Sustainability and ESG Report 2025

Air China Ld

27 April 2026

 

 

Air China Limited

2025 Sustainability and ESG Report

About this Report

This annual report comprehensively demonstrates the significant achievements made by Air China Limited in 2025 in implementing the strategic deployments of the CPC Central Committee, thoroughly carrying out the spirit of the 20th National Congress of the Communist Party of China and its subsequent plenary sessions, and strictly executing the social responsibility work requirements issued by the State-owned Assets Supervision and Administration Commission of the State Council. The report highlights the Company's commitment and concrete actions in fulfilling its responsibilities across multiple dimensions while leveraging its core advantages in aviation operations. These include aligning with national strategies, ensuring safe operations, addressing climate change, promoting green and low-carbon transformation, enhancing product responsibility, safeguarding customer privacy, fostering employee development, and participating in community philanthropy.

 

Time Period

The reporting period spans from 1 January 2025 to 31 December 2025.

 

Report Scope

This report primarily focuses on Air China Limited, but also includes its branches, operating units, supporting units, and major subsidiaries, including Aircraft Maintenance and Engineering Corporation (Ameco), Shenzhen Airlines Co., Ltd. (Shenzhen Airlines), Shandong Aviation Group Co., Ltd. (Shandong Aviation Group), Beijing Airlines Co., Ltd. (Beijing Airlines), Dalian Airlines Co., Ltd. (Dalian Airlines), and Air China Inner Mongolia Co., Ltd. (Air China Inner Mongolia).

 

Basis of Preparation

This report has been prepared in accordance with the State-owned Assets Supervision and Administration Commission of the State Council's Guidance on Central Enterprises Fulfilling Social Responsibilities to a High Standard in the New Era, the Research on the Compilation of ESG Special Reports for Central Enterprise-Controlled Listed Companies, the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (Trial), as well as the Hong Kong Exchanges and Clearing Limited Listing Rules and Appendix C2 "Environmental, Social and Governance Reporting Code". It has also been compiled by reference to the Global Reporting Initiative (GRI) "GRI Sustainability Reporting Standards" (GRI Standards), GB/T 36001 Guidelines for Compiling Social Responsibility Reports, and supplementary guidelines specific to the aviation service industry.

 

Publication Cycle

This report is an annual report and the eighteenth consecutive sustainability report published by Air China Limited. The Chinese version of the report is published in March for the preceding year, and the English version is published in April.

 

Source of Data

The financial data cited in this report is derived from the audited annual report of Air China Limited, which complies with the Accounting Standards for Business Enterprises of the People's Republic of China. Other data originates from internal formal documents and relevant statistics of Air China Limited.

 

Explanation of References

For ease of reference, "the Company", "Air China" or "we" refer to Air China Limited, while "the Group" refers to Air China Limited and its holding subsidiaries; and "CNAHC" refers to China National Aviation Holding Corporation Limited.

 

Reporting Principles

Quantification Principles: The Company establishes standardised ESG indicator management tools covering the corporate's operating units, supporting units, branches, and major subsidiaries to conduct regular statistical analysis and disclosure of all quantifiable key disclosure indicators within the "Environmental" and "Social" categories as stipulated in the reporting guidelines. The quantified data regarding the "environmental" scope within this report is accompanied by descriptions of calculation methodologies and cited standards; please refer to the relevant chapters of this report for further details.

Principle of Consistency: There has been no material adjustment to the scope of disclosure in this report compared with previous reports, and consistent disclosure and statistical methods have been employed.

Materiality Principle: In the preparation of this report, a materiality assessment procedure is conducted to determine the disclosure content and the level of detail for each topic.

Principle of Balance: This report objectively discloses the Company's positive achievements and improvement in ESG initiatives, ensuring the completeness and balance of information presentation.

 

Obtaining the Report

This report is issued in both Chinese and English. In the event of any discrepancy between the two versions, the Chinese text shall prevail. You may download the English and Chinese electronic versions of this report from the Air China website. If you require a hard copy of the report, or have any suggestions or feedback regarding this report, please contact us via the following channels:

Website: www.airchina.com.cn

Address: No. 30 Tianzhu Road, Konggang Industrial Zone, Shunyi District, Beijing, People's Republic of China

Contact Unit: Office of the Board

Tel: +86‑10‑61462152

Email: [e-mail]

 

Message from the Chairman

2025 marks the concluding year of the 14th Five‑Year Plan and the year for planning and laying out the 15th Five‑Year Plan. The Group adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, deeply comprehends the spirit of the 20th National Congress of the Communist Party of China and all plenary sessions, resolutely implements the decisions and deployments of the CPC Central Committee and the State Council, firmly grasps its responsibilities as a national flag carrier enterprise, coordinates efforts in key areas including safety production, passenger services, low-carbon transition, serving national strategies, and Party building. Positive results have been achieved across all work, marking a successful conclusion to the 14th Five‑Year Plan.

Adhering to safety first, and the safety situation remains stable. The Group has always taken General Secretary Xi Jinping's important expositions on work safety and the spirit of his instructions on civil aviation as the fundamental guideline. It has firmly taken ensuring safety as its primary political task and top priority, taking concrete actions to ensure "Two Absolute Safeties". A total of 3.0133 million safe flight hours were achieved throughout the year, representing a year-on-year increase of 2.1%. All critical tasks, including the Shanghai Cooperation Organization Summit, the Asian Winter Games, the World Games, and earthquake relief operations in Myanmar, were successfully completed, thereby demonstrating the responsibility of a central state-owned enterprise.

Adhering to a people-centric approach, the quality and efficiency of services continue to improve. The Group adheres to a customer-centric approach and comprehensively advances the transformation of customer service by focusing on the "4C-based" service objectives: Credibility, Convenience, Comfort, and Choice. We continuously build the "Aviation+" ecosystem, launch cross-sector products across diverse scenarios, and introduce intelligent systems such as the "Air China Cabin 360-Degree Panoramic View" and "Smart Cabin" to optimize the passenger service experience. In 2025, the membership base of the Phoenix Miles frequent flyer programme exceeded 100 million, with passenger satisfaction reaching 88.1 points. We optimized the refined control of flight operations, the on-time performance rate reached 91.8%, representing a year-on-year increase of 3.7%, and the flight execution rate stood at 99.2%, effectively enhancing operational efficiency.

Advancing the low-carbon transition and implementing the construction of ecological civilization. The Group has deeply implemented the concept of ecological civilization, formulated a special action plan for carbon peaking, and actively worked to achieve the "carbon peaking and carbon neutrality" goals. In addressing climate change, the Group participated in domestic pilot programmes for the application of Sustainable Aviation Fuel (SAF), cumulatively utilizing 1,501 tonnes of SAF, and completed the first green electricity transaction during the year. In terms of environmental management, full coverage of ISO 14001 system certification is maintained, achieving a 100% replacement rate for ground power and an electrification rate exceeding 90% for newly introduced vehicles. In promoting resource recycling, a comprehensive initiative to reduce plastic usage and waste on flights has been implemented, achieving 100% biodegradability for all onboard cutlery. Furthermore, the Group has actively participated in the Yangtze River ecological protection project to foster the coordinated development of resource circulation and ecological conservation.

Serving the national strategy and fulfilling the responsibilities of a central enterprise. The Group is fully committed to serving high-level opening-up. In 2025, Air China opened or resumed 12 international routes, with its route network covering six continents. It actively supports the implementation of the Belt and Road Initiative, operating 74 routes under this initiative covering 32 countries. Full support was given to the development of domestic civil aircraft. Thirty-five COMAC C909 aircraft and nine COMAC C919 aircraft were introduced and operated safely, and deep involvement was maintained in the research and development of the COMAC C929 model. In relation to rural revitalization, the "5+N" key assistance projects were implemented with precision. A total of 18 projects were undertaken, with funds amounting to RMB 46.62 million invested. For eight consecutive years, the highest rating of "Good" was achieved in the performance assessment of fixed-point assistance work carried out by central enterprises. Concurrently, the Group has actively engaged in the governance of international organizations such as the Star Alliance and the International Air Transport Association (IATA), expanded in-depth cooperation with carriers including Lufthansa and Emirates, successfully facilitated the inclusion of the Renminbi as a settlement currency within IATA, and its industry influence continuing to strengthen.

Strengthening Party building leadership to enhance the effectiveness of corporate governance. The Group adheres to the principle of "Two Consistencies" and continuously improves the integration of Party leadership into corporate governance. Efforts were made to achieve a deep integration of Party building with production and business operations. A series of thematic promotional activities titled "Air China C919: A Glorious Journey of China's Aviation Takeoff" was solemnly held, resulting in a significant enhancement of ideological leadership. We strictly implement the "First Topic" system, consolidate and deepen the results of rectification from central inspections, thoroughly implement the spirit of the Central Eight-Point Regulation on Improving Work Style, promote the normalization and long-term effectiveness of work style construction, advance the integrated development of deterrence, institutional constraints, and ideological education against corruption, continuously consolidate a sound political ecology characterized by integrity and fairness, and provide strong support for building a world-class enterprise.

2026 marks the opening year of the 15th Five‑Year Plan and a critical juncture for building on past achievements while forging ahead. The Group shall comprehensively advance the initiatives of "enhancing quality, improving efficiency, and adjusting structure", accelerate the transition from a quantity- and scale-driven model to one focused on quality and efficiency, achieve effective qualitative improvement alongside rational quantitative growth, and substantially strengthen core functions while elevating core competitiveness. Upholding integrity and fostering innovation, and engaging in pragmatic work, the Group will strive with determination and courage on the new journey of building a world-class enterprise, thereby contributing greater strength to Chinese-style modernization.

Liu Tiexiang

Chairman

Air China Limited

 

Board ESG Statement

In 2025, the Board of Directors of Air China, as the highest body responsible for environmental, social and governance (ESG) matters, continues to deeply integrate the concept of sustainable development into the deliberation and decision-making of major matters. The Board of Directors receives regular reports from management on ESG performance through periodic meetings, supervises ESG-related issues that may impact the Company's operations and the interests of shareholders and other stakeholders, and ensures that the ESG strategy is closely aligned with the Company's overall development. Meanwhile, the Board is responsible for approving the outcomes of stakeholder engagement on material issues and deliberation conclusions, as well as for the final review of the Company's Annual Sustainability and ESG Report.

In accordance with the development requirements for central enterprise listed companies issued by relevant national regulatory authorities and regulations such as the Shanghai Stock Exchange's Guidelines on Self-Regulatory Management for Listed Companies No. 14 - Sustainability Reporting (Trial), the Company continues to refine its ESG governance mechanisms, actively constructs a systematic and scientific ESG management framework, comprehensively enhances its professional ESG governance and risk management capabilities, promoting the coordinated development of economic, environmental, and social benefits. The Board has incorporated significant ESG risks into the Company's overall risk management framework and has formulated corresponding response strategies regarding the likelihood of risks, their impact magnitude, and evolution trends. The Board regularly assesses the progress of ESG objectives and issues specific requirements and recommendations for areas requiring improvement. The Social Responsibility Leadership Group, established under the Board of Directors, is responsible for formulating and reviewing the Company's ESG strategy, objectives, and annual implementation plans, and for reporting thereon to the Board of Directors. The Leading Group Office is specifically responsible for promoting the implementation and execution of relevant work.

This report systematically presents the Company's practices and performance in the field of ESG for 2025. It was reviewed and approved by the Board of Directors in March 2026.

 

About Air China

1. Overview of the Company

Air China Limited was established in 1988, originally known as Air China International Corporation. In October 2002, Air China International Corporation merged the air transportation resources of China Southwest Airlines and China National Aviation Company, forming a new entity. On September 30, 2004, Air China Limited was founded in Beijing. The company was then listed on both the Hong Kong and London Stock Exchanges on December 15 of the same year, followed by its listing on the domestic A-shares market on August 18, 2006.

Air China is the sole civil aviation carrier in China authorised to carry the national flag and a member of Star Alliance, the world's largest airline alliance. It serves as the official air passenger transport partner for both the 2008 Beijing Olympic and Paralympic Games and the 2022 Beijing Winter Olympic and Paralympic Games. Air China holds a leading position domestically in air passenger transport and related services, while simultaneously undertaking critical flight support missions, including VIP charters, emergency relief flights, and flights accommodating visits by foreign heads of state.

2. Fleet Structure

As at the end of 2025, the Group's fleet comprised 964 aircraft with an average age of 10.36 years.

Aircraft type	Model	Quantity
Airbus	A320	369
	A330	50
	A350	30
Boeing	B737	417
	B747	9
	B777	28
	B787	14
COMAC	C909	35
	C919	9
Business jets		3
Total		964

 

Structure of Air China Limited

Branches

Southwest Branch

Zhejiang Branch

Chongqing Branch

Tianjin Branch

Shanghai Branch

Hubei Branch

Xinjiang Branch

Guangdong Branch

Guizhou Branch

Tibet Branch

Wenzhou Branch

Business Management Units

Operation Control Centre

Flight Crew Department

Commercial Committee

Ground Service Department

Cabin Service Department

Training & Development Department

Logistics & Support Department / Retiree Service Office / Leading Group Office of Epidemic Prevention & Control

Information Management Department

Air Marshal Department

Centralized Procurement Department

Hub Development Department

Engineering Maintenance Department

Digital Transformation Office

Customer Service Centre

Management Support Division

Administration Office/Policy Research Office

Strategy and Development Department / Leading Group Office for Comprehensively Deepening Reforms

Human Resources Department

Finance Department

Safety Supervision Department

Flight Technology Management Department

Assets Management Department

Operation Standards Department

Brand and Quality Management Department

Stations Management Department

Legal Department

Audit Department

Aviation Security Department

Office of the Board

Party Affairs Department / Corporate Culture Department / Office of the Party Committee's Anti-Corruption Leading Group

Discipline Inspection Office

Labor Union Office

Key Subsidiary Companies

Aircraft Maintenance and Engineering Corporation

Shenzhen Airlines Company Limited

Shandong Aviation Group Company Limited

Beijing Airlines Co., Ltd.

Dalian Airlines Co., Ltd.

Air China Inner Mongolia Co., Ltd.

Air Macau Company Limited

China National Aviation Finance Co., Ltd.

Beijing Golden Phoenix Human Resources Co., Ltd.

Air China Shantou Industrial Development Company

3. Route Network

In 2025, Air China operated a total of 131 international and regional passenger routes and 394 domestic passenger routes, connecting 46 countries and regions.

4. Concept of Responsibility

Vision:

A leading airline in the world

Mission:

Putting safety at the forefront

Delivering 4C-based services

Achieving steady growth

Helping our employees pursue a successful career

Fulfilling our responsibilities

Values:

People orientation

Assumption of responsibility

Resolve to get ahead

Loving to fly

Brand Positioning:

A professional, trusted airline with world-class standards and a unique Chinese flair

5. The 14th Five‑Year Plan

Advancing high-quality development, and accelerating the construction of a world-class aviation enterprise

Hub network strategy	Continuously enhanced political capability	Promoting safety management and construction to a new height
Passenger and cargo linkage strategy	Stable profitability	Gaining a new advantage in the optimization of market layout
Cost advantage strategy	Large-scale production organization capability	Presenting a new look at the structural adjustment of resources
Brand building strategy	Standardized basic management capability	Reaching a new level of upgraded products and services
	Value-driven brand capability	Achieving a breakthrough in aviation cargo logistics development
		Entering a new stage of innovation-driven digital development
		Demonstrating new achievements in green and low-carbon development
		Making new progress in integrated industrial development

Table: Main Development Goals of the 14th Five‑Year Plan

Passenger throughput: 167 million passengers

Customer Satisfaction: 83.5 points

The annual incidents rate of air transportation per 10,000 flight hours<0.11.

Table: Key Tasks During the 14th Five-Year Plan Period

Continuous Innovation

·      At the end of 2021, Ameco was granted the first domestic Supplemental Type Certificate (STC) by the Civil Aviation Administration of China for an independent and controllable Ka-band satellite communication system retrofit scheme on the Airbus A321.

·      Since 2022, the installation structures and cable assemblies compatible with the COMAC C909 have been delivered sequentially.

·      By the end of 2024, the domestic installation of a domestically developed phased array Ka-band satellite communication system on B737-800 aircraft was successfully achieved for the first time in China, and airworthiness certificate was granted by the Civil Aviation Administration of China.

Green Aviation

·      During the 14th Five‑Year Plan period, the cumulative usage of sustainable aviation fuel exceeded 10,000 tonnes.

·      In 2025, the substitution of ground power units (GPU) for auxiliary power units (APU) was continued to reduce fuel consumption during aircraft ground parking phases. A cumulative fuel saving of 170,000 tonnes was achieved, with a GPU substitution utilisation rate reaching 100%.

·      By 2025, the electrification of vehicles was promoted, achieving an electrification rate of 43% for the vehicle fleet. The electrification rate for newly introduced vehicles exceeded 90%.

·      During the 14th Five‑Year Plan period, comprehensive plastic reduction and waste minimisation were achieved in-flight and on the ground. All onboard cutlery and similar products were replaced with biodegradable materials (100%). The "Green Flight" sustainable travel product was launched. Over 30,000 passengers voluntarily participated in carbon offsetting, resulting in a total carbon offset exceeding 6,400 tonnes.

·      During the 14th Five‑Year Plan period, ecological protection projects were implemented in four regions: Sichuan, Hubei, Shanghai, and Chongqing.

·      In 2024, Air China Century Building was awarded Platinum certification, the highest level under the LEED Green Building Certification System.

Digital Empowerment

·      Global Ground Flight Support Platform, which integrates flight production command, ground resource allocation and information dissemination, effectively enhances operational efficiency and decision-making capabilities in the ground support domain.

·      Operational monitoring platform. A closed-loop management system encompassing release monitoring, dynamic monitoring, and the handling of in-flight special incidents has been established, serving as the "smart hub" for Air China to ensure flight safety and enhance operational efficiency.

·      Phase II of the Business Model Innovation Project. By innovating the aviation and travel business model, integrating e-commerce platform resources, optimising business processes, and enhancing service quality to expand the scale of e-commerce sales, Air China is driven to achieve digital transformation from a single-service provider to an integrated aviation and travel service provider.

 

Safety Operation

·      In 2025, safe flight hours amounted to 3.0133 million, and passenger traffic reached 161 million.

·      In 2025, accountable incidents rate of air transportation per 10,000 flight hours was 0.01, and performance throughout the 14th Five‑Year Plan period consistently exceeded targets.

Coordinated Development

·      In the passenger transport sector, Air China and Shenzhen Airlines have achieved deep integration. Their route networks offer complementary advantages, marketing organisations have been optimised and integrated, and regional resources are shared in a concentrated manner. Consequently, the synergistic scale effects and agglomeration effects of the Group have been realised.

·      Within the industrial sector, aircraft maintenance adheres to the "one site, one team" principle, continuously promoting the integration of airline resources and mutual entrustment of business.

·      In terms of support assurance, the comprehensive coverage and continuous deepening of procurement management have been achieved. The procurement management platform has been launched and further rolled out to Shenzhen Airlines and Shandong Aviation Group. Meanwhile, the integrated development of crew housing facilities continues to advance, resulting in a further improvement in resource utilisation.

Hub Development

·      A foundational layout has been established, characterized by "four core bases", six major axes ensuring seamless connectivity, and multiple hubs providing support and integration. This layout features Beijing as the central hub, radiating globally; coordinates the dual-hub connection between the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area to bolster the development of leading economic zones; expands westward from Chengdu and Chongqing to open up a new gateway to Asia and Europe; and leverages Xinjiang as a pivotal point to link the Belt and Road air corridor, thereby injecting momentum into the national regional development strategy.

Deepening Service Delivery

·      Adhering to a customer-centric approach, we continuously enhance service quality and the passenger experience, ensuring that "Express Lines" faster, "The First Flight" worried-free, "Air-Rail Intermodal Transport" more convenient, and "Aviation+" services more considerate. In 2025, passenger satisfaction scored 88.1 points, exceeding the target during the 14th Five‑Year Plan period.

·      Deepening the implementation of brand-led initiatives to establish a centrally managed and synergistically coordinated brand management system, thereby broadening brand dissemination, enhancing marketing efficiency, and increasing global recognition of the Air China brand.

Cost Reduction and Efficiency Enhancement

·      Continuously optimising production organisation and fully utilising available aircraft resources to ensure effective deployment.

·      Dynamically monitoring market trends and scientifically balancing the relationship between volume and price to stabilise the quality of returns.

·      Comprehensively strengthening cost control and the awareness of "diligence and frugality" to reduce cost levels.

·      Full efforts were made to promote production, strengthen operations, and ensure stable growth. Overall operating performance exhibited characteristics of increased investment and revenue, and reduced cost, thereby consolidating the trend of continuously improving operational quality.

 

2025 ESG Core Performance

Key Performance Indicators	2023	2024	2025
ASK (100 million)	2,925.13	3,561.04	3,676.41
RPK (100 million)	2,141.73	2,843.50	3,010.16
ATK (100 million)	360.02	447.26	460.61
RTK (100 million)	218.87	297.43	315.69
Passengers Carried (10,000)	12,545.45	15,531.55	16,059.65
Cargo and Mail Carried (10,000 tonnes)	107.04	148.01	153.79
Safe Flight Hours (10,000 hours)	252.95	295.09	301.33
Accountable Incidents Rate of Air Transportation Per 10,000 Flight Hours	0.007	0	0.01
Flight On-time Performance (CAAC statistical basis) (%)	87.94	88.07	91.78
Number of Aircraft (unit)	905	930	964
Total Assets (RMB 100 million)	3,353.03	3,457.69	3,430.47
Year-end Market Value (RMB billion)	105.916	122.452	148.703
Fuel Consumption Per Tonne-km (kg/tonne-km)	0.336	0.301	0.289
Total Energy Consumption (10,000 tonnes of standard coal)	1,060.80	1,298.10	1,324.80
Environmental Protection Investment (RMB 100 million)	3.85	5.42	6.89

 

Honours and Awards

Award Name	Awarding Body
Best Case Award for ESG Education and Training at the 2nd Sino- European Corporate ESG Best Practice Conference	Chinese Consulate-General in Frankfurt
Awarded an MSCI ESG Rating of A	Morgan Stanley Capital International
2025 Best Practice Cases for Listed Company Boards of Directors	China Association for Public Companies
Grade A for the 2024-2025 Information Disclosure Assessment	Shanghai Stock Exchange
Listed Company Golden Award - Golden Information Disclosure Award	China Securities Journal
2025 National Civil Aviation "Blue Sky Award"	Civil Aviation Administration of China
The projects titled "Research and Application of Key Technologies for Digital Intelligence Management of Civil Aviation Flight Safety Operations" and "Global Ground Flight Support Platform" were awarded the First Prize in Science and Technology	China Communications and Transportation Association
Shenzhen Airlines and Chengdu Falcon Aircraft Engineering Service Co., Ltd. were awarded the Technical Breakthrough Award at the 8th China Aviation Maintenance Red Crown Awards for "PSU (Passenger Service Unit) PMA Project"	MRO China Industry Development Conference
"Domestic Revenue Management System","Quick Access Recorder(QAR) Big Data Empowering Digital Transformation in Aviation Safety Management" were selected for the Practical Case of state-owned enterprise intelligent decision-making Case Collection at the 8th China Enterprise Forum (2025)	China Enterprise Forum
The "Breeze" Youth Volunteer Association of the Ground Services Department was recognised as the Capital's Best Voluntary Service Organisation	Organising Committee for the Publicity Campaign on 100 Typical Advanced Models of Capital Volunteer Service of 4 types
The crew of the evacuation charter flight from Lebanon was awarded the honorary title of "2025 China May 4th Youth Medal Collective"	Central Committee of Communist Youth League of China All-China Youth Federation
The Office of the Leading Group for Targeted Assistance was awarded the honorary title of Advanced Collective in Stationed Assistance for Rural Revitalisation	People's Government of Guangxi Zhuang Autonomous Region
The "CNAHC Blue Sky Classroom" educational assistance project was selected as the Best Poverty Reduction Case in the "6th Global Poverty Reduction Case Collection Activity"	International Poverty Reduction Center in China
The industrial assistance project titled "China's Wings: Empowering the Revitalisation and Transformation of a Single Leaf" was selected as a typical case in the targeted poverty alleviation work of central enterprises	State-owned Assets Supervision and Administration Commission of the State Council
The targeted poverty alleviation work has consistently achieved the highest rating of "Good" in the performance assessment of targeted poverty alleviation work carried out by central enterprises for eight consecutive years	-

 

Alignment with the United Nations 2030 Sustainable Development Goals (SDGs)

SDGs	Our Actions for 2025	SDGs	Our Actions for 2025
SDG 1: NO POVERTY SDG 2: ZERO HUNGER	Relevant Content: Adhering fundamentally to the important speeches and instructions of General Secretary Xi Jinping on "agriculture, rural areas and farmers" ("Three Rural Policies") and rural revitalisation, thoroughly implementing the spirit of the 20th National Congress of the Communist Party of China and all subsequent plenary sessions of the 20th Central Committee, focusing on the needs of the assisted regions, leveraging inherent strengths, and advancing rural revitalisation through multiple measures to assist local areas in consolidating and expanding the achievements in poverty alleviation. Corresponding Chapter: Rural Revitalisation	SDG 3: GOOD HEALTH AND WELL-BEING	Relevant Content: Adhering strictly to the bottom line of employee health protection; continuously strengthening the comprehensive construction of the employee health and safety system; and establishing a safety barrier for employees. Corresponding Chapter: Safeguarding Employee Safety
SDG 4: QUALITY EDUCATION	Relevant Content: Establishing a systematic training framework centred on employee career development by providing targeted learning resources to support simultaneous advancement in academic qualifications and skills, thereby fostering the mutual growth of talent and the organisation. Corresponding Chapter: Employee Training and Development	SDG 5: GENDER EQUALITY	Relevant Content: Forced labour and child labour are strictly prohibited; discrimination, harassment, and bullying are rigorously prevented to safeguard employee rights and foster a workplace environment characterised by fairness, respect, and inclusivity. Corresponding Chapter: Employee Rights and Communication
SDG 6: CLEAN WATER AND SANITATION	Relevant Content: Promoting the conservation and efficient recycling of water resources, while continuously researching, developing, and applying water-saving technologies and environmentally friendly processes. In daily operations, the water conservation management system is strictly enforced. Comprehensive and multi-stage water-saving measures are implemented to systematically enhance the efficiency of water resource utilisation. Corresponding Chapter: Sustainable Energy and Resource Utilisation	SDG 7: AFFORDABLE AND CLEAN ENERGY	Relevant Content: The Company is actively implementing measures for energy conservation and emission reduction alongside resource recycling. It is also proactively exploring the application of sustainable aviation fuel to establish a modern airline that is green and low-carbon. Through optimising resource allocation and technological innovation, the Company aims to achieve efficient and sustainable utilisation of resources. Corresponding Chapter: Sustainable Energy and Resource Utilisation
SDG 8: DECENT WORK AND ECONOMIC GROWTH	Relevant Content: Continuously refining the remuneration performance and benefits system to provide competitive compensation and security for employees. Through a rich array of employee activities and a positive working environment, employees' enthusiasm and creativity are fully stimulated. Corresponding Chapter: Employee Incentives and Wellbeing	SDG 9: INDUSTRY, INNOVATION AND INFRASTRUCTURE	Relevant Content: Deepening industry-specific expertise and fostering collaborative development, we leverage resource sharing and technical exchange as key connectors to strengthen cooperation between upstream and downstream segments of the supply chain. This approach aims to co-create a mutually beneficial and win-win ecosystem, thereby facilitating an overall leap forward for the aviation sector. Corresponding Chapter:Promoting Industry Co-development
SDG 10: REDUCED INEQUALITIES	Relevant Content: Committed to promoting educational equity by dismantling barriers to development between urban and rural areas, thereby ensuring that all individuals enjoy equal opportunities for education and development rights. Corresponding Chapter: Rural Revitalisation	SDG 11: SUSTAINABLE CITIES AND COMMUNITIES	Relevant Content: We are committed to building a green and intelligent air transport system, promoting the application of clean energy sources such as Sustainable Aviation Fuel (SAF), assisting in the construction of a more environmentally friendly and efficient urban transport network, and fostering sustainable community development and connectivity. Corresponding Chapter: Sustainable Energy and Resource Utilisation
SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION	Relevant Content: Quality service management and customer experience enhancement are established as the core pathways to drive quality enhancement, with service standards and customer feedback integrated throughout the entire operational process. In 2025, the China Quality Certification Centre conducted audits on 10 units within the Company's service quality management system to verify the conformity and effectiveness of the system's operation. Corresponding Chapter: Quality Service Management	SDG 13: CLIMATE ACTION	Relevant Content: Continuously strengthening climate governance capabilities, actively responding to the national strategic goals of "carbon peaking and carbon neutrality", comprehensively integrating climate change response into corporate strategic planning, risk management and daily operations, and contributing the enterprise's strength to global climate governance with practical actions. Corresponding Chapter: Addressing Climate Change
SDG 14: LIFE BELOW WATER	Relevant Content: By systematically reducing the discharge of sewage and waste, and controlling pollutant generation at the source, the direct load on aquatic ecosystems is effectively alleviated, thereby enhancing the overall efficacy of water environment protection. Corresponding Chapter: Environmental Management and Ecological Protection, Pollution Prevention and Control	SDG 15: LIFE ON LAND	Relevant Content: Biodiversity monitoring and thematic promotional activities are actively conducted for the public. Green travel services are promoted, low-carbon transport modes are advocated, and through a series of public welfare initiatives, the public is guided to participate in ecological protection efforts to jointly safeguard the natural home. Corresponding Chapter: Environmental Management and Ecological Protection
SDG 16: PEACE, JUSTICE AND STRONG INSTITUTIONS	Relevant Content: Establishing a corporate governance and risk management system with clearly defined responsibilities and authorities. By strengthening the functions of the board of directors, perfecting internal control and compliance mechanisms, and fostering an integrity culture, we aim to build a fair and responsible supply chain. We are committed to maintaining a just business environment and constructing a robust, transparent, and accountable corporate entity. Corresponding Chapter: Sustainable Development Management	SDG 17: PARTNERSHIPS FOR THE GOALS	Relevant Content: Actively integrating into the national "Belt and Road" Initiative, continuously expanding the route network along the corridor, establishing an air bridge for connectivity, deepening economic and trade cooperation as well as cultural exchange, and demonstrating responsibility and commitment. Corresponding Chapter: Overseas Social Responsibility

1. Sustainability Management

Air China has a profound understanding of the requirements for high-quality development in the new era. It has comprehensively integrated the concept of sustainable development into its corporate strategy and daily operations, thereby establishing a systematic, comprehensive, and effectively functioning ESG governance framework. We remain committed to building on robust systems, driving innovation, and forging collaborative partnerships. We continue to deepen risk management and compliance operations, working hand in hand with supply chain partners and all stakeholders to advance the aviation industry toward a safer, lower-carbon, and more inclusive future. In doing so, we contribute Air China's strength to building a Beautiful China and strive to write a new chapter in civil aviation development as part of the national strategy to build a leading transport power.

1.1 ESG Governance

Air China is committed to integrating ESG principles into its corporate governance and strategic development. It has established an ESG governance framework with clearly defined responsibilities and effective operations. Through multi-level communication mechanisms, it maintains engagement with all stakeholders and conducts double materiality assessments to identify material issues, ensuring that ESG management is embedded in daily operations and long-term strategy.

1.1.1 Governance Structure

Air China strictly adheres to regulatory requirements, establishes a comprehensive ESG governance framework, and advances the implementation of ESG initiatives. The duties of ESG management and supervision are clearly stipulated in the Rules of Procedure for the Board's Strategy and Investment Committee. Through regular discussions and decision-making on key issues, the Board has normalized the performance of its ESG oversight responsibilities. The Company has established a dedicated body for social responsibility (ESG) work. In accordance with the Implementation Measures of CNAHC on High-Standard Fulfilment of Social Responsibilities in the New Era, key tasks have been further clarified to lay a solid foundation for the effective implementation of relevant work.

Table: Social Responsibility (ESG) Governance Framework

Management hierarchy	Key Functions	Work Performance
Board of Directors	The Board of Directors serves as the highest authority responsible for ESG matters, integrating the concept of sustainable development into the deliberation and decision-making processes for significant issues.	•Comprehensively supervised and approved short‑, medium‑ and long‑term ESG plans, formulated and implemented relevant ESG policies. • Reviewed the Company's performance and progress toward targets on key ESG issues for 2025, including aviation safety and risk management, and approved the 2024 Sustainability and ESG Report.
Audit and Risk Control Committee (Supervision Committee)	• Convened 9 meetings.Oversaw internal controls, risk management (including ESG and climate-related risks), and audit work.
Strategic and Investment Committee	• Convened 4 meetings. Deliberated and deployed the Company's strategy, reviewed major investment matters including aircraft acquisition and capital increases in Air Macau and Shenzhen Airlines, and received a presentation on ESG.
Remuneration and Assessment Committee	• Convened 5 meetings.Deliberated on assessment and remuneration schemes related to the Company's and its management's performance.
Nomination Committee	• Convened 3 meetings. Focused on the nomination and qualification review of directors and senior management.
Aviation Safety Committee	• Convened 2 meetings.Conducted special supervision on the implementation of aviation safety policies and responsibilities.
Social Responsibility Leadership Group	Chaired by the Chairman of the Board, the group is responsible for formulating and reviewing the Company's corporate social responsibility (ESG) strategy, objectives, and annual work plan, and reporting implementation results to the Board.	• Formulated the 2025 Key Points for Social Responsibility Work, and assigned major tasks to responsible departments. • Compiled the 2024 Sustainability and ESG Report and submitted it to the Board for review and approval before public disclosure. • Organized ESG‑specific training, conducted double materiality topic identification, and carried out benchmarking review against industry best‑practice reports. • Strengthened communication with stock exchanges and industry associations, actively participated in external ESG exchanges, expanded ESG report distribution channels, and enhanced stakeholder engagement.
Office of the Social Responsibility Leading Group	Composed of various functional departments, responsible for implementing the social responsibility (ESG) work plan in accordance with the Company's ESG management system, overall planning, and task objectives.

1.1.2 Communication with Stakeholders

Air China attaches great importance to communication with all stakeholders. By continuously optimizing diverse communication channels, it actively responds to stakeholders' opinions and suggestions, discloses information in a timely and compliant manner, and fulfils the right to information of all parties.

1.1.2.1 Information Disclosure

Air China strictly complies with the Listing Rules to ensure that all information which may have a material impact on the share price is disclosed in a true, accurate, complete and timely manner, thereby safeguarding fair access to information for all investors. In 2025, we successfully completed the disclosure of periodic reports and various interim documents across the Shanghai, Hong Kong, and London Stock Exchanges, receiving high recognition from regulators and the market.

As of the end of 2025, we issued 63 domestic interim announcements, 86 overseas interim announcements, and 2 circulars for listed companies.

1.1.2.2 Investor Relations

Performance Announcement and Communication

• Following the release of periodic performance reports, annual, half‑yearly, and quarterly earnings conferences and webcast briefings were promptly held to respond to inquiries from domestic and overseas investors, consolidating the Company's capital market image.

Capital Market Tracking

• Established a daily market sentiment monitoring mechanism to produce daily and weekly monitoring reports, closely tracking share price movements, analyst reports, and media coverage.

• Promptly collected and analyzed market feedback and public opinion after the release of financial results and material announcements.

Investor Engagement

• Organized 2024 annual results and H1 2025 results roadshows in Hong Kong and Shanghai, conducting in‑depth communications with 26 key institutional investors.

• Actively participated in investment summits and strategy conferences, maintaining close contact with institutional investors, and joining nearly 50 investment events throughout the year.

• Communicated with sell‑side analysts on the Company's development strategy and operations. In 2025, nearly 30 research reports covering the Company were published in the market.

Case: Hosting the "'Air China+' Ecosystem Thematic Launch Conference"

On 5 December 2025, Air China held the "'Air China+' Ecosystem Thematic Launch Conference" in Beijing. With the theme of building an open and collaborative aviation service ecosystem, the Company systematically demonstrated its cross‑sector integration achievements in technology, mobility, and culture. Highlights included launching "Phoenix Miles" digital assets, announcing "Aviation + Automotive" partnerships with FAW‑Volkswagen and Li Auto, and collaborating with CCTV and Luckin Coffee to create integrated cultural experiences. The conference effectively promoted "Aviation Miles" as the core link connecting benefits across multiple scenarios, enhanced member value and brand influence, and laid a solid foundation for Air China to build an ecosystem featuring complementary resources and co‑created value.

1.1.2.3 Response to Stakeholders

Based on a comprehensive review of its own characteristics and changes in the external environment, Air China has identified key issues and actively responded to the needs of all parties.

Stakeholders	Communication channels	Expectations and appeals	Response from Air China
Government / domestic and overseas regulators	• Work meetings and briefings • Information disclosure • Government cooperation • Release of blue books	• Integrity, compliance and orderly operation • Support for major national events • Zero safety accidents • Good corporate image • Energy conservation, emission reduction and environmental protection	• Participated in policy planning, research and formulation • Abided by regulatory requirements • Accepted supervision and assessment • Participated in specialized training
Shareholders	• Information disclosure • General Meetings of Shareholders • Investor briefings • Company official website	• Standardized corporate governance • Protection of investor/shareholder interests • Sustainable development capability	• Improved corporate governance and internal control systems • Enhanced investor relations management • Strengthened core competitiveness • Released regular performance announcements
Customers	• Customer satisfaction surveys • Complaint handling • New media platforms	• Flight safety and punctuality • Comprehensive high‑quality services • Personal privacy protection	• Built branded lounges • Implemented food safety management certification • Provided intelligent services • Improved flight disruption information release • Protected passenger information
Employees	• Employee satisfaction surveys • Internal BBS, magazines, emails, WeChat • Employee congresses • Trade union activities • Team building	• Protection of rights and interests • Understanding of corporate strategy • Participation in management • Clear career paths • Competitive compensation and benefits	• Established multi‑level talent development and learning channels • Improved staff service center operations • Provided psychological counseling • Launched model and craftsman innovation studios • Organized cultural and sports activities and skill contests • Assisted employees in need
Partners / Suppliers	• Financial, insurance, procurement and other businesses • Daily business interactions • Partner meetings	• Honest and standardized operation • Strong solvency • Lower operational risks • Transparent procurement • Mutual development	• Strengthened communication and cooperation • Enhanced supplier management • Revised and improved procurement policies • Improved suppliers' environmental awareness and capacity
Peers	• Industry forums • Industry conferences	• Focus on industry development trends • Maintain fair and orderly market order	• Strengthened alliance cooperation • Conducted industrial collaboration • Signed memorandums of understanding
Community	• Public welfare and charity activities • Volunteer services	• Promote local economic growth • Support public welfare causes	• Advanced rural revitalization • Engaged in charity activities • Completed major transportation support tasks
Media	• Press releases • Media interviews and visits • Official new media	• Respond to corporate developments • Enhance public image and influence • Disclose future plans	• Published Sustainability reports and regular performance reports • Updated developments via Weibo, WeChat and TikTok • Organized open days and product launch events

1.1.3 Determination of Double Materiality Issues

In 2025, Air China conducted a double materiality assessment of ESG topics. It systematically identified and evaluated ESG‑related topics from two dimensions:Impact materiality, the significance of topics to the economy, society and the environment; Financial materiality, their financial significance to the Company's operations and performance. Drawing on the historical materiality matrix, internal management practices, and key stakeholder concerns, we updated the list of sustainability topics. Impact materiality was assessed based on risk exposure and the Company's adaptive capacity. Financial materiality was determined by evaluating potential risks, opportunities and impacts on revenue, costs, assets and valuation, resulting in a final double materiality matrix.

In 2025, Air China identified 17 key material topics. Among these, "Addressing Climate Change and Carbon Reduction", "Aviation Safety", "Information Security and Privacy Protection", and "Sustainable Utilization of Energy and Resources" are classified as topics with high financial materiality¹. These topics are addressed in detail in the report's chapters on Safety Management, Low‑Carbon Development, and Quality Service using the "Four‑Pillar"² disclosure approach.

Impact Materiality		Quality Service Management	Addressing Climate Change and Carbon Reduction Aviation Safety
	Sustainability Management Innovation in Products and Services Risk Management and Internal Control Compliance	Promoting Industry Advancement and Fulfilling Overseas Responsibilities Pollution Prevention and Waste Management Rural revitalization and Social Responsibility	Information Security and Privacy Protection Sustainable Utilization of Energy and Resources
		Environmental Management and Biodiversity Conservation Sustainable Value Chain Communication with employees and Protection of employees' rights and interests Employee care, Remuneration, and Benefits Employee training and development Business Ethics
Financial Materiality

¹Given the substantive alignment between Sustainable Utilization of Energy and Resources and Addressing Climate Change and Carbon Reduction in the dimensions of Governance, Strategy, and Targets, these topics are disclosed under a unified framework to prevent redundancy. The Four-Pillar framework for this topic is consolidated under the Addressing Climate Change and Carbon Reduction disclosures.

²Four Pillars: Governance - Strategy - Management of Impacts, Risks and Opportunities - Indicators and Targets.

1.2 Corporate Governance

Air China complies with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and regulatory requirements from state‑owned assets supervision and securities authorities. It has thoroughly implemented the "Two Consistencies" and continuously optimized a corporate governance mechanism featuring clearly defined powers and responsibilities, transparent authority and accountability, coordinated operation, and effective checks and balances, thereby transforming institutional advantages into competitive and developmental advantages for high‑quality growth.

1.2.1 Party Building Leadership

Air China adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implements the spirit of the 20th National Congress of the Communist Party of China and all plenary sessions of the 20th CPC Central Committee, fulfills the general requirements for Party building in the new era, and uses high‑quality Party building to lead and ensure the Company's high‑quality development.

In 2025, the Standing Committee of the Party Committee held 42 meetings and conducted pre-review discussions on 49 major matters.

• Strengthening political construction: Improved the "First Item" system, enhanced work mechanisms, and ensured thorough implementation of General Secretary Xi Jinping's important instructions. Uphold Party leadership within corporate governance, strengthened the substantive review role of the Party Committee, optimized decision‑making procedures for major operational matters, revised rules of procedure and agenda lists, and improved governance efficiency. Progressed with central inspection rectification and conducted "look‑back" reviews. The Company received an "A" grade in the central SOE Party building responsibility system assessment for six consecutive years.

• Strengthening ideological construction: Deepened basic training for grassroots Party organizations to ensure the Party's innovative theories reach frontline operations and every Party member.

• Strengthening organizational construction: Focused on grassroots development, enhanced the political and organizational functions of primary‑level Party organizations, and deepened integration of Party building and business operations.

• Adhering to the Party's management of cadres and talent: Strengthened the cadre team, improved personnel selection and appointment, and provided talent support for building a world‑class enterprise.

• Conducting united front work: Organized annual united front thematic activities to encourage non‑Party personnel to contribute to high‑quality development and enhance unity and cohesion.

Case: In‑depth Study and Education on Strict Implementation of the Central Eight‑point Regulation

Air China's Party Committee thoroughly studied General Secretary Xi Jinping's important expositions on work style improvement and relevant speeches, earnestly implemented the deployment of the SASAC Party Committee, and took educational learning as a key annual Party building task. By adhering to target requirements and consolidating responsibilities step by step, it integrated learning, research and rectification. This ensured that Party organizations at all levels and the majority of Party members and cadres consistently implemented the Central Eight‑point Regulation, providing a strong guarantee for high‑quality development and accelerating the building of a world‑class enterprise.

Case: Rotational Training Course for Secretaries of Grassroots Party Organizations

In June 2025, Air China held three consecutive training courses for grassroots Party branch secretaries under the theme "Strengthening Grassroots Work and Enhancing the Political and Organizational Functions of Grassroots Party Organizations". The training covered nearly 1,700 Party branch secretaries and key grassroots Party affairs personnel across the Company. The program strengthened theoretical grounding in the Party's innovative theories, enhanced the political and organizational functions of primary‑level Party organizations, and provided solid political, ideological and organizational guarantees for high‑quality development and building a world‑class enterprise.

1.2.2 Board of Directors

Board Diversity and Specialization

Air China continues to maintain a diversified board structure. On 25 February 2025, the election of the Seventh Board of Directors was completed. The Board comprises 9 members, including 4 independent directors and 1 female director, further enhancing governance effectiveness. The new Board features optimized structure and diverse professional backgrounds, including civil aviation operation, management, central SOE leadership, finance, audit and law, with an international perspective, ensuring complementarity of expertise.

Specialized committees are strengthened. The Audit and Risk Control Committee (Supervisory Committee) and Remuneration and Assessment Committee consist entirely of independent directors, who also serve as chairpersons. Independent directors form a majority in the Strategy and Investment Committee and Nomination Committee. This structure enhances independence and professionalism, supports scientific decision‑making, safeguards overall corporate interests, and protects the legitimate rights and interests of minority shareholders.

Table: Members of the Seventh Board of Directors

No.	Name	Gender	Age	Position	Type of Expert
1	Liu Tiexiang	Male	59	Chairman, Executive Director, Party Secretary	Industry Expert
2	Qu Guangji	Male	55	Deputy Chairman, Executive Director, President, Deputy Party Secretary	Industry Expert
3	Cui Xiaofeng	Male	56	Non‑executive Director, Deputy Party Secretary	Industry Expert
4	Patrick Healy	Male	60	Non‑executive Director	Industry Expert
5	Xiao Peng	Male	60	Employee Director	Industry Expert
6	Xu Niansha	Male	68	Independent Non‑executive Director	Management & Operations Expert
7	He Yun	Male	64	Independent Non‑executive Director	Audit Expert
8	Winnie Tam Wan-chi	Female	64	Independent Non‑executive Director	Legal Expert
9	Gao Chunlei	Male	59	Independent Non‑executive Director	Financial Expert

Performance of Duties by the Board

The Board exercises powers in strict accordance with laws, regulations and the Articles of Association, effectively fulfilling strategy‑formulation, decision‑making and risk‑mitigation responsibilities. It is accountable to the general meeting of shareholders and supervises management. The Board continued to optimize scientific decision‑making, strengthened ad‑hoc proposal management, and improved work planning and standardization. It strictly implemented the advance notification system for major decisions to external directors, fully solicited professional opinions, and organized on‑site research to ensure rigorous decision‑making. It also strengthened closed‑loop management of resolutions and authorization through feedback notices and progress reports. In 2025, the Board held 12 meetings, reviewed and approved 73 proposals, and held 6 separate meetings for independent directors.

Directors' Remuneration

In accordance with regulatory requirements, Air China has established policies including the Measures for the Assessment of Operating Performance and Remuneration of Executive Members and the Measures for Company Operating Performance Assessment. Remuneration for directors and senior management is linked to performance. ESG indicators related to aviation safety, energy conservation and environmental protection, and employee development have been incorporated into the assessment framework. Total remuneration paid to directors and senior management during the reporting period includes pre‑tax salaries and employer contributions to social insurance, housing fund and enterprise annuity. Pre‑tax salary includes actual 2025 remuneration and 2024 annual salary settlement. The Company fully implemented ESG‑related performance assessment for enterprise leaders, with results linked to annual performance remuneration. Independent director remuneration follows relevant national policies.

Board of Directors of Subsidiary Enterprises

Air China has established and implemented a classified approval management mechanism for proposals submitted to the "Three Meetings" of invested enterprises, improving refined management and decision‑making efficiency. It continued to standardize the operation of subsidiary boards, ensuring eligible boards are established with clear powers and responsibilities. It prioritized the development of external director teams, dynamically adjusted external directors in invested enterprises, and conducted specialized training in 2025 to enhance performance capabilities. It guided subsidiaries to implement supervisory board reforms and, where conditions permitted, establish and standardize specialized board committees.

1.2.3 Management

As the executive body of corporate operations, the management team organizes the implementation of Board resolutions and regularly reports progress. The Company has improved institutional documents including the List of Authority and Responsibilities for Major Matters and the Rules of Procedure for the Management Layer, further clarifying powers and responsibilities, streamlining processes, and ensuring lawful, standardized and efficient performance. In 2025, the President's Office Meeting was held 24 times, deliberating on 63 agenda items.

1.2.4 General Meetings of Shareholders

The General Meeting of Shareholders is the highest authority of the Company. It deliberates and resolves major matters including election and replacement of directors, review of the Board report, profit distribution, capital increase or reduction, amendment of the Articles of Association, and bond issuance, safeguarding the interests of all shareholders. Four general meetings were held in 2025. Resolutions were passed to amend the Articles of Association, the Rules of Procedure for General Meetings and Board Meetings, and to elect Liu Tiexiang as Executive Director.

1.3 Risk Management and Internal Control Compliance

Air China continues to deepen its risk control and compliance system, comprehensively strengthening safe operations and operational risk management. Through a "four‑in‑one" collaborative mechanism integrating legal affairs, risk, internal control and compliance, it implements full‑chain risk prevention and control, continuously improves risk mitigation capabilities, and strengthens internal control and compliance management, providing a solid guarantee for building a world‑class enterprise.

1.3.1 Risk Management System

Air China operates a risk management system featuring unified leadership and divided responsibilities. The Party Committee exercises overall leadership over risk management. The Board is accountable to investors for the effectiveness of the comprehensive risk management system. The management team organizes risk management implementation under Board authorization. The Audit and Risk Control Committee (Supervisory Committee) guides, supervises and evaluates risk management activities. The Legal Matters Leading Group improves risk mechanisms and coordinates resources to prevent major risks. The Legal Department acts as the Risk Management Office, responsible for daily organization, coordination and supervision. Each business unit is accountable for risk management in its area. Together, business departments, functional support departments, and the audit department form the "Three Lines of Defense" for comprehensive risk management.

"Three Lines of Defense" for Comprehensive Risk Management
Discipline Inspection and Comprehensive Supervision	Board of Directors/Audit and Risk Control Committee (Supervision Committee)					Discipline Inspection and Comprehensive Supervision
	Senior Management/Legal Matters Leading Group				Third Line of Defense
	First Line of Defense		Second Line of Defense
	Business Activity	Internal Control Processes, Risk Assessment, Control Measures	Financial Control, Safety Supervision, Quality Control, Legal Management	Risk Management, Compliance Management, Internal Control Management	Internal Audit
	Business Departments As the first line of defense for corporate risks, business departments are responsible for the effective identification and control of risks, and bear the main responsibility for risks during business and operation processes.		Support Departments Support departments like Legal, Compliance, Financial, Quality, Safety, and Human Resources serve as the second line of defense to provide risk management and control policies, methodologies, and tools, and organize risk monitoring and internal control compliance management.		Assurance Departments As the third line of defense, the Internal Audit Department conducts an independent assessment of Air China's risk management and control results and performs risk assessment and supervision responsibilities.

1.3.2 Risk Identification and Prevention

Air China has formulated the Implementation Rules for Risk Assessment and Reporting, establishing a risk framework with 9 primary risk categories and more than 100 secondary risks tailored to actual operations. An annual major operational risk forecast and assessment exercise is conducted. Using checklists, questionnaires, data analysis and due diligence, the Company identifies, analyzes and evaluates risks in market, safety, finance, legal compliance and public health, pinpoints key risk areas, and formulates proactive response measures.

Nine Primary Risk Categories

• Strategic Risk

• Safety Risk

• Integrity Risk

• Public Opinion Risk

• Legal Risk

• Market Risk

• Operational Risk

• Financial Risk

• Investment Risk

1.3.3 Risk Tracking and Reporting

Air China strengthened forward‑looking research on risks related to the economic environment, market conditions, industrial policies and industry trends. Based on 2025 operational risk forecasts, it refined 26 risk monitoring and early warning indicators using qualitative and quantitative methods, formulated targeted prevention and control measures, and assigned responsible departments and personnel to ensure implementation. Effective monitoring and closed‑loop management are achieved through a major operational risk control ledger.

The Company established risk level standards and an event reporting mechanism to enable daily operational risk reporting. Any employee who identifies a risk must report and escalate it level by level. Risk owners regularly monitor assigned risks and report results to risk supervisors as required.

1.3.4 Internal Control and Compliance

Air China continued to improve its internal control and compliance system by strengthening institutional development, optimizing operating mechanisms, and fostering a rule‑of‑law culture, systematically enhancing compliant operation and management.

In accordance with the Measures for the Administration of Compliance of Central Enterprises, the Company established a "2+N" compliance framework centered on the Compliance Management Regulations and Code of Compliance Conduct, with specialized rules for high‑risk areas including anti‑monopoly, data protection and export control. It consolidated internal control management, improved regulations and implementation, developed a standardized and closed‑loop internal control manual, conducted walkthrough tests in key areas, and implemented penetrating supervision over small, marginal, scattered or remote units. It integrated internal control and compliance in key areas to build a comprehensive and restrictive system. Internal control training was organized to improve standardization, staff awareness and risk resistance.

The Company also strengthened the rule of law for international business, improved foreign‑related regulations, issued multilingual codes of conduct, conducted overseas regulatory training, organized emergency drills for overseas entities responding to government investigations, improved full‑process legal participation in major foreign projects, and studied international compliance rules to support safe global operations.

2025 Legal and Compliance Training

• Continued the "Compliance Promotion Month" campaign, organized company‑wide compliance commitment signing, showcased exemplary practices, and collected "Compliance Stories Around Me". Published multilingual compliance codes to foster a compliance culture.

• Carried out Constitutional Publicity Week activities, organized legal knowledge quizzes, held online seminars on air passenger transport legal issues, and published legal education articles.

• Conducted specialized training in anti‑monopoly, anti‑unfair competition and anti‑commercial bribery.

• Held 10 legal and compliance micro‑courses and published 75 legal education articles throughout the year.

 

1.3.5 Audit Supervision

Air China has established a three‑tier internal audit system. In 2025, it formulated the Information Systems Audit Manual and Special Audit Manual, bringing the total number of audit regulations to 72. During the year, the Company conducted 121 audit projects covering economic responsibility audits, special audits, engineering audits and internal control evaluations. These efforts promoted standardized power operation, improved systems, plugged management loopholes, enhanced quality and efficiency, and supported stable and sustainable development.

Air China's Three‑Tier Internal Audit System

First‑tier rules: Internal Audit Work Regulations of Air China Limited

Second‑tier rules: Economic Responsibility Audit Regulations, Internal Control Evaluation Management Measures, etc.

Third‑tier rules: Audit Rectification Tracking Management Measures, Internal Audit Work Manual, etc.

1.4 Business Ethics

Air China regards business ethics as the cornerstone of its operations, having established an anti‑corruption and compliance management system. It continuously fosters a culture of integrity, maintains a zero‑tolerance stance toward violations, and cultivates a business environment featuring fair competition and law‑abiding operations.

1.4.1 Management System

Air China deepened the development of anti‑corruption mechanisms, strengthened integrity risk prevention and control, and consolidated a sound political ecology. It improved institutions for full and strict Party governance and anti‑corruption work. In accordance with the Action Plan for Improving the Comprehensive and Strict Governance System of CNAHC (2024-2026), it revised the Rules for Work of the Party Committee Inspection Teams and inspection procedures to promote a strong supervision system.

The Company strictly complies with the Supervision Law, the Anti‑Money Laundering Law, the Anti‑Monopoly Law and the Anti‑Unfair Competition Law. It has established documents including the Compilation of Dynamic Cases on Global Aviation Anti‑Monopoly, the Anti‑Bribery Compliance Manual and the Data Compliance Manual for Various Jurisdictions. It maintains zero tolerance for bribery, corruption, fraud, money laundering and unfair competition. No litigation cases related to corruption, bribery, fraud or money laundering occurred in 2025.

1.4.2 Construction of Integrity Culture

Air China attached great importance to integrity culture, formulated the 2025 Integrity Education Work Plan, and issued four issues of the Integrity Education Work Dynamic List. It enhanced employee discipline awareness through warning education meetings and typical case compilations. It launched a series of activities, implementing tiered and classified warning education. Integrity training and anti‑commercial bribery micro‑courses were organized, covering more than 6,000 participants. Online training on the Anti‑Unfair Competition Law was also conducted to improve compliance capabilities.

Anti‑corruption training performance

In 2025, 6,571 warning education activities were held with 265,000 participants. Coverage for directors, management and employees reached 100%.

Case: Series of Integrity Culture Warning and Educational Activities

In 2025, Air China continued to strengthen integrity culture through year‑round stratified warning education. In April, an internal warning education program was broadcast to all Party members and cadres. In June, a compilation of typical cases violating the Central Eight‑point Regulation was issued for company‑wide reflection. In November, M4 level and above cadres attended a special warning education session. Using real cases, the activities guided employees to learn lessons, clarify discipline rules, strengthened discipline awareness, enhanced the effectiveness of "promoting governance through cases", and consolidated the ideological defense against corruption.

1.4.3 Whistleblowing Management

Air China strictly abides by regulations on accusation and complaint handling and whistleblower protection. It formulated the Implementation Rules for the Handling of Letters and Visits by Discipline Inspection and Supervision Institutions (for Trial Implementation) and established a multi‑dimensional reporting channel covering letters, telephone and online platforms. The Company maintains zero tolerance for retaliation and firmly protects whistleblowers' legitimate rights and interests.

Whistleblower Protection Measures

• Strict confidentiality of whistleblower identity and report content.

• Prohibition of transferring or disclosing complaint materials or whistleblower identity to the subject of the report.

• Conducting investigations without disclosing the complainant's identity.

• Obtaining prior consent before publicizing meritorious whistleblowers' personal information.

1.5 Sustainable Value Chain

Air China has fully integrated ESG principles into its supply chain management system. Through strict supplier qualification and performance evaluation mechanisms, it promotes integrity and fair cooperation, working with partners to advance high‑quality and sustainable industrial development.

1.5.1 Supply Chain Management

Air China is committed to building a stable, reliable and responsible supply chain. It has established the Supplier Management Regulations and, relying on the CNAHC Procurement Management Platform, implements full‑cycle refined supplier management covering access, classification, grading, performance evaluation, risk monitoring and exit. Clear exit mechanisms and risk‑based classified control are applied to continuously optimize the supplier structure and build a long‑term, stable, responsible and mutually beneficial supply chain ecosystem.

Table: Supplier Management Process

• Admission: Suppliers complete a social compliance self‑assessment covering environmental protection, occupational health and safety, anti‑child labor, anti‑forced labor and non‑discrimination, which serves as a key audit basis. Comprehensive multi‑dimensional audits are conducted on operational compliance, qualifications, service capability, business ethics and ESG performance.

• Assessment: Annual performance evaluation is supplemented by daily management, with comprehensive assessment based on basic conditions, cost, innovation, satisfaction, quality, supply assurance, service, delivery, safety and environmental protection.

• Classification and Graded Management: Suppliers are divided into five levels - strategic, preferred, qualified, restricted and eliminated - based on overall performance and risk profile, and published on the procurement platform.

• Exit: Poorly performing, low‑quality or integrity‑violating suppliers are delisted to optimize the supplier pool.

Key Performance Indicators

As of 31 December 2025:

• Domestic aircraft suppliers: 9; overseas aircraft suppliers: 5

• Domestic procurement suppliers: 11,739; overseas procurement suppliers: 1,129

Case: Upgrade of Procurement Management Platform and Digital Intelligent Applications

In 2025, Air China further digitalized its supply chain. The procurement management platform has been deployed across Air China, Shenzhen Airlines, Shandong Airlines and Ameco, forming a unified foundation for procurement systems. The Company explored AI applications, formulated implementation plans for intelligent document preparation, and developed an intelligent early warning subsystem to strengthen digital supervision and risk control. It steadily promoted data interoperability between the procurement platform and finance, legal and discipline inspection systems, building a collaborative, efficient, transparent and intelligent digital supply chain system.

1.5.2 Integrity Procurement

Air China fully integrated integrity controls into supplier access and evaluation. All suppliers must sign a Supplier Anti‑Bribery Commitment Letter during qualification review before proceeding to subsequent processes, establishing a strong integrity barrier at the source. The Company issued the Guidelines for the Management of Restricted Suppliers, implementing classified management for suppliers involved in commercial bribery and other negative conduct to reduce procurement risks and enhance supply chain stability and security.

1.5.3 Equal Treatment of Small and Medium‑Sized Enterprises

Air China resolutely implemented national policies on clearing arrears to enterprises. It incorporated the principles of "pay all that is payable" and "pay promptly what is payable" into management systems, improved internal processes, and strengthened assessment constraints to effectively protect the legitimate rights and interests of SMEs. No overdue payments to SMEs occurred in 2025.

1.6 Technological Innovation

Air China drives development through innovation by formulating a technological innovation plan, clarifying key research directions, jointly overcoming core technologies, co‑building innovation platforms, improving innovation mechanisms, and effectively enhancing independent innovation capabilities and industrial competitiveness.

1.6.1 Science and Technology Innovation Management

Air China adheres to an innovation‑driven development strategy, guiding technological breakthroughs and industrial upgrading through systematic planning. It formulated the Draft for Comments on the 15th Five‑Year Plan for Scientific and Technological Innovation and Strategic Emerging Industries, clarifying core technology directions and key industrial layout for the next five years. In 2025, it continued to advance the reform of the science and technology system, established a scientific research management system, and planned to revise innovation regulations to improve the full‑chain innovation mechanism covering strategic planning, funding support and project management.

At the end of 2025:

• R&D expenditure: RMB 664 million, accounting for 0.39% of operating revenue

• R&D personnel: 3,145, accounting for 2.92% of total employees

Building Innovation Consortium

• Established a strategic partnership with COMAC and formed a joint design working group for the COMAC C929 wide‑body aircraft, creating a new "market + technology" collaborative innovation model.

• Co‑founded a joint laboratory with Xiamen University to expand industry‑academia‑research cooperation.

Optimizing Innovation Systems

• Launched the development of a scientific research management system, systematically improved innovation management documents, and promoted centralized project approval and special inspections of innovation laboratories targeted for completion by 2025.

Case: "Best Exhibition Award" at the Civil Aviation Science and Technology Innovation Achievement Exhibition

In May 2025, Air China participated in the Third Civil Aviation Science and Technology Innovation Achievement Exhibition in Beijing under the theme "Intelligence Initiates a New Journey, Creativity Knows No Boundaries". It set up six exhibition zones with interactive demonstrations of AI, VR and other cutting‑edge technologies, showcasing nearly 30 independent innovation achievements including domestic civil aircraft support equipment, air‑ground connectivity, smart logistics and end‑to‑end passenger services. The booth won the "Best Exhibition Award".

Case: Artificial Intelligence Innovation Application Competition

In June 2025, CNAHC launched the Artificial Intelligence Innovation Application Competition, attracting 239 teams from 63 top universities and research institutes (including Tsinghua and Peking University) and 37 CNAHC‑affiliated units. After rigorous review, a number of high‑commercial‑value projects were identified, laying a foundation for technology application and business enablement.

Case: "Maker Camp" Training Programme

In October 2025, Air China organized 35 outstanding participants from the innovation competition and key young innovation talents to join CNAHC's "Maker Camp" training. Combining instruction, workshops and project incubation, the program systematically enhanced innovative thinking and practical capabilities, securing key talent for sustainable corporate innovation and cultural vitality.

1.6.2 Protection of Intellectual Property Rights

Air China strictly complies with the Patent Law, Copyright Law, Trademark Law and other relevant laws. It revised the Intellectual Property Management Measures and issued the Patent Intellectual Property Protection Guidelines and Software Intellectual Property Protection Guidelines to strengthen IP protection for innovative achievements.

By the end of 2025, Air China owned:

• Over 310 patents

• 2,775 registered trademarks (domestic and international)

• 15 copyrights

1.6.3 Ethics of Technology

During the reporting period, the Company did not conduct scientific research or technological development in ethics‑sensitive fields such as life sciences or general artificial intelligence. Accordingly, no separate disclosure on technology ethics management is required.

1.7 Digitalisation

Air China continued to advance the conclusion of its 14th Five‑Year digital transformation and the strategic planning for the 15th Five‑Year period. Guided by value creation, it focused on digitalisation in three core business areas: safe operations, marketing services, and management synergy. It promoted data governance, built intensive and shared IT infrastructure, and fully unleashed digital empowerment for sustainable development.

Table: Achievements of Digitalisation

Digitalisation for Safe Operation: Fortifying Safety and Efficiency

• Advanced the digital aviation safety management platform and strengthened risk prevention and control.

• Established a digital dispatch release system to enable human‑machine collaborative dispatch.

• Built a "Smart Flight" portal to improve the efficiency of the full flight crew task chain.

• Launched the Smart Engineer Platform, leveraging large language models for professional translation and constructing a maintenance knowledge graph to improve maintenance efficiency.

Intelligent Marketing Services: Enhancing Quality and Passenger Experience

• Completed Phase II of the business model innovation system, establishing Air China's new retail framework. Upgraded the official website, restructured call center capabilities, enriched product portfolios, supported data‑driven precision marketing, and improved passenger experience.

• Deployed an AI‑powered customer service assistant with approximately 90% application accuracy, significantly enhancing response capacity.

Integrated Management Synergy: Empowering Modern Governance

• Strengthened overall coordination and promoted the construction of group‑level platforms such as the CNAHC financial shared service center to enhance value integration.

• Achieved a full score in the SASAC digital state‑owned assets supervision review. Continued to upgrade supervision systems to meet regulatory requirements.

Infrastructure Intensification: Consolidating the Digital Foundation

• Continued to build a unified "One Cloud" to support system cloud migration and efficient resource utilization.

• Established a unified, independent and controllable AI+ technology foundation to enable intensive sharing of AI resources and cross‑domain applications.

2. Safety Operations

Air China firmly upholds the people-centred development philosophy, fully recognises the special mission of the national flag carrier, coordinates safety management, consolidates achievements in safe development, firmly safeguards the bottom line of safe development, and ensures the absolute safety of people's lives and property.

2.1 Aviation Safety

2.1.1 Governance

Air China has strictly implemented the overall concept of national security and the political requirements of "two absolute safety". It consistently adheres to the work policy of "safety first, prevention foremost, and comprehensive management", established a sound safety management structure, continuously deepened the construction of the safety operation system and the long-term mechanism for professional conduct of safety practitioners, refined the functional positioning and institutional responsibilities of safety supervision, improved the overall "comprehensive safety" framework, and effectively transformed the sense of responsibility of "constant concern" into the capability of "absolute certainty in every matter".

Table: Air China Safety Management Organizational Structure

Level	Key Responsibilities
Safety Committee	• Highest decision-making body for corporate safety management• Defines safety responsibilities of management and employees • Guides and approves safety plans and measures, ensures human and financial resources • Regularly reviews management reports and monitors SMS effectiveness • Meets at least once per month to assess safety status, deliberate major work safety issues, and report to the Employee Representative Congress and shareholders' meeting
Office of the Safety Committee	• Organises Safety Committee meetings and drafts relevant documents • Collects aviation safety information, analyses safety performance, and submits regular reports • Researches and coordinates approved matters and puts forward suggestions • Communicates requirements and supervises the implementation of decisions • Promotes safety exchanges and coordinates cross-departmental safety work
Chief Security Officer	• Independent from operation and management • Assists the primary person-in-charge in safety supervision • Conducts operational status research, safety forecasting, improvement planning, and safety performance management • Provides recommendations on work safety management
Safety Management Department	• Organises and implements the company's safety management work • Each production and operation unit establishes its own safety department to implement on-site safety management and conduct work-style construction under the guidance of the head office

Table: Air China Safety System

Module	Key Initiatives
Safety Management System Construction	• Formulated Measures for the Administration of Accountability for Safety Production Incidents, clarifying scenarios, standards and procedures for accountability with strict penalties for violations • Promoted Phase II of the QAR Big Data(QBD) System, piloted across Shenzhen Airlines, Shandong Airlines, Beijing Airlines, Dalian Airlines and Air China Inner Mongolia; won First Prize in Science and Technology from the China Communications and Transportation Association in 2025 • Participated in formulating the industry Guidelines for Determining General Incidents for Transport Airlines to unify Class I / II incident classification criteria • Adopted CAAC's green QAR management concept, revised flight data analysis procedures, and built a precise data model • Air China's safety management case was selected into CAAC's Compilation of Advanced Practices in Safety Management Systems
Flight Training System	• Strengthened flight instructor and examiner team management, standardised key position technical review processes; established CBTA (Competency-Based Training and Assessment) system for A320 in 2025 • Issued working mechanisms and inspection procedures of the Flight Technology Review Committee to upgrade technical supervision• Completed revision of recurrent training syllabi, compilation of initial and type-conversion syllabi; achieved full coverage of CRM training • Issued Training Department Cooperation Flight School Safety and Quality Assessment Measures, finalised quality control guidelines, completed 2025 graded evaluation of 10 flight schools and issued assessment reports • Revised and issued the New Pilot Onboarding and Training Curriculum
Aircraft Maintenance System	• Strengthened unified fleet maintenance planning control and advanced the strategy of "unified standards, centralised management, decentralised implementation" • Improved engine flameout prevention mechanism, formulated annual inspection plan, developed "one model per type" control mode, established control schemes for mechanically related unsafe events, and provided targeted support to Shenzhen Airlines' maintenance engineering system • Prepared project initiation report for reliability management system function expansion; obtained regulatory approval to include aircraft health management in the reliability programme • Optimised CQMP for A320S, A330, B737 and other types to enhance fleet technical management quality
Production Operation System	• Revised flight monitoring procedures and special condition support workflows to strictly monitor duty rosters and full flight operation cycles • Updated the Emergency Response Manual based on emergency drills and system construction • Officially launched the Air China Operation Monitoring Platform to enhance flight monitoring, incident handling and information release capabilities • Completed the cross-location dispatcher exchange summary and conducted full-staff performance capability assessment

Air China strictly complies with the Work Safety Law of the People's Republic of China, Civil Aviation Law of the People's Republic of China, Supervision and Management Measures of Work Safety at State-owned Enterprises, Regulations on Civil Aviation Safety Management and relevant laws and regulations in operating jurisdictions, continuously optimising the performance of its safety management system. In 2025, the Company completed the on-site re-audit under IOSA (IATA Operational Safety Audit) - the first audit since IATA implemented the RBI (Risk-Based IOSA) model in 2023 - and achieved excellent results. All findings from previous IOSA audits have been rectified, and the IOSA registration has remained continuously valid.

2.1.2 Strategy

Air China has formulated the 14th Five-Year Plan for the Safety Sector, focusing on six key areas to drive the modernisation and systematic improvement of safety governance capacity:

l  Advancing the flight training system

l  Optimising the aircraft maintenance system

l  Fostering a collaborative work culture and enhancing vocational skills training

l  Implementing the three-year action plan for special safety rectification

l  Refining the safety operation management system

l  Deepening the construction of the safety management system

2.1.3 Management of Impacts, Risks and Opportunities

Air China regards safety as the foundation of its development and actively implements full-process safety risk management. Through risk identification, assessment and control, the company maintains safety risks at an acceptable level to ensure stable operations. Based on business characteristics, internal and external environment and expert opinions, the Company has continuously revised the Risk Management Work Procedures to consolidate the foundation for safe development.

Risk Identification

o  Internationally: Centennial transformation, major-power competition, protectionism and geopolitical conflicts bring uncertainties to the civil aviation supply chain and operational safety.

o  Domestically: Severe weather, bird strikes, lightning, hail, FOD, lithium battery fire/smoke, drones and floating objects pose persistent risks.

Risk Assessment

o  Systematically identifies hazards across the entire aviation operation chain and scientifically evaluates occurrence probability and potential impacts on flight safety, passenger safety and corporate assets.

Risk Management

o  Integrates hazards into the safety management system, formulates and implements mitigation measures, and conducts continuous monitoring and dynamic optimisation to reduce safety risk impacts.

Ensuring Operational Safety

Air China firmly establishes a safe development philosophy, anchors the "Foundation-Strengthening Year" goal, and resolutely implements the three-year action plan for fundamental work safety governance. It strengthens operational control quality and efficiency, integrating all requirements into daily operation and management.

Table: Key Safety Management Priorities for Air China in 2025

Focus Area	Key Actions
Uphold political guidance and coordinated deployment	• Senior leadership conducted safety supervision and research at 33 units including Shenzhen Airlines and the Southwest Branch • Fully completed all central inspection rectification tasks in the safety field with timely closure • Responded to CAAC recommendations and implemented CNAHC's work safety plan using a checklist approach • Revised the overall emergency plan and improved the "comprehensive safety" emergency management system
Uphold process control and risk prevention	• Secured key flight operation nodes; refined thunderstorm and winter operation contingency plans in advance • Completed seasonal schedule change resource preparation and risk prevention measures to ensure stable production organisation • Deepened hidden danger investigation and supervision, carried out summer transport inspections, "Thunder Action" and routine checks with timely rectification • Strengthened dynamic risk assessment and early warning; identified and controlled 1,018 risks, supporting key tasks including Urumqi base relocation and C909 flights to Ulaanbaatar
Persist in addressing root causes and intensive rectification	• Enhanced dangerous goods air transport safety: optimised SMS-DG documents, promoted IT system development, conducted overseas station personnel training, completed full-fleet lithium battery protection equipment deployment, and strengthened emergency response capacity • Improved air defence security: revised the aviation security scheme, promoted unified deployment of air security officers, properly handled 12 flight threat incidents, formulated emergency plans for overseas terrorism and riots, strengthened route security assessment and agreement management, established a professional audit team and conducted systematic security audits • Strengthened fire safety: inspected 457 key premises, rectified over 60 fire hazards, standardised e-bike management, and enhanced micro fire station training • Improved construction safety closed-loop management: optimised responsibility system and duty list, established pre-commissioning safety assessment for major projects, and promoted intelligent construction site monitoring

Air China continued to improve the top-level design of emergency management. In accordance with the Emergency Management Manual, Emergency Response Manual, IOSA and ISAGO audit requirements, it established an institutionalised emergency response framework aligned with international best practices. A special emergency drill team was set up to efficiently complete special inspections and annual drills, consolidating overall emergency response capacity. During the reporting period, 5,848 persons participated in emergency training.

Safeguarding Passenger Safety

Air China is committed to a full-range safety protection system to ensure safe and reassuring travel for every passenger, with rigorous management covering cabin safety, catering safety and ground safety.

Cabin Safety Management

• Compiled the Comprehensive Safety Production Responsibility List for the Cabin Department

• Passed 248 domestic and overseas inspections and the IOSA Cabin Safety Operations Audit

• Identified and dynamically cleared 46 safety hazards

• Enhanced turbulence prevention and cabin door operation risk control; strictly implemented lithium battery incident procedures and properly handled 6 on-board incidents

• Compiled illegal and non-compliant case studies to strengthen bottom-line awareness

• Strengthened air defence tabletop exercises and properly handled 134 in-flight disturbance incidents to maintain cabin order

Ground Safety Management

• Strengthened employee warning education and ground facility inspection & maintenance

• Enhanced BGS ground agent supervision in accordance with regulatory schemes, completed compliance audits and rectified safety issues

• Issued guidelines for unsafe incident investigation and rectification to standardise related work

• Launched "Safety Model Employees" and "Safety Model Supervisors" selection to foster safety culture

• Conducted internal SMS self-audits to promote continuous improvement

Airline Catering Safety Management

• Adopted advanced risk management and food safety systems, implementing whole-chain monitoring from raw material procurement to in-flight distribution

• Continued ISO 9001, FSSC 22000 and HACCP certification audits in 2025 to ensure in-flight meal safety

2.1.4 Indicators and Targets

Air China has set clear safety strategic objectives and continuously monitors their achievement.

Objective	Achievement Status
Preventing major and extremely serious liability accidents in transport aviation	Achieved
Preventing in-flight terrorist incidents such as hijacking and bombing, and serious air defence-related safety incidents	Achieved
Preventing major aviation ground accidents and extremely serious maintenance accidents	Achieved
Transport aviation incident rate per 10,000 flight hours ≤ 0.06; serious incident rate ≤ 0.05	Achieved

Key Safety Performance Indicator 2025

l  Accountable air transport incident rate per 10,000 flight hours: 0.01

 

2.2 Safeguarding Employee Safety

Air China is committed to providing a safe, healthy, comfortable and convenient working environment for employees. The Company strictly complies with the Law on the Prevention and Control of Occupational Diseases, Provisions on the Administration of Occupational Health at Workplaces, relevant circulars of the National Health Commission and other regulatory requirements. It has started compiling internal systems including the Occupational Health Management Manual to improve the occupational health management system and effectively protect employees' life and health rights.

l  Conducted specialised occupational health assessments in key high-hazard posts, systematically investigated risks, and promoted timely rectification. For unavoidable hazards, engineering controls and appropriate PPE were provided, significantly improving occupational health management.

l  Continued to promote intelligent workplace transformation and technological upgrading to reduce risks at source.

l  The Aviation Health Centre led the establishment of an employee health management platform leveraging third-party medical resources, providing personalised whole-process health management services.

Employee Health & Safety KPIs 2025

Indicator	Unit	2025 Result
Investment in employee qualification training	RMB 100 million	2.64
Work-related injury insurance coverage	%	100
Working days lost due to work-related injury	Day	20,197
Work-related deaths	Person	2
Proportion of work-related deaths	%	0.002
Employee health examination coverage	%	100

 

2.3 Building a Safety Culture

Air China integrates safety principles into every employee's daily work. It carries out regular emergency drills, safety training and warning education through comprehensive and diverse safety culture activities covering all staff. It adheres to joint management and work-style refinement, strengthens employees' safety production responsibility and health awareness, and improves emergency response capabilities.

Promotion of Safety Conduct and Education

• Thoroughly implemented education on the spirit of the Central Eight-point Regulation; promoted team-level work-style education and problem identification to bridge the "last mile" of safety culture construction

• Finalised work safety accountability measures to enhance strict governance orientation

• Carried out "Safety Production Month" campaigns through educational films, essay contests, hazard-identification live courses and other channels; awarded "Advanced Unit in Civil Aviation Safety Production Month" by CAAC in 2025

Health Education and Publicity

• Regularly organised health lectures and distributed supporting materials

• Released 59 health information bulletins to disseminate personalised health knowledge

• Launched the "Healthy Weight Management Year" campaign, providing personalised plans based on physical function and body composition analysis to foster sustainable healthy lifestyles

3. Low-Carbon Development

Air China actively responds to the national carbon peaking and carbon neutrality strategy, pays close attention to climate impacts, continuously improves environmental management, strengthens energy and resource management, strictly controls pollutant emissions, actively explores new models of green and low-carbon development, and promotes a synergistic win-win outcome between economic and ecological benefits.

3.1 Addressing Climate Change

To ensure business continuity during the low-carbon transition, Air China proactively addresses the risks and opportunities arising from climate change. Drawing upon policy documents such as the National 14th Five-Year Plan and the China's Policies and Actions for Addressing Climate Change (2024), and referencing international standards including the International Sustainability Standards Board (ISSB) Climate-Related Disclosures Standard (IFRS S2) and the Task Force on Climate-Related Financial Disclosures (TCFD)

framework, the Company has systematically integrated climate change issues into its strategic planning, risk management, and daily operational systems. Through pragmatic actions, it contributes Air China's strength to global efforts in addressing climate change. The Group fully recognizes the potential risks and opportunities brought about by climate change, and actively identifies, assesses and monitors their possible impacts on the business, strategies and financial performance.

3.1.1 Governance

Air China continues to optimize its governance framework for addressing climate change by establishing the Leading Group for Carbon Peaking, Carbon Neutrality and Ecological Environmental Protection and its corresponding executive subgroups, to ensure that all work deployments are seamlessly connected and managed in a closed loop.

Table: Air China's Governance Framework for Climate Change Response

Governance Level	Body	Key Responsibilities
Decision-making Level	Leading Group for Carbon Peaking, Carbon Neutrality and Ecological Environmental Protection	• Chaired by the Chairman and the General Manager, the Group is responsible for the deliberation and decision-making on major matters including climate change response, energy conservation and emission reduction, ecological environmental protection, as well as carbon peaking and carbon neutrality.
Management Level	Office for Carbon Peaking, Carbon Neutrality and Ecological Environmental Protection	• Responsible for establishing and optimizing the management system, formulating work plans and annual schedules for green development, coordinating the management and advancement of key projects, and conducting supervision and inspection on ecological environmental protection. • A summary of the previous year's work and an arrangement of key tasks for the current year are submitted to the Leading Group on a regular annual basis.
Executive Level	Green development management bodies and special working groups of each branch and subsidiary	• Implementation of major tasks and daily work concerning green low-carbon development. • Each special working group submits its work ledger to the leading office on a quarterly basis, and thematic promotion meetings are convened as required by work progress.

Air China has established an assessment system for energy conservation, environmental protection, and carbon peaking and carbon neutrality. In accordance with the Measures for Assessment, Rewards and Punishments for Energy Conservation and Ecological Environmental Protection Work, assessment indicators have been categorized into three types: environmental compliance, implementation of key tasks, and quantitative indicators for energy saving and carbon reduction. These indicators are comprehensively integrated into the organizational performance management systems of all units. The Company effectively monitors the progress of indicator completion through monthly tracking and quarterly reporting, ensuring that management requirements and responsibilities are duly implemented. Concurrently, the Company conducts an advanced selection exercise biennially to continuously strengthen positive incentives and accountability constraints.

3.1.2 Strategy

In accordance with the 14th Five-Year Plan for Green Development of Civil Aviation, Air China has formulated a corresponding green development blueprint to systematically advance the implementation of its low-carbon strategy. In accordance with the Special Action Plan for Carbon Peaking, Air China has initiated actions across six key dimensions: aviation operation fuel efficiency, aviation carbon reduction, ground energy-saving technological upgrades, carbon asset reserves, cutting-edge green technology exploration, and company-wide green practice participation. The Company is committed to establishing itself as a model of an intensive green enterprise, achieving synergistic progress between sustainable development and high-quality operations.

Air China has actively responded to national policies and industry trends by conducting climate change scenario analysis to systematically identify and assess climate-related risks and opportunities across its operations and value chain. In this regard, physical risks are assessed on the basis of a high-emission scenario (SSP5-8.5), whereas transition risks are evaluated with reference to a low-emission scenario (SSP1-2.6). On this basis, in conjunction with the Company's strategic planning, we have formulated contingency plans and action strategies to address climate change risks, focusing on mitigating adverse climate-related impacts and proactively addressing climate challenges with a steady approach.

Table: The 14th Five-Year Plan for Ecological Environmental Protection

l  Proactively Serving the carbon peaking and carbon neutrality Strategy

l  Improving management systems and enhancing management capabilities

l  Strengthening energy management to achieve low-carbon development

l  Intensifying pollution prevention and control, and continuing the Fight to Keep Skies Blue

l  Shaping a green image for the state-owned aviation enterprise and demonstrating its commitment to social responsibility

3.1.3 Risk Management

Air China has established a comprehensive risk management process, fully integrating climate risk identification, assessment and control into the corporate risk management framework. A graded dynamic control mechanism is implemented, and systematic reviews and updates of climate risk status at all levels are conducted on a regular basis.

Table: Climate Change Risk Management Process

Step	Details
Identification of climate risks	In conjunction with national policies, industry characteristics and business models, the physical risks and transition risks faced by the Company at each stage of development are systematically identified.
Climate risk assessment	Scientifically conduct climate risk assessments and thoroughly analyse the probability of occurrence and potential impact magnitude of various risks.
Climate Risk Management	Climate risks are comprehensively integrated into the existing risk management framework, and response measures are formulated and implemented to mitigate the impact of climate-related risks on the Company's operations.

Table: Climate Change Risk Identification Checklist and Mitigation Measures

Taking into account the national carbon neutrality strategic goals and the company's own development plans, in accordance with regulatory requirements and drawing on the practices of peers, we have clearly defined the timeframes of the short term (2026), medium term (2030), and long term (2050), and conducted assessments of climate change risks and opportunities for each of these time periods.

Risk Type	Specific Risks	Time Horizon	Risk Description	Response Measures	Potential financial impact
Physical Risk	Acute risk	Short- to medium-term	• Extreme weather events such as typhoons, torrential rainfall, and floods may precipitate flight delays, diversions, or cancellations, thereby compromising route safety and operational stability while exerting a significant impact on supply chains and passenger and cargo networks. • Extreme weather may damage aircraft and related infrastructure, thereby affecting aircraft performance and flight safety. • Sustained periods of high temperatures increase aircraft fuel consumption and reduce fuel efficiency. • Extreme heat or severe cold may increase health and safety risks for frontline personnel.	• The special emergency response plans for extreme weather conditions, including flood control, typhoon prevention, lightning protection, cold weather defense, and heatstroke prevention, have been updated to enhance emergency response capabilities. • Dynamic optimization of route planning is conducted, real-time monitoring of flight operational status is maintained, assessment and prediction of condition changes are strengthened, effective measures are implemented to control the risk of return flights and diversions, and ground collaborative support is provided. • Advantageous aircraft types are allocated appropriately, and maintenance strategies are optimized in a timely manner to ensure the safe and reliable operation of the fleet.	• Increased operating costs • Reduced revenue
	Chronic risk	Short-, medium-, and long-term	• Climate scenarios, including global warming, rising sea levels, and tidal influences, may result in temporary operational interruptions and increase the frequency, cost, and duration of maintenance activities.	• Established a professional maintenance and troubleshooting team to enhance on-site response and remediation capabilities. • Increased investment in research and development, optimized maintenance processes, improved efficiency and reduced energy consumption.	• Increased aircraft maintenance and operating costs • Reduced revenue
Transition Risk	Policies and Laws & Legal risk	Short- to medium-term	• The continuous improvement of national climate change regulations and policies has led to stricter emission constraints on the aviation sector. This may increase operating costs and alter travel patterns, thereby affecting airlines' revenue and passenger volume forecasts. • Against the backdrop of the carbon peaking and carbon neutrality goals and the development of the national carbon market, if the Company is included in the carbon trading system, it may incur additional costs due to insufficient allowances.	• Established a dynamic regulatory update mechanism, incorporated key provisions into the compliance self-check checklist, and conducted regular compliance assessments. • Systematically mapped out the decarbonization pathway, formulated phased targets and strategies for carbon peaking and carbon neutrality, and regularly disclosed progress. • Closely monitor developments in national and local carbon emission policies, strengthen communication and collaboration with regulatory authorities, and actively provide feedback on industry practices. • Developed carbon trading management strategies, established a carbon price monitoring and early warning mechanism, and promoted the centralized management and optimal allocation of carbon assets. • Organized specialized training on energy conservation and environmental protection, covering the progress and strategies for aviation's carbon peaking and carbon neutrality goals, interpretation of national regulations, and practical case studies.	• Increased operating costs• Increased carbon emission trading costs
	Technology Risk	Short-, medium-, and long-term	• The Company will accelerate the deployment and application of energy-saving and environmental protection technologies and facilities, and increase investment in energy conservation and emission reduction.	• Promote the electrification of airside vehicles, optimize the intelligent resource allocation mechanism, and improve the operational support efficiency of new energy vehicles. • Continuously advance energy conservation and emission reduction practices, refine the existing technical framework, and actively introduce and develop new low-carbon technologies.	• Increased ground handling costs • Increased research and development costs
	Market Risk	Medium- to long-term	• The Civil Aviation 14th Five-Year Plan sets out targets for SAF³ usage; however, the domestic SAF[ SAF: Sustainable Aviation Fuel.] industry chain is still immature, and prices are significantly higher than those of conventional aviation kerosene, creating sustained cost pressure for the Company. • China's civil aviation sector is still in a development phase. While per capita flight numbers are below international levels, there is significant future market demand and growth potential, which will drive continued growth in energy consumption and carbon emissions.	• Continuously expand the application of SAF, collaborate with the Civil Aviation Administration of China (CAAC) and the China Air Transport Association (CATA) to participate in standard-setting initiatives, and work with upstream and downstream industry chains and research institutions to promote the development and application of SAF in the aviation sector. • Focus on the core aviation business, optimize fleet and route alignment, strengthen fuel-saving management, promote the replacement of APU⁴ with ground power units, and systematically reduce carbon emissions.	• Increased fuel costs
	Reputational risk	Medium- to long-term	• Against the backdrop of growing global attention to climate change, the aviation industry's low-carbon emission reduction efforts have attracted widespread attention from all sectors. Inadequate progress in these efforts may adversely affect the Company's public image and revenue.	• Established a regular evaluation and communication mechanism aligned with the preferences and needs of relevant stakeholders. Feedback channels have been set up on public platforms such as the official website and mobile applications to receive opinions and suggestions from all stakeholders.	• Reduced revenue

 ³SAF: Sustainable Aviation Fuel.

 ⁴APU: Auxiliary Power Unit.

 

3.1.4 Indicators and Targets

In alignment with the global temperature control goals of the Paris Agreement and considering its own operational realities, Air China has established scientifically based decarbonization targets. Aligned with the national carbon peaking and carbon neutrality policy and industry requirements, the Green Development and Key Carbon Peaking and Carbon Neutrality Task List and the Special Action Plan for Carbon Peaking were formulated to clarify the implementation pathway for the carbon peaking and carbon neutrality goals. In 2025, the Company's carbon dioxide emissions per revenue tonne-kilometre decreased by 4% year-on-year, successfully meeting the annual emission reduction target.

2025 Greenhouse Gas (GHG) Emissions Performance⁵

Scope of greenhouse gas emissions	Unit	2025
Scope 1	Carbon dioxide emissions (10,000 tonnes)	2,825
Scope 2	Carbon dioxide emissions (10,000 tonnes)	19.4
Total greenhouse gas emissions	Carbon dioxide emissions (10,000 tonnes)	2,844.36
Greenhouse gas emission intensity⁶	Carbon dioxide emission intensity (grams per tonne-kilometre)	909.6

⁵Aviation fuel calculation standards adhere to the Interim Measures for Monitoring, Reporting and Verification of Carbon Dioxide Emissions from Civil Aviation Flight Activities(CAAC Regulation [2018] No. 3). Ground energy calculations utilize data from SASAC's Low-Carbon Environmental Protection Integrated Management System, incorporating the 2023 national grid average emission factor of 0.5306 kg CO₂/kWh issued by the Ministry of Ecology and Environment. Scope 1 covers CO₂ emissions from fossil fuel combustion, while Scope 2 encompasses emissions from electricity and heat consumption. The calculation is based on a geographical benchmark method. During the reporting period, the company has initiated preparations for carbon auditing. However, due to the complexity of its extensive operational systems and data collection/verification processes, Scope 3 data disclosure is anticipated within the next two years.

⁶For the 2025 greenhouse gas emission intensity calculation, total aviation fuel-related carbon emissions will serve as the numerator.

 

3.1.5 Our Actions

Initiative	Key Actions
Fleet Structure Optimization	• Optimize resource structure and allocation. The share of fuel-efficient aircraft in the fleet reached 31%.
Route Network Optimization	• Optimize core resource allocation to accelerate the resumption and launch of international routes, with passenger load factor rising to 69%.
Green Flight Procedure Implementation	• Promote visual approaches, establish fuel-saving cost calculation standards for each aircraft type, and implement single-engine taxiing.
Operational Fuel Efficiency Improvement	• Fuel efficiency is improved through measures including dispatch optimization, flight plan fuel optimization, and landing residual fuel management. • Fuel consumption was reduced by 158,800 tonnes in 2025, resulting in a reduction of 500,300 tonnes of carbon dioxide emissions.
APU Replacement Initiative	• In accordance with the regulatory authority's "full utilization" requirement, the APU replacement rate reached 100%.
Sustainable Aviation Fuel (SAF) Utilization	• Participated in the SAF pilot programme of the Civil Aviation Administration of China (CAAC). • In compliance with the EU ReFuelEU Aviation Regulation, flights departing from the European Union have been blended with Sustainable Aviation Fuel (SAF) at a 2% blending ratio starting from 2025. • Actively assess SAF-related carbon tax policies in Singapore, Canada and other jurisdictions. • Improve internal rules and regulations, establish procurement assurance procedures, strengthen technical verification and aircraft maintenance support capabilities, and conduct in-depth analysis of the impacts of SAF application. • Joined the China Sustainable Aviation Fuel Industry Alliance and the Global Sustainable Transport Innovation Alliance, and participated in SAF technical exchanges. • Collaborated with Airbus China in events such as the China-France Environmental Month, and issued initiatives on the diversification of SAF technology development pathways and the SAF Customer Programme.
Digital and Intelligent Capability Building for Carbon Peaking and Carbon Neutrality	• The dual-carbon smart platform was successfully launched. The platform was selected as an exemplary case of green and low-carbon practices by the State-owned Assets Supervision and Administration Commission (SASAC) in 2025, and was recognized as an outstanding low-carbon technology project in Beijing in 2025, providing replicable and scalable practical experience for carbon management in the aviation industry.
Carbon Market Compliance	• Civil aviation carbon verification was completed in April, and Beijing municipal carbon verification was completed in May. All data were audited by an independent third-party institution. • EU carbon emission compliance obligations were fulfilled in September, and Beijing municipal carbon emission compliance obligations were fulfilled in October.
Professional Talent Team Building	• Dual-carbon courses were incorporated into training programmes for international talent, young cadres, and senior executives. • Organized and implemented annual energy conservation and environmental protection training.
Green and Low-Carbon Technological Innovation	• To advance green aircraft maintenance practices, the application of "Condition-Based Maintenance Items" is being promoted across multiple aircraft types including the A330 and B747, as well as various systems. This initiative aims to improve the reliability and accuracy of performance warnings for existing aircraft types, thereby further reducing maintenance costs.

 

3.2 Sustainable Energy and Resource Utilisation

Air China has deeply integrated the concept of green development into its management and operations. Strictly adhering to the requirements set forth in the Energy Conservation Law of the People's Republic of China, the Administrative Measures for Energy Conservation of Key Energy-Using Units, and the Water Law of the People's Republic of China, Air China focuses on energy conservation, consumption reduction, and efficient resource utilisation. It systematically advances circular economy practices and explores new energy sources, striving to establish itself as a benchmark for resource-efficient aviation. In 2025, Air China invested a total of RMB 594.629 million in energy management and energy conservation initiatives.

Initiative	Key Actions
Intelligent Management	• By introducing intelligent technologies, Air China has upgraded its production support vehicle management model and established an intelligent vehicle control platform to achieve precise scheduling and real-time monitoring, thereby comprehensively improving vehicle operational efficiency. • The Air China Smart Property Operation Platform has been built, integrating eight core applications: "Operations Centre", "Integrated Security", "Smart Fire Safety", "Smart Access Control", "Smart Energy Management", "Service Reporting and Maintenance", "Quality Management", and "IoT-Enabled Equipment and Facilities". This initiative aims to achieve digital transformation goals focused on cost reduction and efficiency improvement, energy conservation and carbon emission reduction, and service enhancement.
Water Management	• Completed the retrofitting of the water system at the Flight Training Base. • Regular leak detection is conducted on fire water tanks and potable water tanks, and the fire water drainage management process is optimized. • Improve the recycling rate of cooling water circulation systems. • Introduce municipal reclaimed water for landscape irrigation.
Recycling Initiatives	• Green aircraft maintenance practices are being implemented to continuously reduce the replacement rate of No-Fault Found (NFF) components. In the fourth quarter of 2025, this rate decreased by 7% year-on-year. In addition, the usage ratio of qualified second-hand aviation materials is increasing, with three new suppliers added.
Renewable Energy Utilisation	• Completed the first transaction of 1 million kWh of green electricity, including its consumption and the acquisition of green certificates, to use green certificates to offset ground emission reduction costs. • Advanced the first photovoltaic project, with the rooftop distributed photovoltaic project in the Beijing region having obtained approval.
Near-Zero Carbon Construction	• Advanced the near-zero carbon design of the Daxing Production Support Comprehensive Business Building.
Building Energy-Saving Retrofit	• Progressed in an orderly manner with the renewal and retrofit of ground equipment such as boilers, motors, and lighting systems. • Strictly implement mandatory standards for energy consumption, emissions and safety, and phase out non-compliant equipment in accordance with the law.
Ground Fleet Electrification	• The total number of new energy vehicles in operation reached 1,531. The electrification rate of newly introduced vehicles exceeded 90%, while the electrification rate of the existing fleet increased to 43%.

Table: Water Usage Data

Indicator Name	Unit	2025
Office water consumption	10,000 tonnes	505.4
Office water intensity	tonnes/person	48.89

 

3.3 Pollution Prevention and Control

Air China has prioritised pollution prevention and control as a strategic focus of the Company, systematically improved and strictly implemented its environmental management system to ensure that all emission reduction measures are effectively put into practice. Investment in environmental governance totalled RMB 94.52 million in 2025.

3.3.1 Waste Gas Management

Air China strictly complies with laws and regulations such as the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, the Integrated Emission Standard for Air Pollutants, and the Pollution Control Standard for Domestic Waste Incineration. In accordance with the Air China Environmental Management Manual, the Waste Gas Emission Management Procedure has been revised. Systematic emission reduction strategies are implemented to strengthen the control of waste gas emissions from operations, ensuring that all mitigation measures are effectively implemented.

During the 14th Five-Year Plan period, the Company has progressively advanced the electrification of its ground vehicle fleet, with new energy vehicles accounting for 80% of newly added vehicles. The electrification rate of newly introduced vehicles was over 90% in 2025.

Key Measures for Waste Gas Emission Reduction

• Discharge outlets have been identified and a list of sewage discharge outlets has been compiled, while waste gas emission management is standardised in strict accordance with permit requirements.

• Through the deployment of advanced treatment facilities and online monitoring systems, routine monitoring and real-time full-process control have been implemented for boiler flue gas, canteen cooking fumes, and industrial exhaust gases, ensuring that emissions consistently meet regulatory standards.

• Regular inspections are conducted on the VOCs gas absorption treatment unit, maintenance plans are strictly implemented, activated carbon is replaced at regular intervals in accordance with specifications, and all activities are fully recorded in the ledger.

• When aircraft are docked at the gate, ground power units are prioritised to reduce APU operation. In 2025, APU replacement agreements were fully executed with all applicable domestic airports to reduce ground emissions.

• Progressed the electrification of on-site vehicles, expanded the use of new energy vehicles, and built supporting shared charging facilities. Concurrently, a self-inspection of diesel vehicle exhaust retrofits was conducted to ensure compliance with vehicle emission standards.

 

3.3.2 Wastewater Management

Air China strictly complies with laws and regulations such as the Law of the People's Republic of China on the Prevention and Control of Water Pollution and the Integrated Wastewater Discharge Standard. In accordance with the relevant specifications set out in the Air China Environmental Management Manual, Air China has formulated and implemented the Wastewater Discharge Management Procedure to achieve full-process control over wastewater discharge.

Key Measures for Wastewater Reduction

• Equipped with advanced sewage treatment facilities and an intelligent online monitoring system, real-time collection, transmission and analysis of data throughout the entire treatment process are achieved to ensure stable and efficient operation of the system.

• Discharge outlets have been systematically reviewed and a register of sewage discharge outlets has been established. In strict accordance with the requirements of the pollution discharge permit, classified management is rigorously implemented. Regular monitoring is conducted for domestic sewage and industrial wastewater to ensure that discharges consistently meet regulatory standards.

• The rainwater pipe network system has been improved, and regular inspections and cleaning of stormwater and sewage pipe networks are conducted.

• A qualified third-party institution is engaged to conduct professional inspections and cleaning of sewage treatment facilities, and inspection records are maintained in accordance with prescribed standards.

Table: Wastewater Data

Category	Unit	2025
Industrial wastewater treated	10,000 tonnes	66.2
Industrial wastewater treatment rate	%	100

 

3.3.3 Waste Management

Air China strictly complies with relevant regulations, including the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and the Technical Policy for the Prevention and Control of Hazardous Waste Pollution, and has established internal systems such as the Solid Waste Management Procedure to implement full-process control over waste. The Company has signed hazardous waste disposal agreements with qualified third parties to ensure compliant handling of maintenance waste throughout all stages - from collection and storage to transportation and disposal - thereby achieving 100% compliant waste disposal. By conducting emergency drills for hazardous waste leaks, the emergency response capability of employees for sudden environmental incidents has been enhanced. In 2025, Air China experienced no hazardous waste leakage incidents and received no administrative penalties for pollution-related issues.

Key Measures for Waste Reduction

• Paperless Travel: In 2025, a total of 45.89 million passengers completed ticketing, seat selection, check-in, and baggage drop-off via the paperless platform, significantly improving travel efficiency and environmental experience.

• Personalised Meal Customisation: In 2025, a total of 580,000 passengers participated in the "Meal Reduction on Demand" incentive scheme, significantly reducing onboard catering waste.

• Plastic Reduction and Waste Minimisation Initiative: Since 2022, Air China has completely phased out single-use plastic products on domestic flights and in self-operated lounges, gradually replacing them with recyclable or biodegradable materials. As of 2025, coverage has been extended to international flights, with all relevant in-flight and lounge amenities fully replaced with environmentally friendly alternatives.

• Green Office: Continuously promote paperless operations and budget management for office supplies. Implement green controls on equipment such as air conditioning, lighting, and printers; standardise water and electricity usage; encourage green travel and consumption; and foster a low-carbon office culture.

• Waste Classification and Disposal: Comprehensive waste classification management has been implemented, whereby domestic waste, food waste, etc., are sorted at source and uniformly transported to designated storage facilities for standardised recycling and disposal by qualified third parties. In 2025, aircraft waste was centrally processed by airports, with a total of 4,347.09 tonnes of food waste processed throughout the year.

Table: Volume of Hazardous Waste Treated⁷

Category	Unit	2025
Waste containers and contaminated materials	tonne	397.7
Waste oil	tonne	299.3
Waste organic solvents	tonne	181.0
Waste paint, paint stripper liquid/sludge	tonne	57.8
Spent activated carbon	tonne	132.7
Waste water treatment sludge	tonne	296.3
Waste acid	tonne	46.8
Waste Alkali	tonne	29.8
Mercury-containing waste	tonne	1.6
Reagents and waste detection liquids	tonne	4.0
Waste lead-acid batteries	tonne	0.2
Lead-containing waste	tonne	0.4
Waste cadmium-nickel batteries	tonne	3.4
Spent developer solution	tonne	0.7
Waste resin and waste adhesive	tonne	1.5
Other waste	tonne	127.7
Organic resin waste	tonne	1.8
Oil/water, hydrocarbon/water mixtures or emulsions	tonne	2.4
Spent catalyst	tonne	4.4
Total Hazardous Waste	tonne	1,589.5

⁷Hazardous waste data covers Air China, Ameco, Shandong Aviation Group, and Shenzhen Airlines.

3.3.4 Noise Management

Air China has formulated and implemented the Noise Emission Management Procedure to implement full-process control over noise emissions, from source control and process management to end-of-pipe treatment. This is done to mitigate the environmental impact of operations and fulfil environmental protection policies and objectives. When introducing new equipment and processes, Air China prioritises the selection of low-noise, regulation-compliant equipment and processes.

During the aircraft selection phase, Air China prioritises the introduction of aircraft models equipped with advanced noise reduction technologies. Through regular engine inspections and maintenance, it ensures that engines remain in good technical condition, thereby preventing abnormal noise caused by equipment ageing or malfunction. During flight operations, noise interference with densely populated areas is effectively mitigated by optimising take-off and landing procedures and coordinating flight schedules and runway resource allocation with airports. Furthermore, during aircraft ground operations, the use of ground power and pre-conditioned air systems is promoted to replace the Aircraft Auxiliary Power Unit (APU), thereby reducing ground noise emissions.

3.4 Environmental Management and Ecological Protection

Air China has established a three-tier ecological and environmental protection management system. The Ecological and Environmental Protection Leading Group is responsible for top-level planning and major decision-making, the Energy Conservation and Environmental Protection Office undertakes policy coordination and daily supervision, and the ecological and environmental protection departments of each subsidiary are responsible for on-site implementation. Classification-based dynamic management is implemented based on the entity's attributes, energy consumption levels, and emission levels to ensure clear responsibility allocation and precise control. In March 2025, the Company held a green development meeting to define key annual tasks and facilitate the orderly implementation of energy conservation and carbon reduction targets. The meeting specifically deployed measures to improve fuel efficiency and promote the application of sustainable aviation fuels. Through annual planning, dedicated tracking and systematic coordination, it effectively supported the steady progress of carbon peaking initiatives. In 2025, Air China successfully passed the surveillance audit of its ISO 14001 environmental management system, covering the headquarter and 11 branch companies.

Case: Air China's Initiative to Enhance Energy Conservation and Environmental Protection Capabilities and Awareness

To further advance the green transition, Air China held a themed publicity week in June 2025 entitled "Energy Conservation and Efficiency Enhancement, Leading with Renewal". Through initiatives including the issuance of advocacy statements, knowledge quizzes, and the collection of practical works, the event engaged over 42,000 employees and effectively disseminated low-carbon and green development concepts. In July of the same year, focusing on industry frontiers and the requirements of the "two key priorities and two new initiatives", Air China held a special training session on energy conservation and environmental protection. Experts were invited to deliver in-depth lectures on key areas such as sustainable aviation. The training covered 200 core staff members, totalled 8 training hours, and significantly enhanced professional management capabilities.

3.4.1 Protection of Biodiversity

Air China strictly complies with relevant laws and regulations, including the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on Environmental Impact Assessment, and the Water and Soil Conservation Law of the People's Republic of China, to effectively protect ecological and environmental quality and biodiversity.

Case: The Successful Holding of the Air China Yangtze River Ecological Protection Fund's "Walking with You" Biodiversity Conservation Public Welfare Activity

The Air China Yangtze River Ecological Protection Fund continues to build a systematic ecological protection network across the Yangtze River basin. In July 2025, the "Walking Together with You" public welfare project was implemented in the Jinfo Mountain National Nature Reserve in Chongqing. Intelligent devices, including AI-powered infrared cameras and acoustic monitoring systems, were deployed. By integrating science popularisation experiences with public participation, a demonstration case for technology-enabled, community-wide biodiversity conservation was established. During the event, experts presented an overview of the conservation status of the François' langur (Trachypithecus francoisi), a flagship species in the reserve and a Class I nationally protected wild animal in China, and held an engaging biodiversity quiz to enhance public ecological awareness.

On the same day, Air China, in collaboration with the China Environmental Protection Foundation, launched a themed flight on the Chongqing-Beijing route entitled "Beautiful China, Journeying Together with You". Through thematic cabin decorations, catering services, multimedia presentations, and interactive promotional activities, the flight vividly showcased biodiversity conservation achievements to passengers, allowing them to experience the ecological charm of Chongqing, the "City of Mountains and Rivers", at an altitude of 10,000 metres.

3.4.2 Facilitating Green Travel for Passengers

Leveraging its role as a civil aviation gateway, Air China has pioneered green science communication. It has launched the "Enjoy Clean Flights for Low-Carbon Travel" green mobility service, enabling passengers to voluntarily participate in carbon reduction projects using either flight miles or cash payments. Through rigorous selection of forestry carbon sink projects, precise calculation of route carbon emissions, third-party verification and certification of offset volumes, and issuance of exclusive certificates, the initiative makes green aviation tangible, accessible and trustworthy, thereby fostering a society-wide consensus on low-carbon development.

3.4.3 Green Procurement

Air China has systematically integrated green and environmental protection concepts into its supply chain management. It has issued the Notice on Promoting Green Procurement, requiring suppliers to provide statutory environmental certification materials during the qualification phase and conducting evaluations of their environmental performance. In daily procurement, Air China balances environmental and economic benefits, prioritising energy-efficient, low-carbon, environmentally friendly products and services. Concurrently, the Company has implemented the requirements of the Notice on Regulating the Management of the "Blacklist" for Suppliers of Central Enterprises, imposing restrictive management measures on suppliers with environmental violations or pollution incidents.

Highlight Performance:Air China participated in the domestic sustainable aviation fuel (SAF) application pilot programme, with a cumulative SAF uplift of 1,501 tonnes in 2025.

Case: Air China Collaborates with Airbus to Promote Green Aviation and Launches SAF Development Initiative to Lead a Sustainable Future

On 24 October 2025, Air China participated in the Sustainable Aviation Fuel (SAF) themed event hosted by the French Embassy in China as part of the "China-France Environmental Month". To further build industry consensus, Air China, together with partners including Airbus, jointly released the Initiative on Diversified Development of Technology Pathways for Chinese SAF Production at the event, calling on all parties to collaborate in building a more resilient fuel supply chain. At the same time, Air China and Airbus launched the pilot "SAF Corporate Client Programme" to explore the development of a multi-stakeholder collaborative business model for SAF application and build a sustainable, mutually beneficial and responsible ecosystem for the SAF industry.

4. Quality Service

Air China regards service quality management and customer experience enhancement as the core drivers of quality improvement, embedding service standards and customer feedback across the entire operational lifecycle. Through data-driven insights into passenger needs and continuous iteration of products and services, the Company is committed to building its brand on the foundation of premium travel experiences, thereby driving simultaneous improvements in service quality and customer satisfaction.

4.1 Quality Service Management

Air China has formulated the 14th Five-Year Plan for the Service Sector, breaking down targets on an annual basis and coordinating the implementation of the plan. It has formulated internal management systems including the Service Quality Management Manual, Service Quality Risk and Hazard Management Regulations, Service Quality Inspection Management Regulations, Service Supervision Work Management Regulations, and Service Rewards and Punishments Management Regulations. Additionally, it has released an updated version of the Operational Specifications for Product Service Compensation and Liability for Damages to standardise the overall requirements for the Company's service quality management, effectively mitigate quality risks, and elevate its quality management standards. The Company's President serves as the accountable person for service quality management, tasked with overseeing, guiding and reviewing matters related to the quality system.

The 14th Five-Year Plan for the Service Sector

Creating World-class Services and Products Deepening the "Three Orientations" Practicing the "Three Comprehensive Strategies" Customer Orientation, Problem Orientation, Value Orientation Global Benchmarking, Full-process Governance, Endeavour throughout Entire Chain Static Planning → Dynamic Management Fragmented Scene → Full-process Connection Passively Follow → Actively Lead Excellent service, Comprehensive and smooth service guarantee, Win-win and efficient collaboration, Timely and accurate service, Innovative and digital support, The trustworthy and professional team

 

4.1.1 Quality Management System

Quality Control

To continuously improve service quality, Air China has formulated the Service Quality Risk and Hazard Management Regulations, establishing a comprehensive preventive and corrective mechanism for service quality management covering pre-event risk prevention, in-process monitoring, and post-event hazard rectification. The quality management department is responsible for service hazard identification and investigation. For risks and hazards identified at each stage (pre-event identification, in-process monitoring, and post-event investigation), dedicated management projects are launched. By clarifying accountabilities, formulating rectification measures, and implementing strict closed-loop management, all service issues are resolved effectively. In 2025, the Company experienced no material production and service safety and quality incidents for which it was liable, and incurred no corresponding compensation costs.

Quality Audit

Air China holds the Quality Management System Certification issued by the China Quality Certification Centre (CQC). The certification scope covers air transport passenger services, with certified locations including the Beijing headquarters and relevant branch companies. In 2025, CQC conducted third-party audits of 10 units under the Company's service quality management system. The audits verified the compliance and effectiveness of the Company's service quality management system in accordance with Civil Aviation Administration of China (CAAC) regulations (Guidelines for the Construction of Service Quality Management Systems for Public Air Transport Passengers), the ISO 9001:2015 quality management system standard, and the Company's own service quality management system documentation.

4.2 Enhancing Customer Experience

Air China has always placed passenger experience and rights protection at the core of its operations. Through systematic on-time performance assurance, efficient customer demand response, and responsible marketing practices, it has built a customer-centric premium service system.

4.2.1 Guaranteeing Flight Punctuality

To ensure on-time flight operations, the Company has implemented a comprehensive and efficient set of safeguard measures to mitigate delay risks. Resources are flexibly allocated to address unforeseen events, ensuring passengers arrive at their destinations safely and on schedule.

Table: Measures for Guaranteeing Flight Punctuality

Category	Key Measures
Management of Flight Punctuality	• Issued the Air China Limited Flight Punctuality Reward and Penalty Management Measures and Air China Flight Rapid Turnaround Work Plan (Trial). Published 10 monthly bulletins on flight punctuality management and convened 4 regular flight operation meetings. • Issued the Air China Limited Flight Punctuality Data Dictionary (Version 1) to standardise data management across data definitions, calculation rules, and naming conventions. • Conducted ongoing analysis of irregular flights, formulated the Irregular Flight Analysis Procedure, and revised the Classification Rules for Irregular Flight Causes. The classification of irregular flight causes has been refined and expanded to 179 items. • Optimised the irregular flight appeal process, strengthened coordination and communication with regulators, and submitted reasonable appeals for irregular flights. During the reporting period, a total of 198 individual flight punctuality awards were issued, and 39 individual penalties were imposed.
Assessment and Statistical Analysis of Flight Punctuality	• In accordance with the 2025 Flight Punctuality Assessment Indicators and Regulatory Measures issued by the Civil Aviation Administration of China (CAAC), established operational assessment items and target values, communicated the requirements to all relevant units, and provided detailed guidance on the associated indicators. • Established a flight operation status tracking mechanism, analysed the causes of irregular flights, assessed gaps between actual and scheduled flight durations, and optimised flight timetable scheduling. Concurrently, submitted data in accordance with regulatory requirements and conducted daily reconciliation of data from CAAC's Flight Normal Management System to continuously improve the accuracy of the Company's flight data.
Flight Operations Management	• Conducted real-time monitoring of flight operations, issued rapid turnaround warnings as needed, and resolved irregular flight situations promptly. • Monitored and analysed unauthorised early flight departures using actual flight production data and system operation records. Conducted root-cause analysis for each delayed flight with regular reporting, to continuously supervise and improve ground support standards.
Management of Self-Attributable Flight Delays	• By reasonably adjusting flight schedules and urging support units to prioritise key operations, the Company reduced self-attributable flight delays of over four hours and minimised passenger delay compensation costs. During the reporting period, a total of 130 coordination meetings were held to address abnormal operations. The share of self-attributable flight delays exceeding 4 hours was 0.019 percentage points lower than the industry average and 0.044 percentage points lower than the same period in 2024.
Diversion Mechanism Establishment	• For flight routes subject to flow control restrictions, implemented rerouting measures to avoid or reduce flight delays and ensure normal flight operations. • Issued the draft Air China Restricted Flight Diversion Work Procedure (Trial) to clarify the division of responsibilities across all positions and handling procedures, ensuring smooth and efficient end-to-end operations.
Collaborative Management Mechanism Establishment	• Established the Air China Collaborative Operation Mechanism to effectively improve the collaborative efficiency of the Company's three-tier operation control system. • Conducted a comprehensive review and integration of the Company's existing collaborative resources and operational status.
Seasonal Operation Safeguard Plans	• To strengthen the Operation Control Centre's overall management of flight operation support during the thunderstorm and ice/snow seasons, formulated dedicated support plans, fully leveraged the functions of all departments, and laid a solid foundation for smooth flight operations. • During the peak thunderstorm season, conducted daily monitoring of Air China's on-time performance indicators, as well as risk assessment and rectification for performance indicator completion.
Short-Delay Flight Coordination Mechanism	• Implemented prompt coordination for flights with temporary short delays to ensure normal operations.

On-time Performance Data⁸

l  2025 On-time Flight Rate: 91.78%

l  2025 Flight Execution Rate: 99.2%

⁸Flight regularity performance data covers Air China, Beijing Airlines, Dalian Airlines, and Air China Inner Mongolia.

4.2.2 Response to Customer Demands

Air China has built comprehensive, multi-channel customer engagement mechanisms. It has established and implemented the Complaint Management Regulations and a one-stop closed-loop complaint handling mechanism, clearly defining the responsibilities and response timeframes of complaint management departments at all levels to improve customer complaint handling efficiency. In 2025, Air China shortened the handling time for passenger complaints related to self-attributable irregular flights from 7 working days to within 72 hours.

The Company has formulated the Passenger Satisfaction Survey Management Regulations, conducts annual customer satisfaction surveys, reviews and analyses customer feedback, and implements corresponding rectification and improvement measures. In 2025, it established clear performance indicators to drive improvements in service quality and customer satisfaction.

2025 Service Performance Data⁹

Indicator	Unit	2025 Result
International mishandled baggage rate	pieces/thousand passengers	1.08
Domestic mishandled baggage rate	pieces/thousand passengers	0.09
Total passenger complaints across all channels	cases	32,769
Resolved customer complaints	cases	32,769
Passenger complaint resolution rate	%	100
Overall passenger satisfaction score	points	88.1
Ground service satisfaction score	points	87.6
Ticketing service satisfaction score	points	88.9
Cabin service satisfaction score	points	88.4

⁹2025 service performance data covered Air China, Beijing Airlines, Dalian Airlines, and Air China Inner Mongolia.

 

4.2.3 Responsible Marketing

Air China strictly complies with relevant laws and regulations, including the Law of the People's Republic of China on the Protection of Consumer Rights and Interests and the Advertising Law of the People's Republic of China. It has established internal management standards, continuously improved its institutional system, and consolidated its management foundation to strictly prohibit exaggerated or false marketing activities. When presenting the Company's image, brand and services to the public, it proactively and fully discloses key information including legal risks and event terms, clearly states potential risks of relevant projects, and fully protects customers' right to information, thereby minimising disputes, litigation or legal risks arising from inadequate disclosure.

4.3 Information Security and Privacy Protection

Air China regards information security and privacy protection as a cornerstone of its sustainable development. It has established a comprehensive data management system with clearly defined accountabilities and strict implementation protocols, continuously improving the professional standards of data security governance and risk prevention capabilities.

4.3.1 Governance

Air China has established a Cybersecurity Management Committee as the highest decision-making body for cybersecurity work. The Committee is led by senior management and is responsible for the overall coordination of strategic planning and supervisory implementation for information security and data compliance management. A dedicated leading group is set up under the Committee to undertake specific security decision-making responsibilities, with a permanent office established under the leading group to oversee the development and improvement of cybersecurity systems and mechanisms. Relevant business units are responsible for the daily operation and maintenance of cybersecurity, forming a three-tier management system with top-down supervision and clearly defined accountabilities. Members of the Committee hold relevant academic qualifications and extensive professional experience in information security and privacy protection, ensuring the professionalism and effectiveness of decisions related to information security and privacy protection.

The Company strictly complies with relevant laws and regulations in all operating jurisdictions, including the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law of the People's Republic of China. It has formulated and issued internal management systems covering all business lines and subsidiaries, including the Cybersecurity Management Measures and Detailed Implementation Rules for Data Security Management,to fully protect information security. Suppliers are also required to comply with the above-mentioned system requirements. In accordance with the Supplier Management Procedures, specific requirements for customer privacy and data security assessment and management have been embedded across the entire supplier lifecycle, including qualification and performance evaluation.

The Company undertakes not to lease or sell users' personal information to third parties. Such information will only be provided to third parties when necessary for the completion of transactions and services, and only after obtaining the user's explicit consent.

4.3.2 Strategy

Air China has adopted "digital intelligence enablement, system foundation building, and value leadership" as its core strategy, and "institutional guidance, perceptual empowerment, and integrated efficiency improvement" as its guiding principles. It accelerates technological innovation, advances digital and intelligent transformation, and comprehensively drives forward information security and privacy protection initiatives.

4.3.3 Management of Impacts, Risks and Opportunities

Air China actively conducts information security and privacy protection risk management, and is progressively integrating it into the Company's overall enterprise risk management framework.

Risk Identification

• The rapid development of next-generation information technology brings both opportunities and challenges to the Company's high-quality development. World-leading airlines are accelerating the implementation of digital intelligence as a corporate strategy, with cybersecurity identified as the top priority for digital investment by most airlines.

• While the Company is accelerating its digital transformation, it continues to face a series of challenges. The full digitalisation and online migration of business operations have brought significant cybersecurity challenges. Its information systems cover critical business areas including flight safety operations and passenger marketing services. Internet connectivity exposes these systems to security risks such as cyber-attacks and unpatched software vulnerabilities. The current levels of informatisation and digital intelligence vary across the Company's business segments and units, resulting in challenges including inconsistent understanding of digital strategy, misalignment between digital and business strategies, insufficient business-technology synergy, and cross-departmental collaboration barriers.

Risk Assessment

• In accordance with the Guidelines on Grading Cybersecurity Incidents issued by the Cyberspace Administration of China (CAC), the widespread dissemination of illegal and harmful information, which constitutes a major cybersecurity incident, will impact the Company's normal production and operations and trigger significant public opinion risks.

• In line with the Central Committee of the Communist Party of China's directive to accelerate the development of new quality productive forces, and amid the industry's competitive landscape, evolving passenger demand trends, and technological innovation opportunities, failure to timely seize digital transformation opportunities and accelerate business digitalisation will weaken the Company's ability to build core competitiveness in the digital era.

• If units at all levels of the Company have insufficient strategic understanding of digital transformation, if there is misalignment between digitalisation and business strategy, or if effective business-technology synergy cannot be achieved, the end-to-end implementation and high-quality advancement of the digital transformation strategy will be adversely affected.

Risk Management

• Strengthened the development of the corporate network and information security protection system. Continuously monitors updates to national and superior regulatory laws and regulations, and promptly incorporates relevant requirements into the internal management system. Conducts rigorous practical offensive and defensive drills to thoroughly analyse potential risks and gaps, driving the rectification of identified issues. Holds monthly work safety meetings to assess the risk profile of information systems, and collaborates with business departments to establish a joint prevention and control mechanism, ensuring the secure and stable operation of the Company's information systems.

• Strengthened the overall planning and systematic advancement of the Company's digitalisation efforts. Implements the decisions and deployments of the Party Central Committee on the digital economy, adheres to the dual-wheel drive of business and technology, coordinates the development of the 15th Five-Year digital transformation plan, systematically formulates the annual digital work plan, focuses on key annual digital construction tasks, and builds Air China's core competitiveness in the digital era.

Information Collection Procedures

• Has established a Privacy Policy to inform users of matters related to the collection, use, deletion, retention and protection of personal information, and to guide users on how to exercise their rights to access, rectify and delete their personal data, ensuring their right to information.

Information Security Storage

• Ensures compliance with statutory requirements for the storage location, method and retention period of personal information, and stores information using access control, encryption and de-identification technologies.• For passenger information storage, it ensures that information is retained for the minimum necessary period. Passenger personal data is deleted or anonymised upon the expiry of the stipulated retention period, and no personal data is collected from third parties except where required by law.

Technical Assurance

• Has implemented technical safeguards including intranet access control, multi-layered in-depth defence for the internet, application and system vulnerability scanning, web application protection, and centralised data storage and backup.

• Uses a centralised monitoring and management platform for real-time monitoring of various information security devices within the network, and applies specific control measures to key information systems and personnel equipment.

• For security notifications, it receives cybersecurity information and intelligence from various notification centres. Based on professional cybersecurity threat intelligence, it issues timely notifications and implements remediation measures for external security incidents and vulnerability disclosures.

• Conducts annual penetration testing on core business systems storing sensitive data, and promptly remediates all identified application vulnerabilities to continuously improve the security protection capabilities of its information systems.

• Implements security controls for sensitive data transmitted externally to ensure the security of outgoing emails, and has deployed boundary data loss prevention (DLP) tools to enforce security controls on outbound data.

Emergency Response

• Has established emergency response measures including vulnerability notification and response mechanisms, defined handling procedures for information security incidents, and proactively mitigates information security risks.

• Conducts regular security emergency drills and offensive and defensive exercises to prevent unexpected incidents.

Information Security Audit

• Engages an external audit firm to review the security and management compliance of information systems. During the reporting period, one internal audit and one external audit were conducted on the Company's information systems and policies. Concurrently, it completed CAAC aviation security audits and assessments, a cybersecurity classified protection evaluation, and an International Air Transport Association (IATA) IOSA audit, with a 100% risk rectification rate.

Privacy Protection Training

• Conducted a series of company-wide online training sessions via online learning platforms and dedicated publicity columns, covering topics including cybersecurity policies and regulations, cyber threat protection for critical information infrastructure, data security protection, and prevention of social engineering and phishing attacks.

• Conducted full-coverage supplier security training for vendors providing development services for Air China's critical systems.

4.3.4 Indicators and Targets

Air China has incorporated key performance indicators (KPIs) for information security and privacy protection into its target management framework, and improves its management capabilities through regular tracking, assessment, and performance disclosure. The Company has established a Safety Control Platform to realise visualised security monitoring, proactive protection, and systematic internal control, continuously improving the level of intelligent security management.

In 2025, the Information Management Department achieved a 100% pass rate for network and information security certifications. It obtained the ISO/IEC 27001:2022 certification, completed PCI-DSS certification, and successfully passed the classified protection Level 3 assessment for 12 systems. No data leakage incidents or related losses occurred during the year.

Target: Zero material information security incidents.   Achieved

4.4 Service Quality Improvement

Air China is committed to providing comprehensive and attentive services to all passengers, ensuring every passenger enjoys a premium travel experience. It keeps pace with the times and actively promotes the upgrading and application of digital services to deliver more convenient and efficient travel solutions.

 

Routine Services

Intelligent Mobility

• The upgraded "Ace Flight" system, featuring the "Air China Cabin 360-Degree Panoramic View", was officially launched. The system covers three major aircraft manufacturers: Airbus, Boeing, and COMAC, includes 11 mainstream aircraft models, and accurately replicates 24 different cabin layouts.

• Development of the "Smart Cabin" project is continuously advancing. Thirteen independently developed system functions have been launched, including the "E-Companion" information push service, intelligent group paging, digital operational coordination dashboard, and low-system-specification warning functions.

• The "Automatic Check-in" service has been launched, covering 5 airports including Guangzhou, Hangzhou, Wuhan, and Chengdu Tianfu/Shuangliu, and 16 domestic routes.

In-flight Entertainment

• Enhanced the in-flight service experience. The new A320 fleet has been equipped with the domestic iWO in-flight entertainment system, and the 2025 version of the safety demonstration video, as well as new boarding and deplaning music titled From Afar to Further, have been launched.

Ground Handling Services

• The BSIS system's delayed push service for checked baggage information has been expanded to 125 domestic airports, with dynamic full coverage of Air China's domestic airports based on actual operational conditions.

• Has established a one-stop end-to-end service for delayed baggage, eliminating the need for passengers to contact the airport terminal directly.

In-flight Meals

• Launched series of in-flight catering services.

• Launched the new tableware collection.

Service Products

• Actively promoted rail-air intermodal transport services, with cross-sales launched on the 12306 platform. As of the end of 2025, this product covers 1,043 railway routes.

• Launched the "2+2+2" scheme (including two domestic refund vouchers, two international refund vouchers, and a free/discounted refund mechanism within two hours of ticket purchase), as well as features including in-flight meal pre-selection and meal waiver options, to continuously improve user experience.

• Has continuously developed the "Phoenix Miles" frequent flyer brand, with total membership exceeding 100 million.

• Comprehensively developed the "Air China Express" service brand, which was successfully selected as one of the second batch of outcomes of the Central Enterprise Brand Leadership Action in the excellent achievement evaluation.

• Exclusive services for first-time flyers have been extended to international and regional flights departing from mainland China.

• Continuously improved the quality of its self-operated lounges, including the opening of the new "Zichen" VIP Lounge in Urumqi. The "Smart Boarding" service has been launched at 9 self-operated lounges in Beijing, Shanghai and other cities. A variety of cultural themed activities were held, with passenger interaction events during the Spring Festival, Dragon Boat Festival and Mid-Autumn Festival receiving positive feedback.

• Has built a blockchain-based airline digital asset issuance platform, and officially launched the "Phoenix Miles" 31st Anniversary Gift digital asset. This makes Air China one of the first airlines in China to enable core aviation entitlements to be collected, used and traded.

Special Passenger Services

Unaccompanied Children Service

• The Air China App has launched a booking service for unaccompanied minors (UMs).

• Has optimised meal selection criteria to ensure child-friendly non-spicy meals are included in the standard meal offering.

On-board Wheelchair Service

• Provides free on-board wheelchair services for passengers who are fit to fly but have limited mobility, assisting them with moving to and from their seats and accessing the lavatory.

Baby Bassinets

• Air China provides baby bassinets in Business Class, Premium Economy Class and Economy Class on international routes operated by specific aircraft types.

Special Needs Services

• Provides check-in assistance and checked baggage handling (check-in and collection) for hearing or visually impaired passengers who are fit to fly, in accordance with their specific needs.

• Passengers can book the point-to-point small animal transport service on the Air China App and official website for flights operated by Air China with Air China flight numbers.

Case: "Thank You for Your Hands!" - A 110-Minute Heartwarming Transit for 29 Deaf and Mute Passengers

On 5 July 2025, the Air China ground support team at Beijing Capital International Airport successfully assisted 16 members of a deaf and mute tourist group to complete all six procedures from international arrival to domestic transfer via its professional and efficient barrier-free service model, enabling them to board 42 minutes ahead of schedule. The remaining 13 passengers in the group also completed baggage collection smoothly upon arrival in Beijing. Throughout the process, all communication was conducted silently through gestures, text and illustrations, vividly embodying the Company's customer-centric service philosophy and its commitment to ensuring "smooth and barrier-free journeys" for all passengers.

5. Employee Development

Air China's mission is to "empower employees". It places paramount importance on safeguarding employee rights and interests, as well as caring for their health and well-being. The Company strengthens the reform and development of the industrial workforce, expands diverse development pathways for employees, and incentivises employees to excel in their roles, thereby achieving mutual growth and win-win development between employees and the Company.

5.1 Employee Rights and Communication

Air China continues to deepen its work on safeguarding employee rights and interests, adheres to principles of equal employment and workforce diversity, pays attention to employee concerns, and actively fosters a harmonious working environment.

5.1.1 Compliant Employment

Air China strictly complies with laws and regulations including the Labour Law of the People's Republic of China, the Labour Contract Law of the People's Republic of China and the Employment Promotion Law of the People's Republic of China. It fosters a workplace environment that is fair, compliant and equal, strictly prohibits all forms of forced labour, child labour, workplace discrimination, harassment and bullying, and effectively safeguards the legitimate rights and interests of employees. During the Reporting Period, Air China had no violations of child labor, forced labor, or discrimination.

In alignment with the Company's Human Resources 14th Five-Year Plan, Air China has implemented its talent development plan, closely aligning with the Company's strategic development needs to scientifically formulate and execute annual recruitment plans. The Company promotes high-quality employment through campus recruitment, social recruitment, and the introduction of market-oriented talent. During the recruitment process, the Company strictly controls recruitment quality and strengthens the supervision mechanism to ensure that recruitment activities are conducted in accordance with laws and regulations, and are fair and just. In 2025, the Company steadily advanced its "three-region recruitment"¹⁰ initiative, actively supported the resettlement of retired military personnel, participated in dedicated recruitment drives for persons with disabilities, and provided internship opportunities for students from the Greater Bay Area and Taiwan. These actions underscore the responsibility and commitment of a central state-owned enterprise. Concurrently, 93 recruitment positions were advertised on the company's internal talent exchange platform to facilitate employee development channels and mobilise the existing internal human resources.

¹⁰The "three-location recruitment" initiative is a key strategic action aligned with the Central Committee's directives on regional development in Tibet and Xinjiang. It focuses on engaging university graduates from the provinces of Tibet, Qinghai, and Xinjiang, as well as Tibetan-inhabited counties in Sichuan, Yunnan, and Gansu. Eligibility extends to graduates holding local student status or local household registration before enrollment.

Table: Human Resources 14th Five-Year Plan

l  Strengthen organizational governance and optimize corporate management and organizational structures

l  Cultivate a high-quality cadre workforce and consolidate talent assurance for the company's strategic growth

l  Accelerate the transformation of operational mechanisms to enhance internal workforce motivation and self-driven capability

l  Systematically improve the efficiency of human capital allocation to advance high-quality development

As of the end of 2025, the total number of employees was 107,795，and labour contract signing rate was 100%.

Table: 2025 Employee Demographics

Category	Breakdown	Number of personnel	Proportion
Employees by Employment Type	Permanent employees under labour contracts	101,292	93.97%
	Dispatched employees	6,125	5.68%
	Other¹¹	378	0.35%
Employees by Gender	Male employees	66,447	61.64%
	Female employees	41,348	38.36%
Employees by Age Group	Employees aged 35 and under	58,653	54.41%
	Employees aged 36 to 45	33,810	31.37%
	Employees aged 46 and above	15,332	14.22%
Employees by Region	Employees within mainland China	104,787	97.2%
	Employees outside mainland China	3,008	2.8%
Employees by Job Category	Management	7,245	6.72%
	Functional Personnel	5,974	5.54%
	Marketing Personnel	5,470	5.07%
	Production Operations Personnel	5,903	5.48%
	Ground Handling Staff	13,133	12.18%
	Cabin Service Personnel	28,625	26.56%
	Production support personnel	6,166	5.72%
	Flight Crew	14,756	13.69%
	Engineering and Maintenance Personnel	17,421	16.16%
	Information Technology Personnel	1,240	1.15%
	Other Personnel	1,862	1.73%
Employees by Educational Attainment	Master's degree or above	5,409	5.02%
	Undergraduate	65,315	60.59%
	Specialist College	28,096	26.06%
	Secondary school or below	8,975	8.33%

¹¹Other employee categories include air marshals and rehired personnel.

Table: 2025 Employee Turnover Rate

Category	Proportion
Overall employee turnover rate	2.08%
Turnover rate by employment type	Permanent employees under labour contracts: 1.80%
	Dispatched employees: 0.28%
Turnover rate by gender	Male employees: 1.09%
	Female employees: 0.99%
Turnover rate by region	Domestic: 1.99%
	Overseas: 0.09%
Turnover rate by age group	Employees aged 35 and under: 1.52%
	Employees aged 36 to 45: 0.37%
	Employees aged 46 and above: 0.19%

 

5.1.2 Protection of Rights and Interests

Air China attaches great importance to employees' democratic rights and legitimate interests. In accordance with the Trade Union Law of the People's Republic of China and the Provisions on Enterprise Democratic Management, Air China formulated the third edition of the List of Matters for Review and Approval by the Employee Representative Congress and the Joint Meeting of Delegation Heads of Air China Limited and other systems, established trade union organisations at all levels, upholds employees' rights to freedom of association, assembly, and trade union membership, and facilitated the role of employees in democratic management, participation, and supervision. During the reporting period, Air China convened three sessions of the Employee Representative Congress to listen to and deliberate on the Company's annual work report, to review eight special reports in writing, and to elect employee representatives to the new Board of Directors. All motions were duly processed. Concurrently, the Company's case on "Establishing a Multi-level '1+M+N' System for Workers' Congresses" was selected as a model case of democratic management by the All-China Federation of Trade Unions. In 2025, 15 motions were submitted by employee representatives to the Employee Representative Congress, with a 100% response rate.

5.1.3 Communication Services

Air China has deployed digital and intelligent agent applications to meet employees' practical needs, optimised service processes, and enhanced both service efficiency and the employee experience.

Table: Highlights of Communication Service Initiatives

Upgrading of Platform-based Services

• The "CNAHC Employee Service Platform" has been integrated and upgraded, structured into three modules: business inquiry, business processing, and comprehensive services, creating a one-stop portal for employee services. The Business Inquiry Module integrates four query functions, including employee basic information, salary inquiry, and digital employee ID, enabling employees to quickly access their personal data. The Business Processing Module covers seven common transactional processes, such as internal recruitment, attendance management, labour contract administration, and certificate issuance. The Comprehensive Service Module integrates a wide range of services, including lifestyle benefits and employee cultural activities.

• An AI-powered Q&A system and knowledge base have been integrated to enable intelligent inquiries, process-guided self-service, and improved efficiency and employee experience.• During the reporting period, the platform recorded a cumulative total of 1.97 million visits.

Innovation in Intelligent Office Solutions

• Focusing on high-frequency office needs of employees, research and screening identified three typical scenario applications for the Employee Office Agent: digital document issuance (e.g., employment certificates), intelligent meeting minute drafting, and intelligent knowledge base Q&A.

• Leveraging the Company's existing digital and intelligent resources, the "1+3" agent applications have been rapidly deployed to enable automated processing and real-time response for relevant business operations.

In 2025, Air China conducted an online and offline employee satisfaction survey, collecting nearly 1,000 valid questionnaires. Offline surveys were conducted at 10 locations, including the Air China Headquarters Building, Southwest Branch, Zhejiang Branch, and Shanghai Branch. The employee service satisfaction score reached 96.46 points.

5.2 Employee Training and Development

Air China regards talent development as the core driver of corporate development and success. It continuously optimises incentive mechanisms and expands internal promotion channels to unlock employee potential and ensure the organisation advances steadily. Furthermore, the Company provides personalised and tailored learning resources to precisely meet employees' career development needs.

5.2.1 Talent Development

Air China continues to refine a learning ecosystem covering the entire career lifecycle of its employees to strengthen efforts in cultivating innovative talent. The Company has implemented the decisions and deployments of the Party Central Committee regarding the integrated reform of the systems and mechanisms for education, science, technology, and talent. In accordance with the relevant requirements for education and training in state-owned enterprises in the new era, it has formulated and implemented internal regulations including the Compliance Training Outline, the Work Style Training Outline for All Employees, the Aviation Security Officer Training Outline, and the Teaching Management Standards of the Training Department. This has established a progressive training system covering foundational knowledge of laws, regulations and industry standards, core competencies including professional ethics, risk prevention and control, and emergency response, and advanced capabilities including strategic thinking, technological innovation, and risk management. The system provides targeted learning pathways for employees across different positions and development stages.

Table: Air China Training System

l  Full-time Training System for Management Personnel, Young Cadres, and Science and Technology Talents

l  Training System for Pilots, Cabin Crew, Aviation Security Personnel, and Flight Dispatchers

l  Training System for Air Transport Operations, Overseas Assignees, and Commercial Teams

l  Training System for Dangerous Goods Transport and Aviation Security

Table: 2025 Employee Training Status¹²

Category	Training coverage rate (%)	Average training hours per employee
Training coverage by position level
Senior management	62.2%	19.8
Middle management	53.5%	21.5
Front-line employees	76.1%	43.9
Training coverage by gender
Male employees	78.9%	44.1
Female employees	71.5%	42.2

¹²The employee training data includes information from Air China, Beijing Airlines, Dalian Airlines, and Air China Inner Mongolia Company.

 

Leadership Development

Air China has established a systematic leadership development model to enhance the capabilities of cadres in a tiered and categorized manner. For senior executives, the focus is on strategic guidance and leadership team optimization, with decision-making and accountability capabilities enhanced through contractual performance assessments and job rotation. For middle managers, a dedicated young cadre development program is implemented, with comprehensive management capabilities enhanced through secondments, cross-functional rotations, and specialized training. For core professional staff, project-based development and digital training are used to deepen professional expertise, establishing clear career paths for key talent including technology and international professionals, while continuously developing the core talent pool.

In 2025, while faithfully fulfilling the training and teaching tasks assigned by superior authorities, Air China leveraged its own resources to launch key training programs for the first time, including programs for middle-aged and young cadres, youth cadres, and a dedicated capacity-building program for scientific and technological talent, systematically advancing the development of a high-quality cadre team.

General Competency Network Training

The Company continues to advance the development of online training platforms, including the CNAHC Network College. The online academy platform comprises four distinct zones: the Party School Branch, the Leadership Development Branch, the Technical Training Branch, and the External Zone.

In 2025, the Online College launched 2,049 new courses, attracting 72,993 registered learners with total learning hours of approximately 4.01 million.

Enhancement of Academic Qualifications

Air China supports employees in pursuing further education to enhance their academic qualifications and comprehensive capabilities, fostering the mutual growth of individuals and the Company. During the year, more than 400 employees received skills improvement subsidies.

Civil Aviation Employees' University Dream Realisation Project

Air China continues to advance the "Civil Aviation Employees' University Dream Realisation" project, which aims to achieve the "dual improvement" of employees' academic qualifications and professional skills. This initiative was jointly launched by the China Civil Aviation Trade Union and the Open University of China. With online education as its core, it integrates interactive online learning with practical offline training to establish a comprehensive learning platform for learners that combines academic advancement with vocational skill development. The undergraduate and associate degree programs under the project have a study duration of 2.5 years. Upon completing all required credits for compulsory and elective courses and passing all examinations and competency assessments, graduates are awarded nationally recognized graduation and degree certificates within the national education system. In 2025, 612 employees were enrolled in undergraduate and junior college programmes, with a total of 664 scholarships awarded.

5.2.2 Enhancement of Competence

Innovation and Efficiency Enhancement

Development of Employee Innovation Platforms and Commercialization of Innovation Outcomes

• In 2025, one national-level innovation studio and one provincial/ministerial-level studio were accredited, both of which joined the CAAC C919 Aircraft Innovation Alliance. Two studios were recognized under the CNAHC Innovation Alliance, five "Women's Innovation Studios" were established, and 14 group-level studios were launched.

• Organized national-level master craftsmen and highly skilled talents to participate in the 3rd National Master Craftsmen Exhibition and the Civil Aviation Science, Technology and Education Innovation Achievement Exhibition, showcasing employees' innovation achievements and professional expertise.

• The Company participated in the 2025 "Five Small" Innovation Activity for Team Building. Grassroots units submitted a total of 704 proposals, 101 of which were reported to CNAHC. Among them, four "Five Small" innovation achievements were selected for display on a national platform.

Lecture and Commendation Event for Model Workers and Craftsmen

In May 2025, Air China participated in the themed lecture event "Building a Solid Foundation through Work Style, Forging Competence through Craftsmanship, and Improving Efficiency through Innovation" organized by CNAHC, with over 300 attendees on site. Thirteen recipients of national, provincial and ministerial-level advanced honors were commended. In addition, the inaugural CNAHC Innovation Studio Alliance, Women's Innovation Studios, and representative innovation studios were officially inaugurated, with their exemplary stories presented and recognized.

Skills Enhancement

Air China encourages employees to improve their professional capabilities and comprehensive literacy through skills competitions, promoting learning and training through competition.

China Civil Aviation Maintenance Post Skills Competition

In November 2025, Air China participated in the National Finals of the 2nd China Civil Aviation Maintenance Vocational Skills Competition and achieved outstanding results. Specifically, two employees were awarded the title of "National Civil Aviation Technical Expert", four won the title of "National Civil Aviation Gold Medal Employee", one received the title of "National Civil Aviation Youth Post Pioneer", and two were awarded the title of "National Civil Aviation Youth Post Expert".

5.2.3 Promotion and Development

Air China has systematically established a talent promotion and development framework centered on the full-chain mechanism of "selection, cultivation, management, and appointment". For cadre team building, the Company promotes cross-organizational secondments, optimizes open competitive selection processes, and strengthens performance-based assessments to accurately identify and develop talent. At the same time, a reserve pool of outstanding young cadres has been established. Through targeted practical programs such as training at the Central Party School and temporary postings, the foundation of the talent succession pipeline is continuously consolidated.

For professional development, Air China has established and improved job grading systems for key business functions including commercial marketing, flight dispatch, cabin services, and aviation security. Senior and expert grades have been added at the upper levels, with pilot programs extended to areas including ground services and information technology. At the same time, an evaluation mechanism focused on innovative contributions has been systematically strengthened, removing career development barriers for professional talent and establishing a dual-track career development framework for both management and professional roles, fully unlocking the innovation and vitality of the workforce.

During the reporting period, 100% of employees were subject to regular performance and career development assessments.

Air China Professional Technical and Vocational Skills Talent Occupational Qualification Capability Levels

Junior

Intermediate

Senior

Principal

Expert

Chief Expert

 

5.3 Employee Incentives and Wellbeing

Air China continues to implement employee incentive policies and has established a comprehensive and diversified compensation, performance management and benefits system. The Company is committed to providing employees with a competitive and comprehensive remuneration and benefits package, cares for employees' needs, organizes a wide range of activities, fosters a positive working environment, and fully motivates the enthusiasm and creativity of the workforce.

 

5.3.1 Remuneration Performance

Air China adheres to the principle of "pay for job value, pay for individual competence, and pay for performance results", and has established a job and remuneration system based on job value and competence. During the year, Air China continued to improve a performance-based remuneration allocation mechanism. It strengthened incentives and safeguards for key employee groups, and tilted remuneration allocation towards units with outstanding performance, technological innovation areas, and frontline positions involving harsh, dirty, dangerous and arduous working conditions.

In 2025, Air China launched a "Green Channel for Job Performance Grade Evaluation" to grant higher performance grades to employees who have made outstanding contributions in key areas such as technological innovation and rural revitalization, further boosting employee motivation. At the same time, the Company links all employees' performance-related remuneration to key ESG indicators, including energy conservation and environmental protection, passenger satisfaction, and complaint rate per 10,000 passengers. Comprehensive evaluations are conducted quarterly and annually in conjunction with organizational performance contracts and business performance assessment responsibility statements for responsible persons, fully motivating managers and employees to participate in ESG practices.

5.3.2 Welfare and Care

Air China has established a comprehensive employee welfare and protection system. The Company makes full statutory contributions to the "five insurances and housing fund" for all employees in accordance with the law, and provides diversified supplementary benefits including enterprise annuities and supplementary commercial insurance. As of the end of the reporting period, employee social insurance coverage reached 100%, and enterprise annuity coverage also reached 100%.

The Company strictly implements the attendance management system to ensure employees' entitlement to statutory annual leave, maternity leave, parental leave and other types of leave. In addition, the Company actively responds to employees' needs and enhances their sense of belonging through various support programs.

• A total of 49,591 employees participated in the 8th phase of Air China's Critical Illness Mutual Assistance Fund.

• In 2025, RMB 1.18 million in mutual assistance funds was distributed to 59 female employees with illnesses.

• Financial assistance was provided to 117 employees in need, with a total of RMB 416,000 in consolation funds distributed.

• Special consolation visits were conducted for employees with critical illnesses, benefiting 111 employees and their family members, with RMB 222,000 in special consolation funds distributed to employees in financial hardship.

• Consolation visits were also conducted for employees affected by heavy rainfall, with RMB 25,000 in condolence payments distributed to affected staff.

Condolence Visits to Frontline Staff

During the 2025 Spring Festival, Air China continued its "Warmth Delivery" initiative, focusing on consolation visits to employees in arduous positions such as outdoor and apron duties, as well as those undertaking major transport support tasks. Special consolation and hardship assistance funds were allocated through the trade union system to effectively address employees' practical difficulties.

During the summer, the Company continued the "Trade Union Summer Heat Relief" initiative. Special consolation funds were allocated to positions in high-temperature and harsh working environments, with protective equipment and heatstroke prevention medicines distributed. In addition, working conditions were improved to protect the safety and health of frontline employees.

"Happiness · Heart Plan" Psychological Care Project

In 2025, Air China established an integrated online and offline mental health service system to promote the effective deployment of "Happiness · Heart Plan" resources at the grassroots level. A total of 434 activities were held throughout the year, including 146 thematic lectures, 175 group counselling sessions, 46 group counselling sessions for new employees, 55 promotional campaigns, and 12 monthly online micro-courses. One-on-one psychological counselling services were provided for 2,816 hours, serving 5,507 person-times, with 15 hours dedicated to crisis intervention cases. The platform recorded 43,968 active user visits, achieving positive results.

5.3.3 Employee Activities

Air China fosters a warm and harmonious working environment through diverse cultural and sports activities, enhancing employees' sense of belonging and cohesion with the Company through their participation.

Bridging Mountains and Seas, Building Dreams Together: Air China's Overseas Local Staff Visit to China

In November 2025, Air China's Commercial Committee successfully organized the "Journey Home: United We Shine with Air China" China Visit Program for Overseas Local Employees, bringing together 43 local employees from around the world in Beijing. Through in-depth interpretation of the Company's strategic blueprint, detailed sharing of core business operations, immersive experiences of Chinese culture, and in-depth exchanges, overseas local employees enhanced their sense of belonging and gained a deeper understanding of the Company through face-to-face interactions. With warm care and emotional connection, they united to move forward together on a new journey.

Staff Table Tennis Competition

In September 2025, Air China organized employees to participate in the 3rd CNAHC Group-wide Employee Table Tennis Tournament with the theme "Dynamic Ping Pong · Vibrant CNAHC", competing with over 160 players from 33 other organizations. During the tournament, Air China's athletes demonstrated excellent sportsmanship and team cohesion. The event not only enriched employees' leisure and cultural life, but also effectively enhanced team cohesion.

Employee Fitness Program

In October 2025, CNAHC held the 8th Employee Fitness Walk with the theme "Soaring with the Wind, Walking in the Blue Sky". Air China selected employees to participate in four categories: men's and women's 5km races, and men's and women's 10km races. This collective outdoor walking event effectively improved employees' physical fitness, while also enhancing their health awareness and sense of collective belonging.

5.3.4 Employee Honours

Air China continues to promote the spirit of model workers, fostering a positive culture of emulating advanced role models. This has nurtured a large number of exemplary individuals who are dedicated to their posts and strive for excellence.

In 2025, Duan Huangke, a senior flight dispatcher at Air China, was awarded the title of "National Model Worker".

6. Social Contribution

Air China has always taken the fulfilment of corporate social responsibility as its fundamental duty, and has been empowering community welfare and public good development. The company actively responds to national strategies, fulfils overseas social responsibilities, supports rural revitalisation, advances hand in hand with the whole industry, and jointly builds a beautiful and harmonious society.

6.1 Rural Revitalisation

Air China takes General Secretary Xi Jinping's important speeches and instructions on agriculture, rural areas and farmers as well as rural revitalisation as its fundamental guideline. It has thoroughly implemented the spirit of the 20th National Congress of the Communist Party of China and all sessions of the 20th Central Committee, and strictly followed the decisions and arrangements of the CPC Central Committee and the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.

Upholding its mission as a flag carrier airline, Air China leverages the strengths of its "Aviation+" assistance model, coordinates resources in a scientific manner, takes targeted measures, and effectively promotes the consolidation and expansion of poverty alleviation achievements in Zhaoping County, Guangxi Zhuang Autonomous Region and Sonid Right Banner, Inner Mongolia Autonomous Region, supporting both regions to achieve new progress in high-quality comprehensive rural revitalisation.

l  Total non-reciprocal assistance funds invested during the year: RMB 46.62 million

l  A total of 18 assistance projects carried out

l  Non-repayable assistance funds introduced: RMB 31.74 million

l  Procurement of agricultural and specialty products from assisted areas for employees: RMB 54.82 million

l  Assisted sales of agricultural and specialty products: RMB 43.31 million

l  Training sessions delivered: 17,594 person-times, covering grassroots cadres, rural revitalisation leaders and technical personnel

l  2 cadres seconded for on-site support, and 1 cadre dispatched as Village First Secretary

l  52 young employees selected to carry out voluntary teaching for the "CNAHC Blue Sky Classroom" initiative, with cumulative teaching hours exceeding 2,100. The project was recognised as a Best Practice Case at the Sixth Global Poverty Reduction Awards.

l  Targeted assistance work has maintained the highest rating of "Good" in the performance assessment of central-level targeted assistance for eight consecutive years.

Through years of assistance practice, Air China has gradually formed an "Aviation+" assistance model that aligns with central requirements, meets local needs, gives play to the advantages of central enterprises, and reflects Air China's distinctive features. Following the victory in the battle against poverty, the company has continued to focus on the "five revitalisations" - industry, talent, culture, ecology and organisation. It has formulated a "5+N" key project plan for rural revitalisation, further deepened catering procurement cooperation, promoted the redemption of assistance products via mileage points, and strengthened publicity through aviation media and various expos, integrating assistance work into the entire industrial chain.

6.1.1 Consolidating Poverty Alleviation Achievements

Air China has continued to consolidate and expand poverty alleviation achievements in Zhaoping County, Guangxi and Sonid Right Banner, Inner Mongolia. By scientifically coordinating resources and implementing targeted policies, the company has made every effort to effectively prevent large-scale relapse into poverty.

Centred on the needs of people in assisted areas, Air China invested RMB 1.94 million to purchase mobile medical examination vehicles and supporting equipment for Zhaoping County, covering all 12 townships in the county and providing home-based health checks for the elderly and people with chronic diseases. A cumulative total of nearly 25,000 services were delivered, improving the accessibility of primary medical and health services.

For consecutive years, the "CNAHC Blue Sky Rescue" project has been implemented in Sonid Right Banner to prevent households from falling back into poverty due to illness or disaster. In response to local population ageing, elderly meal services have been launched to improve local elderly-friendly services.

6.1.2 Comprehensively Advancing Rural Revitalisation

6.1.2.1 Industrial Revitalisation

Air China has focused on supporting the characteristic industries of the two regions. With scientific planning and targeted investment of more than RMB 20 million, it has launched supply chain upgrading projects. In Sonid Right Banner, support was provided for the construction of a three-tier forage reserve system. In Zhaoping County, forward-looking arrangements were made for matcha production lines, organic fertiliser production and functional product development projects, injecting new quality productive forces into local industries.

The company promoted Zhaoping tea to enter aircraft cabins, airport lounges and other channels, facilitated tea exports to multiple countries, and significantly enhanced brand influence. The brand value of "Zhaoping Tea" reached RMB 5.842 billion, and Zhaoping has been listed among the "Top 100 Chinese Tea Counties" for eight consecutive years. By empowering industrial development through "Aviation+", a shift from external "blood transfusion" to endogenous "blood production" has been realised.

Consumption Assistance

Air China actively organised high-quality enterprises from assisted areas to participate in special campaigns including the "Central Enterprise Consumption Assistance Spring Festival Action", "Central Enterprise Consumption Assistance Rural Revitalisation Week" and "Central Enterprise Consumption Aggregation Action", expanding sales channels through on-site sales and livestreaming e-commerce.

In 2025, the company continued to implement the consumption assistance initiative "Livestock and Meat in the Sky, Tea Fragrance in the Cabin", integrating featured agricultural products into in-flight catering to boost sales. Meanwhile, it increased direct procurement and sales support for agricultural products from assisted areas, effectively solving the difficulty of selling specialty products in poverty-stricken areas, promoting industrial development and ensuring sustained income growth for households lifted out of poverty.

6.1.2.2 Talent Revitalisation

Adhering to the philosophy of "supporting both aspiration and capability", Air China has consistently carried out education assistance and talent development initiatives. For eight consecutive years, it has implemented the "Blue Sky Classroom" voluntary teaching programme and systematically established a long-term mechanism for volunteer selection and training.

In 2025, 52 young employees from Air China, Shenzhen Airlines and Shandong Airlines were selected to provide long-term and short-term voluntary teaching in Zhaoping County and Sonid Right Banner under the "CNAHC Blue Sky Classroom" initiative. The programme accumulated more than 2,100 teaching hours, was selected as one of the Sixth Global Best Poverty Reduction Cases, and included in the South-South Cooperation Knowledge Base. The Company's cumulative direct purchase of agricultural products from supported regions cost RMB 54.82 million, and helping sell agricultural products reached RMB 43.31 million.

 

New Home-School Collaboration Practices

Air China further expanded the coverage of the "CNAHC Blue Sky Classroom" project. It innovatively shifted assistance focus from schools to families, addressing weaknesses in family education for left-behind children and establishing a new "home-school-society" collaborative education model.

More than RMB 5 million was invested to launch projects including teacher training, senior high school teaching and research improvement, music literacy promotion, the New Great Wall Self-Reliance Senior High School Class, and the Blue Sky Education Development Fund, continuously addressing the imbalance in educational resource allocation. By consolidating campus education through teacher training and teaching support and extending services to families, a five-party collaboration mechanism has been established among central SOEs, professional institutions, local governments, schools and families. More than 80 activities were held, covering over 1,500 households. The practice was reported by China Women's Daily and recommended to the All-China Women's Federation.

Cultivating Local Talent Teams

Focusing on the shortage of rural revitalisation talents, Air China has continuously increased investment in talent development. Adopting the model of "inviting in and sending out", it provided integrated online and offline training for more than 17,594 person-times of grassroots cadres, leaders and technical personnel. Training focused on policies, industry, governance and digital skills to enhance practical capabilities, aiming to cultivate local talent teams rooted in rural areas and familiar with agriculture, rural areas and farmers, consolidating the talent foundation for rural revitalisation.

6.1.2.3 Cultural Revitalisation

Air China has invested a cumulative total of more than RMB 6 million to support the development of the Sonid Right Banner Ulan Muqir Art Troupe and built domestic and international performance platforms. The troupe showcased intangible cultural heritage skills such as Khoomei and long-song to diplomatic envoys from 14 countries in China and representatives of international organisations.

By creatively integrating assistance practices into aviation cultural products, a rearranged version of the original assistance-themed song The Distance Beyond by Air China employees has been officially included in Air China's in-flight music playlist.

International Exchange Event for Rural Artisans

Air China invited the Ulan Muqir Art Troupe of Sonid Right Banner to participate in the 2025 Chinese Farmers' Harvest Festival Rural Artisans International Exchange and Promotion Conference hosted by the Ministry of Agriculture and Rural Affairs, with the theme "Craftsmanship for a Beautiful Countryside, Shared Beauty for All", and delivered a wonderful opening performance. The show fully displayed the excellent traditional culture of grassland ethnic groups, promoted China and assisted areas to the world, vividly told Air China's assistance stories, and mobilised broader forces to support rural development.

6.1.2.4 Ecological Revitalisation

Leveraging its resource advantages, Air China has practised the concept that "lucid waters and lush mountains are invaluable assets". It has continuously implemented infrastructure and living environment improvement projects in Jiangkou Village, Zhaoping County, Guangxi, covering village appearance renovation, farmland irrigation, road construction, street lighting installation, agricultural facility upgrading and the renovation of Party member activity centres.

The initiative benefited more than 4,700 villagers and provided support for primary-level Party building, agricultural production and industrial development. In 2025, Jiangkou Village evolved from a national-level poverty-stricken village to a model hygienic village at autonomous region level, a demonstration site for a new-era civilisation practice station, a pilot village for integrated reform, a clean governance model village, an advanced unit of the Family Planning Association, and a national elderly-friendly community. It was also awarded the title of "National Model Civilised Village" at the Seventh National Conference on Spiritual Civilisation Construction.

6.1.2.5 Organisational Revitalisation

Air China gave full play to the leading role of Party building. It organised representatives from "Four Strong" model Party branches and Party organisations in the "Safety Chain", "Service Chain" and "Support Chain" to visit Zhaoping County, Guangxi, to exchange experience on the construction of "Four Strong" model Party branches and chain-based Party building empowerment. Representatives from grassroots Party branches in assisted areas, including the Ulan Muqir Party Branch of Sonid Right Banner and the Party Branch of General Peak Group, were invited to participate.

Taking Party building as a link, the company strengthened cooperation in breadth and depth, and promoted rural revitalisation through organisational revitalisation.

6.1.3 Targeted Local Assistance

Branch subsidiaries of Air China have carried out assistance initiatives tailored to local conditions:

l  Air China Zhejiang Branch implemented a rooftop photovoltaic assistance project in Huangyu Village, Qingyuan County, Zhejiang, to improve the local living environment and promote green energy development.

l  Air China Southwest Branch invited teachers and students from a rural primary school in Batang County, Sichuan to visit the Air China Flight Training Base for a themed summer camp, broadening students' horizons, stimulating their interest in science and injecting new momentum into local education.

6.2 Overseas Social Responsibility

Air China has actively responded to the Belt and Road Initiative, accelerated the layout of routes along the corridor, built air corridors, promoted regional connectivity and economic and trade exchanges, strengthened people-to-people bonds, and demonstrated the responsibility and commitment of a state-owned enterprise in pursuing win-win cooperation.

High-Quality Development of the Belt and Road Air Corridor

In 2025, Air China advanced high-quality Belt and Road cooperation. During the year, it launched 8 new routes under the initiative: Beijing-Vladivostok, Beijing-Irkutsk, Beijing-Cairo, Beijing-Tashkent, Beijing-Almaty, Urumqi-Tashkent, Hangzhou-Hanoi and Chengdu-Almaty.

As of the reporting period, Air China operated 74 Belt and Road-related routes covering 32 countries, with flight frequencies exceeding 2019 levels, building an aerial bridge for the national high-level "Going Global" strategy.

Youth Exchange Support

In response to President Xi Jinping's initiative on 50,000 youth exchanges between China and the United States over five years, Air China North America Headquarters signed a cooperation memorandum with the Embassy of the People's Republic of China in the United States in 2024, becoming the first airline to support the project. In 2025, it facilitated 860 young people to participate in exchange programmes.

In 2025, Air China North America Headquarters was awarded "Best Chinese Airline" by Global Traveler magazine at its 21st edition awards, and received the 2025 US-China Cooperation Impact Award of the Year issued by the US-China Chamber of Commerce.

6.3 Promoting Industry Co-development

Air China has actively carried out industry collaboration, shared resources and promoted technological interoperability, fostering a mutually beneficial and win-win development pattern in the civil aviation sector. Working with all stakeholders, it is building a sound industrial ecosystem and driving the aviation industry toward higher-quality sustainable development.

6.3.1 Participation in National and Industry Key Programmes

Promotion of Electronic Itinerary Receipts

Air China implemented the CAAC electronic itinerary project and the State Taxation Administration's requirements for fully digital invoices, advancing online application of domestic passenger ticket electronic itineraries. In September 2025, Air China successfully phased out domestic paper itineraries. In December 2025, it became the first airline in the industry to issue international electronic itineraries, winning wide recognition from the State Taxation Administration and CAAC.

Breakthrough in IATA Settlement Currency

Led and promoted by Air China, the IATA General Assembly announced in November 2025 that the Renminbi had become the eighth settlement currency for ICH. This established a direct RMB clearing and settlement channel for airlines and their partners, marking a major breakthrough for China's civil aviation in gaining currency selection rights within the IATA settlement system.

Revision of Industry Group Standards

In accordance with CAAC's 14th Five-Year Plan for Smart Civil Aviation and requirements for digitalising ticket settlement, Air China, together with the Revenue Accounting Working Committee of the China Association of Travel Services, led the revision of the group standard Settlement Measures for Excess Baggage Tickets on Routes Originating in Mainland China. The standard addresses pain points including outdated settlement rules, inconsistent documents, cross-airline through-check baggage settlement bottlenecks and agency commission disputes. The draft has been completed and a consultation version formulated.

Digital RMB Payment

In January 2025, Air China officially launched digital renminbi payment on its official mobile app, further expanding payment channels, improving service quality through digital transformation, and building a convenient, secure and diversified travel payment ecosystem.

Themed Events Commemorating the Two Aviation Uprisings

On 9 November 2025, to mark the 76th anniversary of the "Two Aviation Uprisings" and inherit the patriotic spirit, Air China held a series of themed activities: "Wings of Patriotism Soaring North - Air China C919 Re-flying the Route of the Two Aviation Uprisings". Through a special C919 flight re-tracing the historic northern route and an air-ground linked inaugural exhibition at the Tianjin Two Aviation Uprisings Memorial Hall, the events paid tribute to the patriotic feat, showcased the glorious development of Chinese civil aviation, and consolidated patriotism and love for Hong Kong.

6.3.2 External Exchanges and Cooperation

Enhancing Influence in Star Alliance

Air China secured key positions in core areas of Star Alliance, fully participated in major governance matters including the revision of core values, and led multiple alliance commercial projects, with its voice and influence continuously strengthened.

Achievements in IATA Rule-Making

Air China was elected to all management committees of the IATA Passenger Standards Conference. Its proposals on improving language barriers in IOSA were adopted and published as the world's first Chinese version of the IOSA Standards Manual on the IATA official website, achieving substantive results in international rule-making participation.

Implementation of Star Alliance Priority Projects

Key Star Alliance initiatives were launched, including paid seat selection for China-Shenzhen connecting services and the Gold Track fast-track service at Hangzhou Xiaoshan Airport, significantly improving the passenger travel experience.

Frequent Flyer Programme Cooperation

Air China actively participated in all-level Star Alliance frequent flyer programme meetings, contributed to the formulation of core value standards and rules, and further enhanced its influence in the alliance. It launched new mileage cooperation with Lufthansa CityLine, explored cross-industry mileage accumulation with rail and bus partners together with Lufthansa, advanced frequent flyer agreements with Alitalia, and discussed cooperation feasibility with Emirates.

Deepening Global Partnerships

Air China signed a memorandum of understanding with Emirates to deepen cooperation in the Middle East. It resumed and expanded code-sharing agreements with airlines including LATAM, Avianca and Air Mongolia. The number of interline partners increased to 146. Through-check services with LATAM were launched at key airports, creating a seamless travel experience.

6.4 Community Support

Relying on its professional expertise and resource advantages, Air China efficiently completed a series of major transportation support tasks. Meanwhile, the company actively fulfils community responsibilities by continuously participating in and promoting public welfare and volunteer services to deliver care and support to society.

Evacuation Mission from Iran

In June 2025, Air China dispatched two flights to successfully complete the emergency mission of evacuating Chinese citizens from Iran. With rapid response and meticulous organisation, the company relied on its mature emergency transport support mechanism to build a closely linked and fully coordinated support chain, demonstrating the responsibility of a flag carrier in serving national priorities.

Earthquake Relief Charter to Myanmar

In March 2025, following a 7.9-magnitude earthquake in Myanmar, Air China flight CA057 carried 83 members of the Chinese rescue team and nearly 22 tonnes of relief supplies - including communications equipment, search and rescue gear, medical materials and emergency food - to Myanmar for disaster relief. All support units responded quickly and collaborated efficiently to ensure the unimpeded "air lifeline".

Repatriation of Zidanku Silk Manuscripts

In May 2025, Air China flight CA818 departed from Washington, escorting four cases containing 132 precious cultural relics - Volume II The Five Elements Command and Volume III Offensive and Defensive Divination of the Zidanku Silk Manuscripts - back to China after 79 years overseas. Air China worked closely with the Chinese Embassy in the US and the National Cultural Heritage Administration to strictly control security screening, boarding, in-flight storage and supervision, using its professional transport capabilities to support Sino-US cultural heritage protection cooperation.

Transportation Support for the Chengdu World Games

In August 2025, during the Chengdu World Games, Air China Southwest Branch successfully completed flight support at Tianfu and Shuangliu airports. A total of 704 inbound and outbound flights were handled, transporting 6,056 athletes, coaches, guests and journalists, and processing 6,762 pieces of checked baggage including 242 oversized items such as kayaks, bicycles and golf bags. Professional and efficient services ensured safe, high-quality and smooth operations.

Critical Neonatal Medical Transport

In May 2025, flight CA2538 from Lhasa to Chengdu carried a 19-day-old critically ill newborn on a stretcher for medical treatment. Air China activated a special channel to provide all-round protection. The Tibet Branch coordinated airport support and liaised with the Southwest Branch and Chengdu Maintenance Branch to ensure safe ambulance transfer, successfully completing the mission.

Support for National Art Performance for Persons with Disabilities

In August 2025, Air China Hubei Branch provided support for 77 special passengers and 30 family members participating in the 11th National Art Festival for Persons with Disabilities. The branch responded promptly, assigned dedicated personnel for whole-process guidance, arranged wheelchairs as needed, and opened exclusive channels with security and other departments to achieve seamless "zero-gap" caring services.

Youth Volunteer Services at Terminals

Air China continued to carry out "Youth in Harmony with Spring Festival Travel Rush" and "Youth in Peak Season" terminal volunteer services, easing frontline operational pressure and ensuring a warm journey for passengers. In 2025, the company organised 5,160 person-times of volunteers from 31 internal and external units, providing more than 17,000 hours of service and benefiting 1.86 million passengers.

Commendation for Comrade Huang Qidong

In October 2025, Huang Qidong from Air China Inner Mongolia Company sacrificed his life while rescuing a father and son from drowning. The company held a commendation meeting to review his heroic deeds and pay tribute to the hero who served in an ordinary post. All employees were called on to learn from Huang Qidong, practice core socialist values, promote positive social energy, and demonstrate the responsibility of a flag carrier airline with concrete actions.

60th Anniversary of Safe Operation on Lhasa Route

At 10:13 on 1 March 2025, Air China flight CA4125 landed safely at Lhasa Gonggar Airport, marking the 60th anniversary of safe operation of the Lhasa route. To date, Air China has completed more than 140,000 safe take-offs and landings on the route, carried over 18 million passengers, and set a new record for safe flight duration in the world's highest-altitude region with China's most challenging civil aviation operation conditions.

"Star Project" Public Welfare Classroom

In March 2025, the Communist Youth League Committee of Shandong Airlines Group, together with the Jiyang District Communist Youth League Committee of Jinan, held the "Yi Fei Qi · Starry Plan" public welfare classroom at Renfeng Town Middle School. More than 30 volunteers from the Cabin Services Department, Flight Operations Department and other departments delivered immersive aviation knowledge lessons to over 620 rural students, explaining travel procedures, safety rules, flight principles and dispatch knowledge to broaden horizons and inspire enthusiasm for aviation.

"Breeze Companionship, Dream Voyage" Youth Volunteer Activity

In 2025, the Communist Youth League Committee of Air China Ground Service Department organised the "Breeze Companionship, Dream Voyage" youth volunteer public welfare activity. Volunteers went to the Tongxin Child-Friendly Space in Chaoyang District, Beijing, held a charity garden party and civil aviation-themed education tours, conveying care to children and sowing the seeds of hope for their future.

Outlook for 2026

At the historic juncture of the successful conclusion of the 14th Five-Year Plan period and the launch of the 15th Five-Year Plan period, Air China will continue to take serving national strategies and promoting sustainable development as its mission. Focusing on the three main themes of aviation safety, green flying, and quality service, it will map out a new chapter of high-quality development, striving to build a more resilient and responsible global aviation service benchmark.

Strengthening the Safety Foundation

The Company will continue to deepen the development of the aviation safety management system and enhance the safety responsibility awareness and capabilities of all staff. Priority will be given to the three-year campaign for addressing fundamental issues and tackling critical challenges in work safety. By leveraging big data and artificial intelligence technologies, a more precise risk early warning and prevention mechanism will be established to achieve dynamic perception and closed-loop management of risks across the end-to-end chain covering flight operations, aircraft maintenance, and ground handling. Concurrently, the emergency management system will be continuously optimised to enhance operational support and rapid recovery capabilities under complex conditions such as extreme weather, thereby ensuring the safety of passengers' lives and property as well as the smooth and orderly operation of flights, thus consolidating the safety foundation for high-quality development.

Anchoring the carbon peaking and carbon neutrality Goals

Climate resilience will be deeply integrated into the Company's long-term development planning. The Company will continue to optimise the fleet structure and route network to enhance operational energy efficiency. Building upon the implementation of the Special Action Plan for Carbon Peaking, the Company will actively explore diversified innovative approaches, including participation in carbon market mechanisms and green financial instruments, to systematically reduce the carbon footprint across the entire value chain. Concurrently, the Company will accelerate the implementation of new energy initiatives, including the electrification of ground vehicles and photovoltaic projects at terminals. The Company will deepen water resource recycling and waste reduction management. Driven by dual drivers of technological innovation and management optimisation, the Company aims to propel the aviation industry towards a more sustainable and resilient future.

Deepening Digital Empowerment

The Company will accelerate the implementation of the 15th Five-Year digital transformation strategy by constructing more intelligent platforms for operational monitoring, revenue management, and customer insights, thereby enhancing the efficiency of operational decision-making and resource synergy. The Company will continue to deepen the "Air China+" ecosystem strategy, expand the integration of diverse scenarios within the "Aviation+" framework, and leverage artificial intelligence technologies to improve capabilities in personalised service delivery and precision marketing. Concurrently, the Company is exploring the application of cutting-edge technologies to enhance data utilisation efficiency and service intelligence levels while ensuring data security. Furthermore, data compliance management within the supply chain and among partners is being deepened, while staff privacy protection awareness and capabilities are continuously strengthened to construct a robust trust barrier extending from internal operations to external stakeholders.

On this new journey, Air China will remain true to its original aspiration and steadily advance towards the vision of becoming a "world-leading airline" through its outstanding safety performance, green development practices, and intelligent travel experiences.

 

Key Performance Indicators Table*

Indicator Name	2023	2024	2025
Total assets (RMB 100 million)	3,353.03	3,457.69	3,430.47
Total actual tax paid during the year (RMB 100 million)	57.84	66.31	65.94
Number of registered aircraft (units)	905	930	964
Average aircraft age (years)	9.36	9.90	10.36
Safe flight hours (10,000 hours)	252.95	295.09	301.33
Revenue Tonne-Kilometres (RTK) (100 million)	218.87	297.43	315.69
Passengers carried (100 million passenger trips)	1.25	1.55	1.61
Cargo and mail carried (10,000 tonnes)	107.04	148.01	153.79
Purchase from the five largest suppliers (RMB 100 million)	426.84	487.80	512.77
Passengers' overall satisfaction (points)	88.4	87.9	88.1
Ground service satisfaction (points)	87	86.9	87.6
Ticket service satisfaction (points)	90.6	89.3	88.9
Cabin service satisfaction (points)	88.1	88.2	88.4
International mishandled baggage rate (pieces/1,000 passenger trips)	1.78	1.38	1.08
Domestic mishandled baggage rate (pieces/1,000 passenger trips)	0.12	0.09	0.09
Total number of passenger complaint cases from all channels (cases)	27,000	55,242	32,769
Passenger complaint handling rate (%)	100	100	100
Flight on-time performance (%)	87.94	88.07	91.78
Flight execution rate (%)	99.2	99.0	99.2
Total energy consumption (10,000 tonnes standard coal)	1,060.8	1,298.1	1,324.8
Aviation fuel consumption (10,000 tonnes)	715.7	876.61	894.9
Power consumption (MWh)	274,869.50	308,279.21	316,576.9
Gasoline consumption (tonnes)	2,276.80	2,354.78	2,237.4
Diesel consumption (tonnes)	5,830.70	5,966.68	5,374.1
Natural gas consumption (10,000 m³)	1,783.70	1,787.06	1,737.7
Thermal power (MKJ)	239,902.00	258,989.07	232,781.7
Other energy consumption (tonnes of standard coal)	36.7	45.52	41.1
Fuel consumption intensity (kg/tonne-km)	0.336	0.301	0.289
CO₂ emission intensity (g/tonne-km)	1,058.7	946.8	909.6
CO₂ emission (10,000 tonnes)	2,279.1	2,788.2	2,844.4
Office water consumption (10,000 tonnes)	526.8	542.4	505.4
Office water consumption intensity (tonnes/person)	51.2	51.7	48.9
Environmental protection investment (RMB 10,000)	38,501.0	54,199.73	68,914.8
Number of active employees (persons)	102,874	104,909	107,795
Labour contract signing rate (%)	100	100	100
Proportion of employees covered by collective bargaining agreements (%)	100	100	100
Social insurance coverage (%)	100	100	100
Work-related deaths (persons)	0	2	2
Work-related fatality rate among employees (%)	0	0.002	0.002

*¹³The financial, operational, environmental, and employee data are consistent with those used in the Annual Report.

¹⁴The total number of passenger complaints across all channels includes both complaints handled directly by the Company and those referred by the Civil Aviation Administration of China (CAAC).

HKEX ESG Indicator Index

Indicator	Details	Sections
Mandatory Disclosure Indicators
Governance	A disclosure of the board's oversight of ESG issues	1.1 ESG Governance
	The board's ESG management approach and strategy, including the process used to evaluate, prioritise and manage material ESG matters (including risks to the issuer's businesses)	1.1 ESG Governance
	How the board reviews progress made against ESG-related goals and targets with an explanation of how they relate to the issuer's businesses	1.1 ESG Governance
Reporting Boundary	A narrative explaining the reporting boundaries of the ESG report and describing the process used to identify which entities or operations are included in the ESG report. If there is a change in the scope, the issuer should explain the difference and reason for the change	About this Report
Comply or Explain Provisions
A. Environmental
Aspect A1: Emissions
General Disclosure
A1.1	The types of emissions and respective emissions data	3.3 Pollution Prevention and Control
A1.2	[Repealed on 1 January 2025]
A1.3	Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility)	3.3 Pollution Prevention and Control
A1.4	Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility)	3.3 Pollution Prevention and Control
A1.5	Description of emissions target(s) set and steps taken to achieve them	3.3 Pollution Prevention and Control
A1.6	Description of how hazardous and non-hazardous wastes are handled, and a description of reduction target(s) set and steps taken to achieve them	3.3 Pollution Prevention and Control
Aspect A2: Use of Resources
General Disclosure
A2.1	Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total (kWh in '000s) and intensity (e.g. per unit of production volume, per facility)	3.2 Sustainable Energy and Resource Utilisation
A2.2	Water consumption in total and intensity (e.g. per unit of production volume, per facility)	3.2 Sustainable Energy and Resource Utilisation
A2.3	Description of energy use efficiency target(s) set and steps taken to achieve them	3.2 Sustainable Energy and Resource Utilisation
A2.4	Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency target(s) set and steps taken to achieve them	3.2 Sustainable Energy and Resource Utilisation
A2.5	Total packaging material used for finished products (in tonnes) and, if applicable, with reference to per unit produced	Not applicable. Air China's business does not involve product manufacturing; therefore, no packaging materials are generated
Aspect A3: The Environment and Natural Resources
General Disclosure
A3.1	Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them	3.4 Environmental Management and Ecological Protection
B. Social
Aspect B1: Employment
General Disclosure
B1.1	Total workforce by gender, employment type (for example, full- or part-time), age group and geographical region	5.1 Employee Rights and Communication
B1.2	Employee turnover rate by gender, age group and geographical region	5.1 Employee Rights and Communication
Aspect B2: Health and Safety
General Disclosure
B2.1	Number and rate of work-related fatalities occurred in each of the past three years including the reporting year	2.2 Safeguarding Employee Safety
B2.2	Lost days due to work injury	2.2 Safeguarding Employee Safety
B2.3	Description of occupational health and safety measures adopted, and how they are implemented and monitored	2.2 Safeguarding Employee Safety
Aspect B3: Development and Training
General Disclosure
B3.1	The percentage of employees trained by gender and employee category (e.g. senior management, middle management)	5.2 Employee Training and Development
B3.2	The average training hours completed per employee by gender and employee category	5.2 Employee Training and Development
Aspect B4: Labour Standards
General Disclosure
B4.1	Description of measures to review employment practices to avoid child and forced labour	5.1 Employee Rights and Communication
B4.2	Description of steps taken to eliminate such practices when discovered	5.1 Employee Rights and Communication
Aspect B5: Supply Chain Management
General Disclosure
B5.1	Number of suppliers by geographical region	1.5 Sustainable Value Chain
B5.2	Description of practices relating to engaging suppliers, number of suppliers where the practices are being implemented, and how they are implemented and monitored	1.5 Sustainable Value Chain
B5.3	Description of practices used to identify environmental and social risks along the supply chain, and how they are implemented and monitored	1.5 Sustainable Value Chain
B5.4	Description of practices used to promote environmentally preferable products and services when selecting suppliers, and how they are implemented and monitored	1.5 Sustainable Value Chain
Aspect B6: Product Responsibility
General Disclosure
B6.1	Percentage of total products sold or shipped subject to recalls for safety and health reasons	Not applicable. Air China's business does not involve production
B6.2	Number of products and service-related complaints received and how they are dealt with	4.2 Enhancing Customer Experience
B6.3	Description of practices relating to observing and protecting intellectual property rights	1.6 Technological Innovation
B6.4	Description of quality assurance process and recall procedures	4.1 Quality Service Management
B6.5	Description of consumer data protection and privacy policies, and how they are implemented and monitored	4.3 Information Security and Privacy Protection
Aspect B7: Anti-corruption
General Disclosure
B7.1	Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the Reporting Period and the outcomes of the cases	1.4 Business Ethics
B7.2	Description of preventive measures and whistleblowing procedures, and how they are implemented and monitored	1.4 Business Ethics
B7.3	Description of anti-corruption training provided to directors and staff	1.4 Business Ethics
Aspect B8: Community Investment
General Disclosure
B8.1	Focus areas of contribution (e.g. education, environmental concerns, labour needs, health, culture, sport)	6.1 Rural Revitalisation 6.4 Support for the Community
B8.2	Resources contributed (e.g. money or time) to the focus area	6.1 Rural Revitalisation 6.4 Support for the Community
Climate-related Disclosures
	Governance	3.1 Addressing Climate Change
Strategy	Climate-related risks and opportunities	3.1 Addressing Climate Change
	Business model and value chain	3.1 Addressing Climate Change
	Strategy and decision-making	3.1 Addressing Climate Change
	Financial position, financial performance and cash flows	Financial impact exemption - We will further assess the financial impact of climate-related risks and opportunities in the future.
	Climate resilience	3.1 Addressing Climate Change
	Financial impacts of climate-related risks and opportunities	Reasonable data and capability exemption - In the future, we will continuously optimize the climate risk assessment tools and the cross-departmental data integration mechanism, in order to gradually improve and disclose the trade-off assessment of climate risks and opportunities, as well as the quantitative priority ranking of incorporating climate risks into the enterprise risk management system.
Risk Management	Risk management	3.1 Addressing Climate Change
Metrics and Targets	Greenhouse gas emissions	3.1 Addressing Climate Change
	Climate-related transition risks	3.1 Addressing Climate Change
	Climate-related physical risks	3.1 Addressing Climate Change
	Climate-related opportunities	Reasonable data exemption - We will enhance the methods and processes for assessing the financial impacts of climate-related risks and opportunities in our future reports.
	Capital deployment	/
	Internal carbon prices	Negative statement - The group currently does not adopt internal carbon pricing in its decision-making process, but will explore the feasibility of implementing it in the future.
	Remuneration	3.1 Addressing Climate Change
	Industry-based metrics	3.1 Addressing Climate Change
	Climate-related targets	3.1 Addressing Climate Change
	Cross-industry metrics and applicability of cross-industry metrics	Reasonable data exemption - At present, we have not disclosed any cross-industry indicators or industryspecific indicators, but we will explore their feasibility in the future.

Shanghai Stock Exchange ESG Indicator Index

Dimension	Number	Topic	Clause	Sections
Environment	1	Climate change tackling	Clause 21-28	3.1 Addressing Climate Change
	2	Pollutant discharge	Clause 30	3.3 Pollution Prevention and Control
	3	Waste disposal	Clause 31	3.3 Pollution Prevention and Control
	4	Ecosystem and biodiversity protection	Clause 32	3.4 Environmental Management and Ecological Protection
	5	Environmental compliance management	Clause 33	3.4 Environmental Management and Ecological Protection
	6	Energy usage	Clause 35	3.2 Sustainable Energy and Resource Utilisation
	7	Usage of water resources	Clause 36	3.2 Sustainable Energy and Resource Utilisation
	8	Circular economy	Clause 37	3.2 Sustainable Energy and Resource Utilisation
Social	9	Rural revitalization	Clause 39	6.1 Rural Revitalization
	10	Contributions to the society	Clause 40	6. Social Contribution
	11	Innovation-driven	Clause 42	1.6 Technological Innovation
	12	Ethics of science and technology	Clause 43	1.6 Technological Innovation
	13	Supply chain security	Clause 45	1.5 Sustainable Value Chain
	14	Equal Treatment of Micro, Small and Medium-sized Enterprises	Clause 46	1.5 Sustainable Value Chain
	15	Safety and quality of products and services	Clause 47	4.1 Quality Service Management 4.2 Enhancing Customer Experience 4.4 Service Quality Improvement
	16	Data security and customer privacy protection	Clause 48	4.3 Information Security and Privacy Protection
	17	Employees	Clause 50	5. Employee Development 2.2 Safeguarding Employee Safety
Sustainability-related Governance	18	Due diligence	Clause 52	1.3 Risk Management and Internal Control Compliance
	19	Communications with stakeholders	Clause 53	1.1 ESG Governance
	20	Anti-commercial Bribery and Anti-corruption	Clause 55	1.4 Business Ethics
	21	Anti-unfair Competition	Clause 56	1.4 Business Ethics

 

GRI Standards Index

Report Section	Corresponding GRI Standards
About this Report	2-1, 2-3, 2-4, 2-5
Message from the Chairman	/
Board ESG Statement	2-22
About Air China	2-1, 2-3
2025 ESG Core Performance	/
Sustainability Management
ESG Governance	2-2, 2-3, 2-4, 2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-15, 2-16, 2-17, 2-23, 2-24, 2-29, 3-1, 3-2, 3-3
Corporate Governance	2-2, 2-4, 2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-17, 2-18, 2-19, 2-20, 2-23, 2-24, 405-1¹⁵
Risk Management and Internal Control Compliance	2-4, 2-15, 2-23, 2-24, 2-27
Business Ethics	2-23, 2-24, 2-25, 2-26, 2-27, 205-1, 205-3, 206-1
Sustainable Value Chain	2-6, 2-23, 2-27, 203-2, 308-1, 414-1
Technological Innovation	/
Digitalisation	/
Safety Operations
Aviation Safety	Governance:416-1 Strategy: 416-1 Management of Impacts, Risks and Opportunities: 416-1 Indicators and Targets: 416-1, 416-2
Safeguarding Employee Safety	416-1
Building a Safety Culture	416-1
Low-carbon Development
Addressing Climate Change	Climate Governance: 201-2 Strategy: 201-2 Risk Management: 201-2 Key Performance Indicators and Objectives: 305-1, 305-2, 305-4, 305-5 Our Actions: 201-2
Sustainable Energy and Resource Utilisation	203-3, 302-1, 302-2, 302-4, 303-1, 303-2
Pollution Prevention and Control	Waste Gas Management: / Waste water management: 303-4, 303-5, 306-5 Waste Management: 306-1, 306-2, 306-3, 306-4, 306-5, 306-6 Noise Management: /
Environmental Management and Ecological Protection	Protection of Biodiversity: 101-1, 101-2, 101-3, 101-4, 101-5, 101-6, 101-7, 101-8 Facilitating Green Travel for Passengers: / Green Procurement: 308-1, 308-2
Quality Service
Quality Service Management	Quality Management System: 416-1, 417-1
Enhancing Customer Experience	Guaranteeing Flight Punctuality: 203-1 Response to Customer Demands: 416-1, 417-1 Responsible Marketing: 417-1, 417-2, 417-3
Information Security and Privacy Protection	Governance: / Strategy: / Management of Impacts, Risks and Opportunities: / Indicators and Targets: 418-1
Service Quality Improvement	416-1, 417-1
Employee Development
Employee Rights and Communication	Compliant Employment: 2-7, 2-8, 2-30, 401-1, 405-1, 406-1, 408-1, 409-1 Protection of Rights and Interests: 2-30, 407-1 Communication Services: 201-3
Employee Training and Development	Talent Development: 404-1 Capability Enhancement: 404-2 Promotion and Development: 404-3
Employee Incentives and Wellbeing	Remuneration Performance: 2-19, 2-20, 404-3 Welfare and Care: 201-3, 401-2, 401-3 Employee Activities: 401-2 Employee Honours: 404-2
Social Contribution
Rural Revitalisation	203-1, 203-2, 413-1
Overseas Accountability	2-28, 2-29
Promoting the Development of the Industry Together	2-28
Support for the Community	203-1, 203-2, 413-1

¹⁵For additional information regarding members of the Board of Directors, please refer to the annual report.

Applicable Policies, Regulations and Internal Systems

ESG Metrics	Applicable Laws and Regulations	Internal Policies
A1 Emissions	Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution Law of the People's Republic of China on the Prevention and Control of Water Pollution Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste Comprehensive Emission Standard for Air Pollutants Control Standard for Pollutants from Domestic Waste Incineration Comprehensive Emission Standard for Water Pollutants Technical Policy on Prevention and Control of Hazardous Waste Pollution	Air China Environmental Management Manual Waste Gas Emission Management Procedure Wastewater Discharge Management Procedure Noise Emission Management Procedure
A2 Resource Utilisation	Water Law of the People's Republic of China Energy Conservation Law of the People's Republic of China Measures for the Administration of Energy Conservation by Key Energy-Using Units	Regulations on Water Use Management
A3 Environment and Natural Resources	Environmental Protection Law of the People's Republic of China Law of the People's Republic of China on Environmental Impact Assessment Law of the People's Republic of China on Water and Soil Conservation	Air China Environmental Management Manual
Climate Change	The 14th Five-Year Plan of the State China's Policy and Actions on Climate Change 2024 Annual Report The 14th Five-Year Plan for Green Development of Civil Aviation	Special Action Plan for Carbon Peaking Measures for the Assessment and Rewards and Punishments on Energy Conservation and Ecological Environmental Protection Work Green Development and carbon peaking and carbon neutrality Key Tasks List
B1 Employment	Labour Law of the People's Republic of China Labour Contract Law of the People's Republic of China Employment Promotion Law of the People's Republic of China	Regulations on Employee Recruitment Management Collective Agreement Special Collective Contract on the Protection of Rights and Interests of Female Employees Provisions on the Administration of Labour Contracts Employee Post Performance Management Measures List of Matters for Deliberation by the Employees' Congress and the Joint Meeting of Delegation Heads
B2 Health and Safety	Work Safety Law of the People's Republic of China Civil Aviation Law of the People's Republic of China Measures for the Supervision and Administration of Work Safety in Central Enterprises Regulations on Civil Aviation Safety Management Law of the People's Republic of China on Prevention and Control of Occupational Diseases Provisions on the Administration of Occupational Health in the Workplace Notice of the General Office of the National Health Commission on Further Strengthening Occupational Health Training for Employers Regulations on Work-Related Injury Insurances	Emergency Response Manual Emergency Management Manual Emergency Response Management Procedure for Safety-Related Incidents (Trial Version) Procedures for the Dual Prevention Mechanism of Risk Grading Control and Hidden Danger Investigation and Governance Flight Schedule Adjustment Procedure Domestic Flight Temporary Diversion Coordination Mechanism Flight Traffic Management Post Workflow Measures for the Administration of Flight Punctuality Detailed Rules on Information Reporting for Major Emergencies of CNAHC and Air China Aviation Security Programme Implementation Plan for the Three-Year Action on Fundamental Governance and Tackling of Safety Production Issues of CNAHC(2024-2026) Aviation Safety Management Manual Aircraft Safety Management Training Syllabus Provisions on the Administration of Occupational Disease Prevention and Control of CNAHC and Air China Notice on Optimising the Processing Procedures for Work-Related Injury Insurance Employee Health Examination Management System Occupational Health Management Manual
B3 Development and Training	Notice on Deepening the Reform of Market-Oriented Assessment and Incentive Mechanisms	Training Management Manual Notice on Establishing the Professional Qualification and Competency Level System for Air China's Technical Expertise and Vocational Skills Talent Outline of Compliance Training Training Syllabus on Work Style for All Practitioners Management Measures for the Assessment and Appointment of Professional Talents
B4 Labour Standards	Labour Law of the People's Republic of China Labour Contract Law of the People's Republic of China Employment Promotion Law of the People's Republic of China Law of the People's Republic of China on the Protection of Rights and Interests of Women	Code of Conduct for Employees Provisions on Penalties for Violations of Labour Discipline
B5 Supply Chain Management	Tendering and Bidding Law of the People's Republic of China Regulations on the Implementation of the Bidding and Tendering Law of the People's Republic of China Civil Code of the People's Republic of China	Provisions on Procurement Management of CNAHC and Air China Standard Procurement Management Procedures of CNAHC Procedures for the Management of Procurement Plans of CNAHC and Air China Procedures for Supplier Management of CNAHC and Air China Procurement Review Management Regulations of CNAHC and Air China Notice on Promoting Green Procurement
B6 Product Responsibility	Cybersecurity Law of the People's Republic of China Personal Information Protection Law of the People's Republic of China Trademark Law of the People's Republic of China Regulations for the Implementation of the Trademark Law of the People's Republic of China Patent Law of the People's Republic of China Implementing Regulations of the Patent Law of the People's Republic of China General Data Protection Regulation (GDPR) Data Security Law of the People's Republic of China Copyright Law of the People's Republic of China The Madrid Agreement Concerning the International Registration of Marks	Service Quality Management Manual Service Quality Inspection Management Procedure Service Quality Risk and Hidden Danger Management Procedure Procedures for the Management of Service Quality Prevention and Corrective Actions Service Supervision Work Management Regulations Operational Guidelines for Product and Service Compensation and Damages Air China Limited Flight Punctuality Reward and Penalty Management Measures Air China Flight Operation Support Standards Air China Flight Punctuality Management Measures Special Passenger Service Operating Procedures Service Recovery Authorisation Management Procedure Complaint Management Procedure Management Procedure for Passenger Satisfaction Survey Data Management Regulations Implementation Rules for Data Security Management Measures for the Administration of Cyber Security Provisions on the Administration of Passenger Personal Information Digital Transformation Action Plan (2022-2025) Special Implementation Plan for the Digital Transformation Action Plan Provisions on the Administration of Legal Affairs of CNAHC and Air China Intellectual Property Management Measures of CNAHC and Air China
B7 Anti-corruption	Criminal Law of the People's Republic of China Company Law of the People's Republic of China Anti-Money Laundering Law of the People's Republic of China Anti-Unfair Competition Law of the People's Republic of China Provisional Regulations on Prohibiting Commercial Bribery Anti-Monopoly Law of the People's Republic of China Tendering and Bidding Law of the People's Republic of China Supervision Law of the People's Republic of China Rules on Handling Accusations and Complaints by Discipline Inspection and Supervision Organs Provisions of the Supreme People's Procuratorate on Protecting Citizens' Right to Report Securities Law of the People's Republic of China Corporate Governance Guidelines for Listed Companies Guidelines on Anti-Monopoly Compliance for Undertakings Regulations on Fair Competition Review	Compliance Management Regulations of CNAHC and Air China Code of Conduct for Compliance of CNAHC and Air China Overseas Compliance Management Measures of CNAHC Procedures for Overseas Compliance Management of Air China Overseas Compliance Training Manual (Chinese and English Versions) Measures for the Administration of Audit Rectification Tracking of CNAHC and Air China Summary Table of Integrity Risk Prevention and Control Measures for Key Areas Detailed Rules on the Handling of Letters and Visits by Discipline Inspection and Supervision Organs (Trial) Training and Education Plan for Inspection and Patrol Cadres (2023-2027) Rules of Procedure for the Board's Strategy and Investment Committee Rules of Procedure for the Audit and Risk Control Committee (Supervision Committee) Implementation Measures of CNAHC on High-Standard Fulfilment of Social Responsibilities in the New Era Articles of Association Rules of Procedure for Shareholders' General Meetings Rules of Procedure for Board Meetings Rules for the Work of Independent Directors Guidelines for the Articles of Association of Subsidiary Enterprises Rules of Procedure for the President's Office Meeting Comprehensive Risk Management Regulations of CNAHC and Air China Implementation Rules for Risk Assessment and Reporting of CNAHC and Air China Risk Management Measures for Major Matters of CNAHC and Air China Manual for Internal Control Supervision and Evaluation
B8 Community Investment		Management Measures for External Donations Implementation Opinions on Effectively Carrying Out Targeted Assistance Work Constitution of the Youth Volunteer Association Regulations on Youth Volunteer Services Management Measures for the 'CNAHC Blue Sky Classroom' Volunteer Teaching Project

Third-Party Assurance

Independent Verification Statement

To the management and stakeholders of Air China Limited, 

TÜV SÜD Certification and Testing (China) Co., Ltd. (hereinafter referred to as "TÜV SÜD") has been engaged by Air China Limited (hereinafter referred to as "Air China" or "the Company") to perform an independent third-party verification on its 2025 Sustainability & ESG Report (hereinafter referred to as "the Report"). During this verification, TÜV SÜD's verification team strictly abided by the contract signed with Air China and provided verification regarding the Report in accordance with the provisions agreed by both parties and within the authorized scope stipulated in the contract.

This Independent Verification Statement is based on all the data and information collected by Air China and provided to TÜV SÜD. The scope of verification is limited to the given data and information. Air China shall be held accountable for the authenticity and completeness of the provided data and information (contains assumptions, projections, and/or historical facts).

Scope of Verification

Time frame of this verification:

❖ The Report contains the data disclosed by Air China during the reporting period from January 1st, 2025 to December 31st, 2025, including environmental, social and governance data and information, methods for management of material issues, actions/measures and the Company's sustainability performance during the reporting period.

Physical boundary of this verification:

❖ The on-site verification sampling took place at below listed location:

Air China headquarter, No. 30, Tianzhu Road, Airport Industrial Zone, Shunyi District, Beijing, China.

Scope of data and information for the verification:

❖ The scope of verification is limited to the data and information of Air China and all companies under its operational control covered by the Report.

The following data and information are beyond the scope of this verification:

❖ Any relevant data and information beyond the reporting period;

❖ The data and information of Air China's suppliers, partners and other third parties; and

❖ The financial data and information disclosed in the Report that have been audited by an independent third party are not verified again herein.

Limitations

❖ The verification process is conducted in the above scope. Sampling and verification are adopted for the data and information in the Report by TÜV SÜD, and only the stakeholders within the Company are interviewed; and

❖ The Company's standpoint, opinions, forward-looking statements and predictive information as well as the historical data and information before January 1st, 2025 are beyond the scope of this verification.

❖ The verification conclusions are based on the analysis of the data and information collected by TÜV SÜD and may not identify all problems and conditions, nor constitute any guarantee of the credibility or status of the subject of verification.

Verification Methodology

This verification process was conducted by TÜV SÜD's expert team with extensive experience in environmental, social and governance and other relevant areas and drew the conclusions thereof. The verification conforms to the following requirements: 

❖ AA1000 Assurance Standard v3, Type2, Moderate Assurance

❖ Sustainability Report Verification Operation Rule (CCB_EIV_GR_002E Rev04)

In order to perform adequate verification in accordance with the contract and relevant assurance standards,  and provide reliable verification for the conclusions, the verification team conducted the following activities:

❖ Preliminary investigation of the relevant information before on-site verification;

❖ Confirmation of the presence of the topics with high level of materiality and performance in the Report;

❖ On-site verification review of all supporting documents, data and other information provided by Air China; tracing and verification of key performance information;

❖ Special interview with the representative of Air China's management; and held interviews with the employees related to collection, compilation and reporting of the disclosed information; and

❖ Other procedures deemed necessary by the verification team.

Verification Conclusions

According to the verification, we believe that the data and information presented in Air China's report are objective, factual and reliable, without systematic problems.

The verification team has drawn the following conclusions on this Report: 

Inclusivity	Air China has identified the internal and external stakeholders such as government/domestic and overseas regulatory authorities, shareholders, customers, employees, partners/suppliers, peers, community, media, etc., and established a stakeholder communication mechanism to collect the demands of stakeholders on a regular basis.
Materiality	Air China has established the prioritization process of material topics determination, identified and assessed the priority of the sustainability topics which are highly related to the industry, the Company disclosed the strategy, management approach as well as sustainability performance in corporate operation, therefore the Report's adherence to materiality principle is guaranteed.
Responsiveness	Focusing on the topics of concern to stakeholders, Air China clearly disclosed its management methods and performance on high material topics such as climate change response and carbon reduction, flight safety, information security and privacy protection, sustainable use of energy and resources, etc. and established a communication mechanism to fully respond to the demands and expectations of stakeholders.
Impact	Air China's Board of Directors serves as the highest governance and decision-making body for ESG matters, overseeing and approving short-, medium-, and long-term ESG strategies as well as the formulation and implementation of related policies. The Company has implemented a process of some high material topics impact assessment, based on a comprehensive and balanced understanding, it has measured the impacts of these topics on stakeholders and the organization itself, and disclosed relevant impact in the Report to an appropriate extent.

Recommendations on Continuous Improvement

❖ The verification team has passed the improvement proposal to the management of Air China during

the on-site verification process.

Statement on Independence and Verification Capability

TÜV SÜD is a trusted partner of choice for safety, security and sustainability solutions. It specializes in testing, certification, auditing and advisory services. Since 1866, the company has remained committed to its purpose of enabling progress by protecting people, the environment and assets from technology-related risks. Today, TÜV SÜD is present in over 1,000 locations worldwide with its headquarters in Munich, Germany. Through expert teams represented by more than 28,000 employees, it adds value to customers and partners by enabling market access and managing risks. By anticipating technological developments and facilitating change, TÜV SÜD inspires trust in a physical and digital world to create a safer and more sustainable future. 

TÜV SÜD Certification and Testing (China) Co., Ltd is one of TÜV SÜD's global branches and has an expert team whose members have professional background and rich industrial experiences.

TÜV SÜD and Air China are two entities independent of each other and both TÜV SÜD and Air China and their branches or stakeholders have no conflict of interest. No member of the verification team has business relationship with the Company. The verification is completely neutral. All the data and information in the Report are provided by Air China. TÜV SÜD has not been involved in preparation and drafting of the Report, except for the verification itself and issuance of this Independent Verification Statement.

Wenjun Zhu                                                

TÜV SÜD Certification and Testing (China) Co., Ltd.  Technical Certifier

Shanghai, China, March 20th, 2026

Note: In case of any inconsistency or discrepancy, the simplified Chinese version "Independent Verification Statement" of this verification statement shall prevail, while the English translation is used for reference only.

Reader Questionnaire

Dear Reader:

Hello! Thank you for reading the 'Air China Limited 2025 Sustainability and ESG Report'. This is the eighteenth social responsibility (ESG) report publicly issued by Air China to society. We are most willing to listen to and accept your comments and suggestions on this report so that we may improve our future reports.

In the course of our ongoing efforts to improve and enhance corporate social responsibility (ESG) management and practices, we sincerely welcome your valuable feedback and suggestions.

1. Are you satisfied with the overall report?

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2. Is the information you have highlighted fully reflected in the report?

□ Very Good □ Good □ Average □ Poor

Do you consider that the report accurately reflects Air China's performance in fulfilling its responsibilities regarding economic value creation, social value contribution, and environmental value stewardship?

□ Excellent □ Good □ Average □ Poor

4. Is the information of your concern readily accessible within the report?

□ Very Good □ Good □ Average □ Poor

Do you consider the information disclosed in this report to be accurate, clear and complete?

□ Very Good □ Good □ Average □ Poor

What are your views and suggestions regarding our future social responsibility (ESG) work and reporting?

 

END