Air China Limited provided preliminary earnings guidance for the full year ending December 31, 2021. According to the preliminary estimation by the finance department of the Company, the Company recorded a loss for the year of 2021. It is expected that the net loss attributable to equity holders of the Company would be approximately RMB 14.5 billion to RMB 17.0 billion, and the net loss attributable to equity holders of the Company after deducting non-recurring profit or loss would be approximately RMB 14.8 billion to RMB 17.5 billion. The estimated results have not been audited by certified accountants. MAJOR REASONS FOR THE ESTIMATED LOSS FOR THE PERIOD: 2021 was the second year in which the COVID-19 pandemic has spread globally. The capacity input in international routes continued to be limited, and the passenger traffic for domestic routes fluctuated greatly, making it increasingly difficult for the Company to improve its operating performance. The rising oil price and exchange rate fluctuations had further intensified operating difficulties of the Company while the core business related invested
companies had also been severely affected. In the face of the pandemic, the Company insisted on focusing on its core business, strengthening the situation assessment and judgment, focusing on the improvement of quality and efficiency, and made every effort to maximise operating performance. The Company took initiatives and actively responded to and strived to minimize the impact of the pandemic in respect of strict cost control, resource planning, passenger aircraft converted for cargo operations and risk prevention and control.