Air China Limited Announces 2010 First Quarter Results

HONG KONG, April 23 /PRNewswire-Asia/ -- 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 financial results(1) for the first quarter ended March 31, 2010 ("the Period").

    Results Highlights

          RMB billion              Q1 2010         Q1 2009        Change (%)
                                 (Jan - Mar)     (Jan - Mar)
       Operating Revenue            14.70           11.24              30.7
       Operating Profit              2.54            0.26             894.2
          Net Profit                 2.17            0.98             121.3
      Earnings per share(RMB)        0.19            0.08             137.5



    Operating and Business Highlights

Continued Air Traffic Growth Momentum

During the Period under review, Air China recorded a 30.7% year-over-year increase in operating revenue, to RMB14.7 billion, driven by sustained growth in domestic traffic and a recovery in international traffic and cargo business. Operating profit increased by 894.2% compared with the same period in 2009 to RMB2.54 billion. The Company reported a net profit of RMB2.17 billion, an increase of 121.3% compared with a net profit of RMB0.98 billion in the first quarter 2009.

During the Period, passenger capacity, measured in Available Seat Kilometer ("ASK"), rose by 10.64% year-over-year to 26.59 billion. Passenger traffic measured by Revenue Passenger Kilometers ("RPK") was 20.9 billion, up 15% from the first quarter 2009. Passenger traffic or RPK on international, domestic and regional routes increased by 19.04%, 12.4% and 16.35% year-over- year to 7.79 billion, 12.08 billion and 1.03 billion, respectively. Passenger load factor was 78.6%, an increase of 2.97 percentage points compared with the same period in 2009. The load factor for international, domestic and regional routes was 81.97%, 77.0% and 73.77%, respectively, up 6.55, 0.55, and 5.54 percentage points year-over-year, respectively.

Driven by the continued global economic recovery, cargo business also experienced a solid rebound. Cargo capacity, measured by Available Freight Tonne Kilometers ("AFTK"), increased by 20.76% to 1.8 billion. Cargo traffic, measured by Revenue Freight Tonne Kilometers ("RFTK"), increased by 51.28% year-over-year to 1.04 billion. Cargo and mail load factor improved to 57.64%, a significant increase of 11.63 percentage points compared with the same period last year.

Outlook

Air China Chairman Mr. Kong Dong said: "We are pleased to deliver healthy results to start off 2010. We expect to see better growth potential in the domestic market driven by the Shanghai World Expo and the Asian Games this year. Meanwhile, recognizing uncertainties such as jet fuel prices and interest rate, we remain cautiously optimistic about our prospects for the remaining part of the year. "

"We remain focused on executing our proven growth strategy, confident that our strategic priorities and management capabilities leave us well-positioned to seize market opportunities and deliver positive results to our shareholders."

    (1) All figures are unaudited, stated according to PRC GAAP.  The
        operating figures include those of Air Macao.

About Air China Limited

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 head office is in Beijing, a major domestic and international hub in China. It also provides airline-related services, including aircraft maintenance, ground services in Beijing, Chengdu, and other locations. As of 31 December, 2009, the Company operated a fleet of 262 aircraft, serving 156 destinations in 32 countries and regions. Air China was listed on the Hong Kong Stock Exchange and the London Stock Exchange on December 15, 2004 under codes 00753 and AIRC respectively. On August 18, 2006, Air China was listed on the Shanghai Stock Exchange under code 601111. For further details, please visit Air China's website: http://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.

    Contact:

    Air China:
     Rao Xinyu, General Manager of IR
     Air China Limited
     +86-10-6146-2777
     [email protected]

     Joyce Zhang
     Air China Limited
     +86-10-6146-2560
     [email protected]

    Investor Relations:
     Ruby Yim
     Taylor Rafferty, Hong Kong
     +852-3196-3712
     [email protected]

     Mahmoud Siddig
     Taylor Rafferty, New York
     +1-212-889-4350
     [email protected]

SOURCE Air China Limited