargeable Seats Web Upgrade Excess Baggage No Show Fee Revenue for the First Three Quarters of 2025 NT$1.94 billion, representing a 10% YoY increase + + + + Reissue Fee Percentage : 53.1% Percentage : 13.4% Percentage : 2.5% Percentage : 27.4%Percentage : 3.6%
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22 22 Passenger Sales Strategy ▪ Leveraging geographic advantage to expand North America network through partnerships with Southwest— The first Asian carrier to fly direct to Phoenix. ▪ Allocate the Aircraft fleet with flexibility to maximize revenue. ▪ Strengthen & deepen corporate travel business. ▪ Develop new & young generation customers. ▪ New membership system makes earning points easier and upgrades faster—no more waiting. ▪ Partnering with other industries to expand mileage use and support ESG sustainability together. ▪ Optimize the China Airlines website to enhance user experience. ▪ Free Wi-Fi onboard. ▪ Upgraded inflight dining and amenities. Product — Steady Growth and Strategic Deployment Customer Service — Evolving with Innovation
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23 23 First in Asia to Fly Nonstop to Phoenix—Connecting Tech Hubs and Expanding North American Reach 2025 ▪ TPE – PHX : New direct service starting December 3rd, operating three times weekly 2026 ▪ TPE – JFK： Continuously increasing flight and expanding new routes based on market demand to strengthen the North America–Asia Nonstop Access to Key European Cities for Business and Leisure 2025 ▪ TPE – LHR : Increase frequency from November 18th, with direct flights every Tuesday, five weekly flights per week. 2026 ▪ TPE – PRG : Increase frequency from 2026 April 2nd, with an additional Thursday flight, resulting in three nonstop flights per week. Deepening presence in Southeast Asia with convenient travel options 2025 ▪ TPE – CNX : Increase frequency from October 26th with additional two weekly flights, with daily direct service ▪ TPE – NRT : CI106/107 increase frequency from 3 weekly to daily. Route Expansion for Business Growth North America Europe Regional
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24 24 • Interline partnerships with Southwest Airlines and Air North connect Asia to 30+ U.S. destinations, enabling seamless transfers and access to aurora-viewing spots. • Strengthening JetBlue collaboration with exclusive initiatives to enhance North American connectivity. Southwest Partnership Connects Air North and JetBlue to Broaden North American Reach
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25 25 Customer Service Evolved, Journeys Made Safer Advancing Our Service: Expanded Customer Support Channels in 2025 2025/05 AI Customer Service • Generative AI platform • 12 languages • Digital Travel Assistant 2025/12 Text-base Customer Service • Chinese/English • Services provided are the same as those offered via phone. (Taiwan/North America) 2025/10 24hours Customer Service • Chinese/English(Taiwan/North America) • Hong Kong & Tokyo join the service in 2026Q1
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26 26 “Zootopia2” Themed Aircraft Debut • First-ever “Zootopia 2” livery introduced on our flagship Boeing 777 long-haul fleet • Dedicated campaign website launched on October 16 Social media promotion reached up to 100,000 users • Inaugural flight CI006: Taipei to Los Angeles on November 19
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27 27 Miles Bring Smiles ▪ New Membership Points System Simplifies calculations and makes tier progress easy to track. Discounted fares (L class), group fares (G class), and Mandarin Airlines domestic flights are included in calculation. Points for Tier Upgrades & Miles for Rewards. ▪ Miles & Stays Book hotels via platform → Earn miles or use miles to pay. Works for domestic & international travel. ▪ Miles Vouchers Redeem miles for 130+ brands & cash vouchers. Includes department stores, supermarkets, dining, convenience stores. ▪ Light Travel Challenge Complete tasks → Earn points → Collect 8 points for Light Travel Member status + one-time ticket discount. ▪ Charity Miles Donation Donate miles to support charitable causes and help those in need.
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28 28 A New Chapter of Corporate Rewards Begins
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29 29 Co-branded inflight catering services TOUTOUAN Autumn Delicacies MIPON Classic Taiwanese Cuisine MOONMOONFOOD Co-branded Yang Ming Spring Little Tree Food In-Flight Lounge Bar in Collaboration with BLAH BLAH Bar x SUNMAI co-branded cocktails Sweet Dessert and Drinks in Collaboration with Woo Tea New IP Care Bears Le Palais Partnering with Michelin Restaurants and Leading Brands to Highlight Quality and Soft Power
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30 30 ESG Transportation Sustainability Award – Gold Award1 st The Only Airline to Receive the Award ESG 2024 Continuously Achieving Excellence 2016-2025 Selected for S&P Sustainability YearBook8 th 2016-2025 Consecutive years selected for FTSE4Good Index Series 10 th Certified by SBTi Consecutive years selected for Global Corporate Sustainability Award 6 th Sustainability Report : Gold Class 3rd time Best Sustainability Report 2016-2024 Consecutive years selected for FTSE4 Good Index Series7 th Consecutive years selected for Taiwan High Compensation 100 Index Taiwan Employment Creation 99 Index 9 th 2019-2024 Consecutive years selected for Taiwan Corporate Sustainability Award 11th 2014-2024 2017-2025 The first Taiwanese airline to receive approval 1 st Top 1~5% of the Global Aviation Industry Ranked first in the global aviation industry in 2023. 8 th 2016-2023 Selected for DJSI Emerging Market Index Achieved the highest ESG score in the global aviation industry in the DJSI reassessment for 2022 and 2024. SBTi : Science Based Targets Initiative；ESG : Environment , Social , Governance Source：China Airlines’ ESG Website
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31 31 Cargo Strategy and Outlook
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32 32 2025Q1-Q3 Cargo Operational Results 2025Q1-Q3 YoY Cargo revenue (TWD 100 million) 485 13.7% Revenue Freight Ton Kilometer (million) 4,192 8.4% Available Freight Ton Kilometer (million) 6,292 12.2% Average load factor (%) 66.6% -2.3ppt Cargo yield (TWD) 11.57 5.0% Based on individual financial report TPA, 66% EUR, 11% SEA, 11% PRC, 5% NEA, 3% OCE, 1% HKG, 3% 2025Q1-Q3 CGO Revenue Sources by Region Driven by the transportation of AI and semiconductor-related products, freight revenue in the first three quarters of 2025 increased by 13.7% compared with last year, with North America, Europe, and Southeast Asia routes as the main sources of freight revenue.
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33 33 • Air cargo demand for AI servers and semiconductor products has been strong, so monthly revenue from January to September shows YoY growth. • In peak season, Q4 cargo volume and rate are expected to increase, and the performance is anticipated to be better than Q3. 2025Q1-Q3Cargo Revenue and Yield Based on individual financial report 40 36 46 47 50 50 52 53 52 57 58 62 53 45 59 57 54 53 56 55 54 55 10.03 9.42 10.42 11.06 11.28 11.58 11.40 11.91 11.85 12.19 12.35 13.12 12.24 11.52 12.18 12.85 11.56 11.01 10.76 10.93 11.36 11.43 30 40 50 60 70 80 0 2 4 6 8 10 12 14 16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Cgo Rev 2025 Cgo Rev 2024 Yield 2025 Yield NT $billion Yield
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34 34 Global GDP in 2026 is expected to grow positively, including: • The Asia-Pacific region will exceed the overall average and remain the main engine of the world economy. • Taiwan is also expected to grow by 2.1% to 2.8%. For AI servers and related products, Taiwan plays a key role in AI supply chain and is expected to continue to drive air cargo growth in 2026. • Continued investment : The 8 major cloud service providers are projected to increase capital expenditures by 24% year-on-year in 2026. • Diffusion effect： - Infrastructure: There is demand for data center construction everywhere. - Peripheral product upgrades: In addition to semiconductor, demand is also driven in other industries (chip, power supply, cooling system, server rack, etc.). - Industry applications: Various industries (wearable devices, healthcare, manufacturing & retail, autonomous vehicle, robotics, etc.) are widely applying these technologies, promoting industrial upgrades. Demand for e-commerce, aircraft part&engine, pharmaceutical cold chain, fresh good, auto part, and drone continues, providing positive contributions to the air cargo market. The international cargo market is expected to continue positive growth Source：IMF
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35 35 Cargo Fleet Advantage By The End of September 2025 Aircraft Type Number 744F 8 777F 10 Total 18 Source：Compiled by China Airlines • Dual-model fleet: Balancing large capacity and fuel-saving cost advantages. • Full utilization of capacity: For example, CI 777F fleet achieves a utilization rate of 17.30 hours/day, surpassing the global average of 12.94 hours/day. • Continuous fleet renewal: Gradually phasing out 744F, continuously introducing 777-8F. • One of the youngest B777F fleets in the world: Average fleet age is 2.9 years. Cargo Fleet Planning Pending Delivery Aircraft Type Number 777-8F 4
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36 36 • The only one airline operates freighters covering Europe, America, and Asia in Taiwan. • Maximizing network efficiency： - Transpacific routes include flights between Japan and the U.S., deeply cultivating import and export markets of two major economies. - European routes stop in the Middle East and India, benefiting from dual-segment cargo consolidation. • Flexible scheduling： - Adjusting frequencies in each region according to market dynamics. - Pursuing additional flight and charter business. • Cooperating with integrators and interlines to expand service area and attract cargo volume. • Rich experience in handling special cargo such as precision instruments, high-tech equipment, vehicles, aircraft engines, temperature-controlled containers, and live animals. Core Competitiveness Professional Delivery With International certificationFreighter Network Planning
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37 37 Adapting to Trends, Flexible Deployment, Maintaining No. 1 Market Share in Taiwan • External factor： - Economic growth forecasts continue to be revised upward. - U.S. tariff policies and geopolitical tensions. - Port congestion promotes the shift from sea to air transport. • Freighter supply is limited：Retirement of old aircraft and delayed delivery of new aircraft. • Continued air cargo demand： - AI development drives strong demand for servers and related products. - Continued demand for e-commerce, aircraft part, cold chain, fresh goods,drone, etc. • Fleet：Two types of freighters plus passenger aircraft belly, maximizing cargo capacity and diversifying cargo sources. • Network：Flexible adjustment of flight frequencies according to market demand. - Network deployment centered on Taiwan, with Southeast Asia, Hong Kong, and Mainland China as key regions. - Using stopover points to expand business coverage. • Global Channels： - Deepening partnerships with global/regional customers. - Securing medium-/long-term customized and project charter business. - Expanding marketplaces and developing new customer segments. • AI Application：Freight rate inquiry and booking, as well as special cargo delivery consultation. • New Market Development：Launching passenger flights to Phoenix, increasing North American import/export gateways to 13 destinations. • No.1 market share：Taiwan is the hub of AI supply chain. China Airlines has a competitive advantage with a market share of 35%, capturing major cargo business opportunities. Operational strategy Positive Growth Industry and Economic Situation
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38 38 Aircraft Maintenance Development
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39 39 2022 2023 2024 2025 Flights of Line Maintenance Service for Customers (2022–2025) TPE KHH TSA 13,127 27,113 30,248 33,675 Estimated Number of Flights (Sep.–Dec.) Aircraft Maintenance Development • Since 2022, the customer line maintenance service has shown steady growth. In 2025, the number of handled aircraft is expected to exceed 33,000, representing a 9% YOY increase, with revenue projected to grow by 19.6%. • In addition to the current maintenance capabilities Airbus A350/A330/A321、 Boeing 777/738/777F/744F, new generation aircraft maintenance capabilities will be obtained in line with the 2026–2032 fleet introduction plan, and 15 A350-900 cabin modification projects are scheduled for execution between 2027 and 2028. UNIT: FLIGHTS Number of new aircraft introductions from 2026 to 2032 Source：Compiled by China Airlines 787-9 18 787-10 6 A350-1000 10 777-9 10 777-8F 4 2026 2027 2028 2029 2030 2031 2032
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40 40 Aircraft Maintenance Development In addition to its current engine maintenance capabilities GE CF6、CFM56, the Company joined the Pratt & Whitney GTF Engine MRO Network in late 2020, and inducted its first GTF engine for maintenance in Q3 2023. In 2025, a total of 21 engines are scheduled for maintenance, a revenue increase of approximately 562.5% compared with 2024. The annual maintenance volume is targeted to expand to 105 engines by 2031. P&W Network Long-Term Capacity Plan 3,000 Units1,400 Units 2025 2034 CAL Long-Term Capacity Plan 105 Units21 Units 2025 2031 +114% +400% Current engine : CFM56-7B(737-800)、CF6-80C2(747-400F)、CF6-80E1(A330-300) GTF : Geared Turbofan (This type of engine is used in CAL A321neo fleet) UNIT: UNITS 10 21 30 50 70 80 85 105 2024 2025 2026 2027 2028 2029 2030 2031 GTF Engine Planned Maintenance Capacity (2024-2031)
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41 41 Q & A
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42 2025.11 中華航空│桃園市大園區航站南路一號 TEL│03-399-8888 感謝聆聽 Thank you