1st Quarterly Report 2010

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	4,526,364	3,201,568
Provisions on payables
Contributions made
Held-for-trading financial assets
Bills receivable	2,770	2,489
Accounts receivable	2,513,390	2,201,172
Prepayments	456,744	350,257
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Interests receivable
Dividends receivable
Other receivables	571,363	492,007
Purchase of financial assets resold
Inventories	893,757	931,271
Non-current assets due within a year
Other current assets
Total current assets	8,964,388	7,178,764

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	2,435,806	1,089,515
Held-for-trading financial assets
Bills receivable	2,286	2,268
Accounts receivable	2,338,767	1,771,682
Prepayments	291,522	260,044
Interests receivable
Dividend receivable
Other receivables	801,542	678,174
Inventories	812,577	850,518
Non-current liabilities due within a year
Other current assets
Total current assets	6,682,500	4,652,201

NON-CURRENT ASSETS:
Available-for-sale financial assets
Held-to-maturity investment
Long-term receivables	183,790	182,406
Long-term equity investment	19,245,649	19,198,728
Investment property
Fixed assets	66,350,905	65,186,091
Construction in progress	11,350,474	11,081,062
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,177,929	2,195,810
Development expenses
Goodwill
Long-term deferred expenses	117,328	131,682
Deferred income tax assets	1,070,189	1,503,000
Other non-current assets
Total non-current assets	100,496,264	99,478,779
Total assets	107,178,764	104,130,980

Items	Amounts for the period	Amounts for the corresponding period of previous year
IV.	Total profit (loss is represented by "-" sign)	2,607,601	939,235
	Less: Income tax expenses	435,346	58,992

V.	Net profit (loss is represented by "-" sign)	2,172,255	880,243
	Net profits attributable to owners of the Parent Company	2,171,707	981,214
	Gains or losses attributable to minority interests	548	-100,971

VI.	Earnings per share:
	(I) Basic	0.19	0.08
	(II) Diluted	N/A	N/A

VII.	Other consolidated gains	-13,945	-1,725

VIII.	Total consolidated gains	2,158,310	878,518
	Total consolidated gains attributable to owners of the Parent Company	2,157,762	979,489
	Total consolidated gains attributable to minority interests	548	-100,971

Items	Amounts for the period	Amounts for the corresponding period of previous year
II.	Cash flows from investing activities:
	Cash received from withdrawal of investments
	Cash received from investment income	4,202
	Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	43,944	61,758
	Net cash proceeds from disposal of subsidiaries and other business units
	Other cash received from investing activities	360,647	6,297
	Subtotal of cash inflows from investment activities	408,793	68,055
	Cash paid for purchase of fixed assets, intangible assets and other long-term assets	3,338,555	1,311,745
	Cash paid for investments	38,284	265,200
	Net increase in secured loans		1,371
	Net cash payments for acquisition of subsidiaries and other business units
	Cash payments relating to other investments
	Subtotal of cash outflows from investment activities	3,376,839	1,578,316
	Net cash flows from investing activities	-2,968,046	-1,510,261

III.	Cash flows from financing activities:
	Cash received from capital injection
	Including: Cash received from capital injection of minority shareholders in subsidiaries
	Cash received from borrowings	7,623,790	10,093,162
	Cash received from issue of debentures
	Other cash relating to financing activities
	Subtotal of cash inflows from financing activities	7,623,790	10,093,162
	Cash paid for repayment of borrowings	4,472,474	7,892,173
	Cash payments for distribution of dividends, profits or interest expenses	362,586	411,374
	Including: Dividends and profit paid to minority shareholders by subsidiaries
	Other cash payments relating to financing activities	652,353	1,084,310
	Subtotal of cash outflows from financing activities	5,487,413	9,387,857
	Net cash flows from financing activities	2,136,377	705,305

Items	Amounts for the period	Amounts for the corresponding period of previous year
IV.	Effect of exchange rate changes on cash and cash equivalents	-7,645	-32,984

V.	Net increase in cash and cash equivalents	1,680,657	-64,342
	Add: Balance of cash and cash equivalents at the beginning of the period	2,636,821	2,913,332

VI.	Balance of cash and cash equivalents at the end of the period	4,317,478	2,848,990

Items	Amounts for the period	Amounts for the corresponding period of previous year
I.	Cash flows from operating activities:
	Cash received from sales of goods and provision of services	12,444,911	9,463,493
	Refund of tax and levy		2,716
	Other cash received relating to operating activities	243,184	206,361
	Subtotal of cash inflows from operating activities	12,688,095	9,672,570
	Cash paid for goods purchased and services received	7,457,642	4,579,891
	Cash paid to and on behalf of employees	1,196,816	1,022,800
	Taxes and levies paid	571,999	656,763
	Other cash paid in relation to operating activities	1,177,837	2,348,767
	Subtotal of cash outflows from operating activities	10,404,294	8,608,221
	Net cash flows from operating activities	2,283,801	1,064,349

II.	Cash flows from investing activities:
	Cash received from withdrawal of investments
	Cash received from investment income
	Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	42,342	61,756
	Net cash proceeds from disposal of subsidiaries and other business units
	Other cash received from investing activities	2,880	3,951
	Subtotal of cash inflows from investment activities	45,222	65,707
	Cash paid for purchase of fixed assets, intangible assets and other long-term assets	3,131,740	1,151,910
	Cash paid for investments	38,284	265,200
	Net cash payments for acquisition of subsidiaries and other business units
	Cash payments relating to other investments
	Subtotal of cash outflows from investment activities	3,170,024	1,417,110
	Net cash flows from investing activities	-3,124,802	-1,351,403

Items	Amounts for the period	Amounts for the corresponding period of previous year
III.	Cash flows from financing activities:
	Cash received from capital injection
	Cash received from borrowings	7,605,357	9,977,721
	Other cash relating to financing activities
	Subtotal of cash inflows from financing activities	7,605,357	9,977,721
	Cash paid for repayment of borrowings	4,411,252	7,778,113
	Cash payments for distribution of dividends, profits or interest expenses	349,062	410,249
	Other cash payments relating to financing activities	652,353	1,084,310
	Subtotal of cash outflows from financing activities	5,412,667	9,272,672
	Net cash flows from financing activities	2,192,690	705,049

V.	Net increase in cash and cash equivalents	-5,399	-15,432

IV.	Effect of exchange rate changes on cash and cash equivalents	1,346,290	402,563
	Add: Balance of cash and cash equivalents at the beginning of the period	1,089,515	1,508,947

VI.	Balance of cash and cash equivalents at the end of the period	2,435,805	1,911,510

Companies

Air China Ltd. (AIRC)

UK 100

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Name of absent directors	Position of absent directors	Reason(s) for absence	Name of proxy

Wang Shixiang	Non-executive Director	business engagement	Kong Dong
Christopher Dale Pratt	Non-executive Director	business engagement	Chen Nan Lok, Philip
Hu Hung Lick, Henry	Independent Director	business engagement	Zhang Ke

1.4	the Legal representative of the Company	Mr. Kong Dong, Chairman
	Person in charge of accounting function	Mr. Fan Cheng, Chief Financial Officer
	Person in charge of accounting department (accounting superintendent)	Mr. Xiao Feng, General Manager of the Finance Department

	At the end of the reporting period	At the end of pervious year	Increase/ decrease at the end of the reporting period as compared to the end of the pervious year
			(%)

Total assets (RMB'000)	109,290,876.00	106,163,207.00	2.95
Owner's equity (or shareholders' equity) (RMB'000)	26,080,634.00	23,922,872.00	9.02
Net asset per share attributable to shareholders of the listed company (RMB)	2.25	2.02	11.39

	From the beginning of the year to the end of the reporting period	Increase/ decrease over the corresponding period of previous year
		(%)

Net cash flows from operating activities (RMB'000)	2,519,971.00	225.75
Net cash flows from operating activities per share (RMB)	0.22	214.29

	Reporting period	From the beginning of the year to the end of the reporting period	Increase/ decrease of this reporting period as compared to the corresponding period of previous year
			(%)

Net profit attributable to shareholders of the listed company (RMB'000)	2,171,707.00	2,171,707.00	121.33
Basic earnings per share (RMB)	0.19	0.19	137.50
Basic earnings per share after deducting non-recurring profits and losses (RMB)	0.12	0.12	500
Diluted earnings per share (RMB)	N/A	N/A	N/A
Weighted average return on net assets (%)	8.69	8.69	Increased by 3.85 percentage points
Weighted average return on net assets after deducting non-recurring profits and losses (%)	5.67	5.67	Increased by 4.75 percentage points

Items	Amount

Gains/(losses) from disposal of non-current assets	-2,050
Government grants included in the profits and losses for the current period (except for those that are closely related to the Company's normal operating business and qualified under national policy to receive certain standard amount and quantities)	69,397
Gain/(loss) from changes in fair value of financial assets/liabilities held for trading and investment gains from disposal of financial assets/liabilities held for trading and available-for-sale financial assets (except for hedging activities related to the Company's normal operating business)	938,202
Other non-operating income and expenses not covered above	-231
Effect of income tax	-251,330
Effect on minority interest (after tax)	-43


Total	753,945

Name of shareholder (full name)	Number of listed shares not subject to trading moratorium held as at period end	Class of Shares

China National Aviation Holding Company	4,949,066,567	RMB ordinary shares
Cathay Pacific Airways Limited	2,217,617,455	Overseas listed foreign shares
HKSCC NOMINEES LIMITED	2,156,864,563	Overseas listed foreign shares
China National Aviation Corporation (Group) Limited	1,447,334,920	RMB ordinary share 1,332,482,920
		Overseas listed foreign shares 66,852,000
Sinotrans Air Transportation Development Co., Ltd.	80,000,000	RMB ordinary shares
China Construction Bank - Yin Hua Core Value Equity Fund	34,000,000	RMB ordinary shares
Bank of Communications - Rongtong Industrial Prosperity Fund	33,600,000	RMB ordinary shares
China Construction Bank -China AMC Dividend Mixed Open-end Securities Investment Fund	28,009,898	RMB ordinary shares
The Industrial and Commercial Bank of China - Boshi Even Allocation Hybrid Securities Investment Fund	20,800,000	RMB ordinary shares
IFC-HSBC-TEMASEK FULLERTON ALPHA PTE LTD	19,199,641	RMB ordinary shares

	By order of the Board
	Air China Limited
	Huang Bin	Tam Shuit Mui
	Joint Company Secretaries

Items	Balance at the end of the period	Balance at the beginning of the year

NON-CURRENT LIABILITIES:
Long-term borrowings	18,955,331	18,321,078
Debentures payable	9,000,000	9,000,000
Long-term payables	16,294,914	16,865,604
Specific payables
Estimated liabilities	94,438	94,438
Deferred income tax liabilities	143,000	143,000
Other non-current liabilities	1,247,702	1,383,338
Total non-current liabilities	45,735,385	45,807,458
Total liabilities	83,171,123	82,201,764

OWNER'S EQUITY(or SHAREHOLDERS' EQUITY):
Equity	12,251,362	12,251,362
Capital surplus	10,823,906	10,823,906
Less: Treasury shares
Specific reserves
Surplus reserves	1,563,914	1,563,914
General risk provisions
Profit available for appropriation	3,093,555	921,848
Foreign exchange translation reserve	-1,652,103	-1,638,158
Total equities attributable to owners of the Parent Company	26,080,634	23,922,872
Minority interests	39,119	38,571
Total owner' equity	26,119,753	23,961,443
Total liabilities and owner' equity	109,290,876	106,163,207

Items	Balance at the end of the period	Balance at the beginning of the year

CURRENT LIABILITIES:
Short-term borrowings	9,966,398	8,565,294
Held-for-trading financial liabilities	1,298,141	2,274,627
Bills payable		160,000
Accounts payable	8,701,255	8,471,873
Receipts in advance	33,848	34,300
Salaries and wages payable	346,530	284,397
Taxes payable	633,206	644,591
Interests payable	177,183	301,950
Dividend payable
Other payables	1,791,192	1,978,628
Non-current liabilities due within a year	12,379,730	11,002,982
Other current liabilities
Total current liabilities	35,327,483	33,718,642

NON-CURRENT LIABILITIES:
Long-term borrowings	17,554,309	17,125,849
Debentures payable	9,000,000	9,000,000
Long-term payables	16,009,376	16,440,104
Specific payables
Estimated liabilities	94,438	94,438
Deferred income tax liabilities	143,000	143,000
Other non-current liabilities	1,237,991	1,377,482
Total non-current liabilities	44,039,114	44,180,873
Total liabilities	79,366,597	77,899,515

OWNER'S EQUITY (or SHAREHOLDER'S EQUITY):
Equity	12,251,362	12,251,362
Capital surplus	14,332,112	14,332,112
Less: Treasury shares
Specific reserves
Surplus reserves	1,554,324	1,554,324
General risk provisions
Profit available for appropriation	-325,631	-1,906,333
Total shareholders' equity	27,812,167	26,231,465
Total liabilities and shareholders' equity	107,178,764	104,130,980