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2024 Sustainability & ESG Report

24th Apr 2025 07:56

RNS Number : 0262G

Air China Ld

24 April 2025

Air China Limited

2024 Sustainability & ESG Report

Contents

About this Report........................................................................................................ 4

Chairman's Statement................................................................................................. 6

ESG Statement from Board of Directors.................................................................... 9

Milestones in Air China's C919 Introduction........................................................... 10

About Air China........................................................................................................ 10

Highlights of ESG Performance in 2024................................................................... 15

Honors and Awards................................................................................................... 16

Response to UN 2030 Sustainable Development Goals (SDGs)................................ 17

1. Sustainable Development Management.............................................................. 22

1.1 ESG Governance System............................................................................. 22

1.2 Stakeholder Communication........................................................................ 24

1.3 Materiality Determination........................................................................... 27

1.4 Corporate Governance................................................................................ 28

1.5 Risk Management........................................................................................ 31

1.6 Anti-Corruption and Business Ethics.......................................................... 35

1.7 Responsible Supply Chain............................................................................ 38

1.8 Innovation-driven Development.................................................................. 40

1.9 Intellectual Property Rights Protection...................................................... 41

1.10 Equal Treatment of Small and Medium Enterprises.............................. 41

1.11 Digital Transformation........................................................................... 41

2. Safety Operations............................................................................................... 44

2.1 Safety Management..................................................................................... 44

2.2 Safeguarding Passenger Safety................................................................... 49

2.3 Safety Culture.............................................................................................. 51

3. Low-carbon Development................................................................................... 52

3.1 Environmental Management and Ecological Protection............................ 52

3.2 Addressing Climate Change........................................................................ 54

3.3 Resource Utilization..................................................................................... 64

3.4 Pollution Prevention..................................................................................... 66

4. Quality Service.................................................................................................... 71

4.1 Service Quality Management...................................................................... 71

4.2 Customer Experience Enhancement............................................................ 72

4.3 Quality Enhancement................................................................................... 76

5. Employee Development....................................................................................... 80

5.1 Employment and Employees' Rights and Interests..................................... 80

5.2 Employee Training and Development......................................................... 82

5.3 Occupational Health and Safety.................................................................. 86

5.4 Incentives and Care..................................................................................... 88

6 Social Contribution............................................................................................. 92

6.1 Rural Revitalization..................................................................................... 92

6.2 The Belt and Road Initiative and Industry-wide Co-building..................... 96

The route network layout statistics cover Air China, Beijing Airlines, Dalian Airlines, and Inner Mongolia Airlines...................................................................................................... 96

6.2.1 Jointly Promoting Industry Development................................................ 96

6.3 Supporting the Community.......................................................................... 99

Outlook for 2025..................................................................................................... 104

Table of Major Indicators*............................................................................. 105

HKEX ESG Indicator Index............................................................................ 107

GRI Index......................................................................................................... 111

Shanghai Stock Exchange Index...................................................................... 115

Major Laws, Regulations and Corporate Policies.......................................... 117

Third-Party Assurance.................................................................................... 127

Feedback Collection......................................................................................... 129

About this Report

This Report highlights Air China's significant achievements in implementing the strategic directives of the Party Central Committee, embodying the spirit of the 20th National Congress of the Communist Party, and fulfilling the social responsibility requirements set by the State-owned Assets Supervision and Administration Commission. It demonstrates that the Company fully leverages the advantages of the core aviation business, continuously strengthens sustainable development management, and takes on responsibilities and actions in key areas such as aligning with national strategies, ensuring safe development, responding to climate change, practicing low-carbon development, improving product accountability, emphasizing on digital transformation and innovation, paying attention to employee development, and focusing on community welfare.

§ Reporting Period

This report covers the period from 1 January to 31 December in 2024. To enhance the comparability and completeness of the report, some content in this Report appropriately reflects the achievements of the 2025 work.

§ Scope of the Report

This report is primarily about Air China Limited, but also involves its branches, operating units, supporting units, and main subsidiaries such as Aircraft Maintenance and Engineering Corporation (Ameco), Shenzhen Airlines Company Limited (Shenzhen Airlines), Shandong Aviation Group Company Limited (Shandong Aviation Group Corporation), Beijing Airlines Co., Ltd. (Beijing Airlines), Dalian Airlines Co., Ltd. (Dalian Airlines), and Air China Inner Mongolia Co., Ltd. (Inner Mongolia Airlines).

§ Basis of Preparation

This Report is prepared in accordance with relevant requirements, including the Guiding Opinions on Central Enterprises' High Standards in Fulfilling Social Responsibilities in the New Era and the Research on the Preparation of ESG Special Reports for Central Enterprises Holding Listed Companies issued by the State-owned Assets Supervision and Administration Commission, the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies-Sustainability Report (Trial) and the Appendix C2 Environmental, Social, and Governance Reporting Guide of the Main Board Listing Rules of the Hong Kong Exchanges and Clearing Limited (HKEX), with reference to standards and requirements such as the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) of the Global Sustainability Standards Board (GSSB), GB/T36001 Guidance on Social Responsibility Reporting and other supplementary guidelines for the aviation service industry.

§ Release Cycle

This is our 17th annual social responsibility and sustainability report. The Chinese version of the previous year's report is released in March each year, and the English version is released in April.

§ Sources of Data

All the financial data referred to in this report, applying to China Accounting Standards for Business Enterprises, is extracted from the audited annual reports of Air China Limited, while the other data comes from official internal documents and relevant statistics of Air China Limited.

§ Abbreviations

In this Report, "the Company", "Air China" or "we" refers 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.

§ Report Principles

Quantitativeness: We have established standardized ESG indicator management tools, encompassing support departments at headquarters, business management units, branches, and key subsidiaries. We conduct regular statistics and disclosures on quantitative key indicators, including all "Environmental" and "Social" areas specified in the reporting guidelines. For the "Environmental" data presented in this report, we provide detailed calculation methods and reference standards in the corresponding sections.

Consistency: There is no significant adjustment in the disclosure scope of this Report compared with previous years' reports, and a consistent disclosure statistical method is used.

Materiality: To prepare this Report, an issue materiality assessment process was carried out to determine the disclosure content of the report and the level of detail of the content of each issue.

§ Accessibility of the Report

This report is prepared in both Chinese and English and should there be any discrepancy in meaning between the two versions, the Chinese version shall prevail. Electronic copies of this report in both Chinese and English are also available for downloading from the Company's website. If you wish to acquire a printed version or raise suggestions and/or comments on this report, please contact us at:

Website: www.airchina.com.cn

Address: No. 30, Tianzhu Road, Airport Industrial Zone, Shunyi District, Beijing, China

Contact unit: Office of the Board

Tel: 86-10-61462152

Email: [email protected]

Chairman's Statement

The year 2024 marks the 75th anniversary of the People's Republic of China and is a pivotal year for achieving the objectives of the 14th Five-Year Plan. Under the guidance of Xi Jinping's Thoughts on Socialism with Chinese Characteristics for a New Era, our Group has resolutely implemented the principles of the 20th National Congress of the Communist Party of China (CPC), as well as the directives from the Second and Third Plenary Sessions of the 20th CPC Central Committee. In alignment with the strategic decisions of the CPC Central Committee and the State Council, we have focused on enhancing core functions and competitiveness, upheld the Party's comprehensive leadership, deepened reforms, and pursued high-quality development. By conscientiously fulfilling our economic, political, and social responsibilities as a flag carrier, we have achieved new milestones. These accomplishments represent significant strides toward building a world-class enterprise.

Upholding the flag carrier's mission and ensuring "two absolute safeties". We have rigorously implemented President Xi Jinping's directives on production safety and civil aviation, ensuring the Company's safe and stable operations through concrete actions. A dedicated plan to enhance production safety has been formulated, launching a three-year initiative for fundamental improvements. We have conducted thorough self-examinations to identify and rectify major safety risks, striving to eliminate hazards proactively. Continuous advancements have been made in five key areas: safety management, flight training, aircraft maintenance, operational oversight, risk identification, and hidden hazard investigation. These efforts have reinforced our safety foundation and enhanced our overall safety capabilities. We have strengthened operational coordination and maintained strict control over safety processes to ensure seamless alignment between flight operations and support capabilities. In 2024, our Group achieved 2.95 million hours of safe flight, a 17% year-on-year increase, successfully executing critical charter missions and major aviation transport tasks, including those for the Paris Olympics, the Forum on China-Africa Cooperation, and the evacuation of Chinese nationals from Lebanon.

Driving efficiency up and elevating operational performance. With a concerted focus on efficiency, our Group has achieved both quantitative growth and qualitative improvements in operations. By leveraging existing resources while expanding new opportunities, we have increased effective investment, reaching 356.1 billion available seat kilometers for the year, a 22% year-on-year growth. A new aircraft resource management mechanism has been established to maximize fleet utilization, leading to improved daily aircraft usage rates. We have intensified marketing innovations, introduced a quarterly product release mechanism, refined inbound tourism offerings, and organized a series of events, including the 30th anniversary of "Phoenix Miles", further expanding our brand influence. Amid intensifying industry competition, we have reinforced revenue management, maintaining a leading revenue position. Comprehensive profit management and cost control initiatives have been implemented, financing channels have been expanded, and refined financial management has yielded notable results.

Enhancing service quality and offering world-class services. Anchored in the service philosophy of "Customer Orientation, Problem Orientation, Value Orientation", we have concentrated resources on establishing a dedicated customer service center, further refining a professional service management system. Key systems, including real-time passenger service notifications and in-flight meal pre-ordering, have been launched, steadily advancing digital service capabilities. A robust customer service mechanism has been developed to better understand customer needs, design and deliver tailored products and enhance customer value. Additionally, we have prioritized employee well-being, fostering professional growth and career development through enhanced training programs and expanded promotion pathways, creating a dynamic platform for employees to showcase their talents and contribute to the long-term growth of both the Company and its workforce.

Advancing green development and fostering new quality productive forces. We remain committed to green development and ecological sustainability, actively implementing a comprehensive green development action plan. Recognizing the risks and opportunities posed by climate change, we have strategically planned our greenhouse gas emission reduction efforts in line with national carbon neutrality goals. We have deepened green operations, fulfilled our environmental responsibilities, and safeguarded biodiversity. Focused on energy conservation and waste reduction, we have launched initiatives to reduce plastic usage and minimize waste, adopting a low-carbon and eco-friendly resource management strategy. These efforts are steering us toward becoming a resource-efficient and environmentally friendly green aviation enterprise.

Fulfilling the responsibilities of a central enterprise and serving the "major national cause". We firmly support the development of domestically produced commercial aircraft, achieving new milestones in the large-scale operation of China's homegrown airliners. The C909 and C919 aircraft, proudly flying the national flag, now soar through the skies, and we aspire to be the world's first operator of the C929. International route expansion has also progressed steadily, with a particular emphasis on restoring and developing routes related to the "Belt and Road Initiative", having connections to 29 countries along the "Belt and Road Initiative" through 65 routes. Additionally, we have actively implemented the CPC Central Committee's rural revitalization strategy, optimizing the "aviation+" assistance model. Our efforts have focused on five key revitalization areas-industry, talent, culture, ecology, and organization - providing dedicated support to Zhaoping County in Guangxi and Sonid Right Banner in Inner Mongolia. Our targeted poverty alleviation efforts have earned the highest rating from the State-owned Assets Supervision and Administration Commission (SASAC) for seven consecutive years.

Strengthening the guidance of Party building and boosting the effectiveness of corporate governance. We have upheld high-quality guidance of Party building as a cornerstone for ensuring high-quality development, steadfastly embracing our responsibilities as a flag carrier. By implementing the "Two Consistencies" principle, we have reinforced Party leadership throughout our corporate governance structure. Organizational optimization in key areas has been systematically advanced, strengthening leadership pipelines and invigorating our workforce. We remain unwavering in our commitment to rigorous Party governance, fostering a transparent and upright corporate environment that provides a strong foundation for high-quality development and our journey toward becoming a world-class enterprise.

As 2025 marks the concluding year of the 14th Five-Year Plan and a pivotal transition to the 15th Five-Year Plan, our Group will adhere to the principle of steady progress and continuously advance sustainable development. Through concrete actions, we will fulfill corporate responsibilities and meet public expectations. By advancing high-quality development and accelerating our journey toward becoming a world-class enterprise, we are dedicated to contributing even more to national strength and the rejuvenation of the Chinese nation.

Ma Chongxian

Chairman

Air China Limited

ESG Statement from Board of Directors

Air China's Board of Directors is the highest responsible and decision-making body for ESG affairs. It integrates the concept of sustainable development into the decision-making process for the Company's major issues, listens to reports from ESG implementation units during regular communication meetings, and supervises ESG-related matters that may impact the Company's operations, shareholders, and other stakeholders. This ensures alignment between ESG principles and corporate strategies. The Board is responsible for approving the outcomes of stakeholder communications and significant agenda deliberations, as well as for reviewing and approving the Company's Sustainability and ESG reports.

The Board of Directors has incorporated material ESG risks into the Company's overall risk assessment and management framework, formulating response plans for major ESG risks, their likelihood, impact, and risk trends. The Board of Directors has also reviewed and approved the results of the ESG risk assessment and the response plans, providing guidance and recommendations.

The Board has established a Corporate Social Responsibility (CSR) Leadership Panel, which is responsible for formulating and reviewing the Company's social responsibility (ESG) strategy, goals, and annual work plan, and for reporting to the Board of Directors. The Office of the CSR Leadership Panel, as the primary executing body of Air China's CSR work, is responsible for implementing and executing social responsibility work plans.

In 2024, the Company continued to enhance its ESG work mechanism in compliance with the Regulatory Requirements of the SASAC of the State Council on Improving the Quality of Listed Companies Held by State-owned Enterprises, the Shanghai Stock Exchange's Guidelines No. 14 for Self-Regulation of Listed Companies-Sustainability Report (Trial), and other relevant regulations. The Company actively explored the establishment of a scientific and systematic ESG management system, comprehensively improving ESG governance capabilities and risk management levels to promote harmonious development in the economy, environment, and society.

This report fully disclosed the progress and outcomes of Air China's ESG work in 2024, which was reviewed and approved by the Board of Directors on March 27, 2025.

Milestones in Air China's C919 Introduction

The C919 is China's first mainline jetliner independently developed under internationally recognized airworthiness standards and equipped with proprietary intellectual property rights. As a world-class narrow-body commercial aircraft, it meets the latest certification requirements, incorporates cutting-edge manufacturing technologies, and boasts a completely new design.

Since signing the Customer Agreement on the C919 Launch with Commercial Aircraft Corporation of China Ltd. (COMAC) in November 2010, Air China has fulfilled its responsibilities by actively participating in preparations for the C919's commercial operations. The Company has witnessed the aircraft's evolution from concept to reality. To ensure a successful commercial debut, Air China ordered 100 C919 aircraft, established a dedicated fleet, and provided specialized training for staff in all relevant positions. Following the C919's official delivery and launch, Air China has earned widespread passenger recognition and trust through its professional flight crews, exceptional service, and efficient operational management.

With the future delivery and operation of more C919 aircraft, Air China will further strengthen its competitiveness in the air transportation market. The C919 has not only diversified Air China's fleet but also enhanced the coverage and efficiency of its route network. Moreover, the aircraft will enable Air China to achieve significant progress in energy conservation, emissions reduction, and green aviation practices.

Date	Milestone
November 2010	Air China signed an agreement with COMAC for the C919 launch, becoming one of the aircraft's early users.
May 5, 2017	The C919 successfully completed its maiden flight.
April 26, 2024	Air China ordered 100 C919 aircraft.
May 21, 2024	Air China established the C919 Fleet under the Seventh Flight Squadron of the Flight Crew Department for C919 operations.
July 2024	Air China staff completed COMAC's training, laying a solid foundation for the official launch of C919 operations.
August 9, 2024	Air China's first C919 aircraft conducted a test flight in Shanghai, signaling its upcoming introduction to commercial service.
August 28, 2024	COMAC officially delivered Air China's first C919 aircraft.
August 29, 2024	Air China's first C919 aircraft arrived in Beijing, gearing up for subsequent route operations.
September 5, 2024	Air China's first C919 aircraft underwent local flight training in Datong and successfully validated emergency evacuation procedures, thereby enhancing the crew's emergency response skills.
September 10, 2024	Air China's C919 aircraft embarked on its first commercial flight from Beijing to Shanghai, marking its official entry into commercial operations.

About Air China

1. Company Profile

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 only flag-carrier civil aviation company in China, and a member of the world's largest airline alliance Star Alliance, and the official aviation transportation partner of the 2008 Beijing Olympics and Paralympics and the 2022 Beijing Winter Olympics and Paralympics. Air China takes the lead among domestic airlines in passenger transportation and other related services, providing important international and domestic transportation services such as emergency flights, and charter flights for VIPs and leaders of foreign countries. In 2024, according to the assessment of the World Brand Lab, Air China achieved a brand value of RMB 259.695 billion, the highest in the domestic aviation service industry.

2. Structure

In 2024, Air China initiated a comprehensive organizational reform, focusing on key areas essential for high-quality development. By prioritizing the reform of its organizational structure and leadership management system, Air China aimed to foster a new production relationship, thereby strengthening its efforts to achieve the strategic goal of becoming a world-class airline.

Air China Limited

Branches

Southwest Branch

Zhejiang Branch

Chongqing Branch

Tianjin Branch

Shanghai Branch

Xinjiang Branch

Hubei Branch

Guangdong Branch

Guizhou Branch

Tibet Branch

Wenzhou Branch

Stations Management Department

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 Marshall Department

Centralized Procurement Department

Special Flight Office

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

Labor Union Office

Party Affairs Department / Corporate Culture Department

Office of the Party Committee's Anti-Corruption Leading Group

Discipline Inspection 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

Adhering to the "Comprehensive Safety" Approach and Advancing the Development of Safety Supervision Structures

We have renamed the Safety Management Department to the Safety Supervision Department and strengthened the work safety management system under the principle of "comprehensive horizontal and vertical coverage". Safety areas such as flight, air defense, traffic, fire, network, data, confidentiality, and engineering have been integrated into the full cycle of production and operations. These measures aim to eliminate major safety risks at the root and establish a sustainable safety framework.

Embracing Innovation-driven Development and Advancing the Transformation of Our Digital Organizational System

We have established a Digital Transformation Office with a clear mandate to integrate management and operations, bridge existing and new systems, and separate construction from utilization processes. Additionally, we have reinforced project-based and market-driven mechanisms and implemented a top-down accountability framework. Through a series of reform initiatives, we have concentrated resources to accelerate the successful implementation of digital transformation.

Putting People at the Centre and Propelling Reforms in the Customer Service System

We have established a top-tier Customer Service Centre to consolidate service resources, centralize service channels and product offerings, and enhance the end-to-end customer experience.

we have refocused the Commercial Committee on marketing management to accelerate the transformation of our marketing model, strengthen collaboration between marketing and service teams, and reinforce comprehensive revenue accountability.

Staying Committed to Brand Value Leadership and Propelling Reforms in the Brand Management System

We have consolidated brand, quality, and product service management under the Brand and Quality Management Department. Embracing a quality-centric philosophy, we have established a brand management system characterized by "unified governance, horizontal collaboration, and vertical coordination". This integration has strengthened alignment between branding and production/operations, enhanced global brand communication and influence, and propelled the Company's high-quality development.

Precisely Identifying the "National Priorities" and Promoting Optimization of the Policy Research System

We have consolidated policy research functions under the Administration Office, strengthened our policy analysis capabilities, and provided robust support for the Company's critical decision-making.

The Strategy and Development Department has overseen strategic planning and reform initiatives, streamlining the process from planning to execution to ensure seamless coordination and sustained progress in reform and development.

3. Fleet Structure

As of the end of 2024, the Group had a total of 930 aircraft, the average age of which was 9.90 years.

Aircraft type	Model	Quantity
Airbus	A320	349
	A330	54
	A350	30
Boeing	B737	405
	B747	10
	B777	28
	B787	14
COMAC	C909	33
COMAC	C919	3
Business jets	Business jets	4
Total		930

4. Route Network

As of the end of 2024, the Group operated 657 domestic routes, 190 international and regional routes, and served 45 countries and regions.

5. Philosophy 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

6. 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 fights linkage strategy	Stable and steady profiting capability	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 service
	Value-driven brand capability	Achieving a breakthrough in the aviation cargo logistics development
		Entering a new stage of innovation-driven digital development
		Demonstrating a new achievement in green and low-carbon development
		Making new results in integrated industrial development

Major Development Goals during the "14th Five-Year Plan" Period

Annual Targets

Passenger carried: 167 million person-times

Passengers' overall satisfaction (points): 83.5

Accountable incidents rate of air transportation per 10,000 flight hours < 0.11

Maintaining strategic resolve and strengthening confidence and determination to overcome difficulties

Ø We have completed the equity restructuring of Shandong Aviation Group Corporation, with the fleet size now ranking among the top globally.

Ø We have focused on five key areas: route network, revenue management, customer resources, marketing organization, and ground support. Further efforts were made to enhance intensive control, deepen coordinated development, and optimize refined management, resulting in significant improvements in development quality and efficiency.

Upholding the bottom line of safety production and ensuring high-quality development with high-level safety

Ø We tracked and assessed phased safety risks during the rapid recovery period of flight operations, comprehensively strengthened flight operation monitoring, and ensured a safe and orderly resumption of flights.

Ø We have maintained a "zero tolerance" stance toward investigating and rectifying safety hazards. All PW1100G engines were immediately grounded and inspected to eliminate risks at the earliest stage.

Ø We have established a long-term safety culture mechanism centered on the "Three Respects" principle. Additionally, we achieved a "double decrease" in both the incident rate per 10,000 flight hours attributable to responsibility factors and the incident rate per 10,000 flight hours due to human factors compared to 2019.

Establishing correct views on performance and implementing relevant tasks based on "fact"

Ø We have focused on addressing development needs, passenger concerns, and employee expectations to resolve problems at all levels.

Ø We made every effort to increase the airport gate docking rate and optimize standards for ticket refunds, changes, and rescheduling.

Promoting the spirit of self-reform and deepening the comprehensive and strict governance of the Party

Ø We have thoroughly implemented General Secretary Xi Jinping's important thoughts on Party building, fostered a pragmatic and performance-oriented work style, and optimized the age, professional, and capability structure of the management and cadre teams to enhance their vitality.

Ø We have vigorously promoted the "One Tradition and Six Spirits" initiative and established strongholds on the front lines of tackling tough challenges. We also extended the comprehensive and strict governance of the Party to the grassroots level, ensuring that officials do not dare to, are unable to, and have no desire to engage in corruption ("Three Non-Corruptions").

Major Tasks in 2024 during the "14th Five-Year Plan" Period

Highlights of ESG Performance in 2024

Indicator	2022	2023	2024
ASK (million)	110,736	292,513	356,104
RPK (million)	69,967	214,173	284,350
ATK (million)	18,482	36,002	44,726
RTK (million)	9,688	21,887	29,743
Passenger carried (1,000 person-times)	45,086.7	125,454.5	155,315.5
Cargo and mail carried (1,000 tonnes)	902.8	1,070.4	1,480.1
Safe flight hours (1,000 hours)	1,166.9	2,529.5	2,950.9
Accountable incidents rate of air transportation per 10,000 flight hours	0	0.007	0
Flight on-time performance (%)	95.45	87.94	88.07
Number of registered aircraft (unit)	762	905	930
Total assets (RMB million)	295,011	335,303	345,769
Year-end market value (RMB million)	151,691	105,916	122,452
Fuel consumption per tonne-km (kg/tonne-km)	0.358	0.336	0.301
Total energy consumption (10,000 tonnes standard coal)	463.1	1,060.8	1,298.1
Environmental protection investment (RMB million)	244	385	542

Honors and Awards

Award	Presented by
Aircraft Ground Fuel Transfer System (ACFS) was awarded the Second Prize of Civil Aviation Science and Technology Award	China Air Transport Association (CATA)
Safety Risk Monitoring for RNP AR Operations at High-Altitude Airports was awarded the Second Prize of Civil Aviation Science and Technology Award	CATA
ACFS was awarded the First Prize of National Equipment Management and Technology Innovation Achievement Award	China Association of Plant Engineering (CAPE)
Rated as Outstanding in "Central SOEs ESG · Pioneer 100 Index (2024)"	SASAC of the State Council
Rated as "A" for five consecutive years in the Assessment of CPC Party Building Responsibility among Central SOEs; Ranked among the top 10 Central SOEs in the 2023 Annual Performance Assessment	SASAC of the State Council
Rated as "Excellent" (the Highest Rating) for Seven Consecutive Years in the Performance Evaluation of Paired-up Poverty Alleviation Efforts by Central Units	Central Rural Work Leading Group
The industrial assistance project Wings of China Empowering A Single Leaf for Industrial Prosperity and Public Welfare was selected as an excellent case in the Blue Book of Central Enterprises Contributing to Rural Revitalization (2023)	SASAC of the State Council
The Company has received the highest "A" rating in the Annual Information Disclosure Evaluation by the Shanghai Stock Exchange for 11 consecutive years	Shanghai Stock Exchange (SSE)
"Golden Disclosure Award" of the Golden Bull Awards for Listed Companies	China Securities Journal
China's 500 Most Valuable Brands	World Brand Lab
The World's 500 Most Influential Brands	World Brand Lab
Gold Prize in the 7th China Youth Volunteer Service Project Competition	Communist Youth League of China Central Committee, Central Social Work Department, etc.
Typical Innovative Case of Green Consumption	China Environmental Protection Foundation
2024 Best Practice Case of Board of Directors of Listed Companies	China Association for Public Companies
Air China Flight Operations Division and Beijing Airlines were honored as "Advanced Collective of Central Enterprises"	Ministry of Human Resources and Social Security & SASAC of the State Council

Response to UN 2030 Sustainable Development Goals (SDGs)

SDGs	Our Actions in 2024	SDGs	Our Actions in 2024
SDG 1: NO POVERTY SDG 2: ZERO HUNGER	Relevant content: We strictly adhere to General Secretary Xi Jinping's core guiding principles on the 'Three Rural Issues' (agriculture, rural areas, and farmers), thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, and fully leverage our strengths. Based on the actual needs of the regions supported by Air China, we advance high-quality rural revitalization through various approaches, thereby contributing to the consolidation and expansion of poverty alleviation achievements in the supported areas. Corresponding chapter: Rural Revitalization	SDG 3: GOOD HEALTH ANG WELL-BEING	Relevant content: We prioritize the protection of our employees' physical and mental health and safety as the foundation of corporate development. We rigorously implement occupational health and safety management regulations, ensure the legitimate rights and interests of employees in a safe and healthy work environment, and continuously enhance the comprehensive development of our employee health and safety system. These efforts are integral to safeguarding the well-being of all employees. Corresponding chapter: Occupational Health and Safety
SDG 4: QUALITY EDUCATION	Relevant content: We have built a robust training management framework and institutional system, delivering a wide array of training programs meticulously designed to meet the development needs of employees at all levels. We continuously refine career development pathways and actively encourage employees to advance their educational qualifications and professional competencies, fostering the mutual growth of both talent and the Company. Corresponding chapter: Employee Training and Development	SDG 5: GENDER EQUALITY	Relevant content: We strictly prohibit all forms of forced labor and child labor. And we are firmly opposed to any workplace discrimination based on ethnicity, nationality, gender, or other factors, and stand resolutely against workplace harassment and bullying. Our commitment is to ensure that the legitimate rights and interests of every employee are fully protected and respected. Corresponding chapter: Employment and Employees' Rights and Interests
SDG 6: CLEAN WATER AND SANITATION	Relevant content: We are committed to the conservation and recycling of water resources, as well as the research, development, and application of water-saving and eco-friendly technologies. In our daily operations, we rigorously implement a range of water conservation measures to significantly enhance the overall efficiency of water resource utilization. Through these concrete actions, we actively embody the principles of green development and contribute to a more sustainable future. Corresponding chapter: Resource Utilization	SDG 7: AFFORDABLE AND CLEAN ENERGY	Relevant content: We actively champion energy conservation, emission reduction, and resource recycling, while pioneering the adoption of Sustainable Aviation Fuel (SAF) as part of our commitment to becoming an eco-friendly aviation. Our mission is to responsibly mitigate environmental impacts, optimize the sustainable use of resources, and drive the transformation toward a greener, more sustainable aviation industry. Corresponding chapter: Resource Utilization
SDG 8: DECENT WORK AND ECONOMIC GROWTH	Relevant content: We consistently implement employee incentive policies and have developed a diverse, comprehensive remuneration and benefits system designed to offer well-rounded and competitive packages. We deeply care about our employees' needs, organizing a wide range of activities to foster a positive and engaging workplace culture. By doing so, we aim to maximize their enthusiasm, creativity, and overall job satisfaction. Corresponding chapter: Incentives and Care	SDG 9: INDUSTRY INNOVATION AND INFRASTRUCTURE	Relevant content: We actively engage in industry collaboration, driving the coordinated development of the aviation sector through resource sharing and technical exchanges. Our goal is to build a robust industry ecosystem rooted in mutually beneficial partnerships, fostering continuous progress and innovation across the entire aviation landscape. Corresponding chapter: Jointly Promoting Industry Development
SDG 10: REDUCED INEQUALITIES	Relevant content: We strictly prohibit any form of forced labor or child labor. And we are firmly opposed to workplace discrimination based on ethnicity, nationality, gender, or any other factor, and stand against all forms of workplace harassment and bullying. Our commitment ensures that the legitimate rights and interests of every employee are fully protected and respected. Corresponding chapter: Employment and Employees' Rights and Interests	SDG 11: SUSTAINABLE CITIES AND COMMUNITIES	Relevant content: We improve our ESG governance system to promote high-quality sustainable development. Corresponding chapter: ESG Governance System
SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION	Relevant content: We have established a new benchmark for exceptional flight experiences by enhancing service quality management, deepening the optimization of customer experiences, and continuously improving our service standards. In 2024, three of Air China's branches, six business management units, and three management support departments with audit qualifications successfully underwent comprehensive document reviews and on-site audits. Corresponding chapter: Service Quality Management	SDG 13: CLIMATE ACTION	Relevant content: We are committed to enhancing our climate management capabilities and actively supporting the national goals of achieving carbon peaking and carbon neutrality. Addressing climate change is a priority embedded in our strategic planning, integrated into comprehensive risk management, and incorporated into our daily operations. We strive to contribute Air China's expertise and resources to global climate action efforts. Corresponding chapter: Addressing Climate Change
SDG 14: LIFE BELOW WATER	Relevant content: We actively engage in biodiversity conservation monitoring and have developed targeted strategies to address identified risks that may impact biodiversity, ensuring the balance and stability of the ecological environment. Corresponding chapter: Environmental Management and Ecological Protection	SDG 15: LIFE ON LAND	Relevant content: We uphold the philosophy of respecting, protecting, and harmonizing with nature, and are dedicated to advancing ecological civilization. Through proactive biodiversity monitoring, awareness campaigns, and a series of public welfare initiatives, we strive to enhance public environmental awareness and drive progress in ecological protection. Corresponding chapter: Environmental Management and Ecological Protection
SDG 16: PEACE, JUSTICE AND STRONG INSTITUTIONS	Relevant content: We have implemented a range of measures-including enhancing our social responsibility management system and governance structure, strengthening risk management, cultivating a robust culture of integrity, promoting responsible procurement, and driving digital transformation-to establish a strong foundation for a fair, transparent, and sustainable corporate operating environment. Corresponding chapter: Corporate Governance	SDG 17: PARTNERSHIPS FOR THE GOALS	Relevant content: We have intensified our efforts to serve as an air bridge connecting countries along the 'Belt and Road,' fostering connectivity, enhancing economic and trade cooperation, and facilitating people-to-people exchanges. These initiatives fully reflect our commitment as a state-owned enterprise to drive mutual development and shared prosperity. Corresponding chapter: he Belt and Road Initiative and Industry-wide Co-building

1. Sustainable Development Management

SDG 11: SUSTAINABLE CITIES AND COMMUNITIES

SDG 16: PEACE, JUSTICE AND STRONG INSTITUTIONS

Air China is unwavering in its commitment to President Xi Jinping's key directives and the CPC Central Committee's strategic decisions, which guide all its operations. Aligned with the national agenda, the Company focuses on driving high-quality and sustainable growth, establishing itself as a world-class aviation enterprise, and partnering with stakeholders to advance a greener, more harmonious, and prosperous aviation industry.

1.1 ESG Governance System

Air China is deeply committed to advancing its ESG (Environmental, Social, and Governance) agenda. The company rigorously complies with regulatory standards to develop a comprehensive ESG governance structure. The roles and responsibilities for ESG oversight and management are explicitly articulated in the Work Rules of the Board of Directors' Strategic and Investment Committee and the Audit and Risk Control Committee (Supervision Committee). This institutionalization of ESG responsibilities ensures their integration into the board's regular operations. Guided by the CNAHC Implementation Measures for High Standard Fulfillment of Social Responsibility in the New Era, Air China has identified critical priorities to drive high-quality development and its aspiration. These strategic measures provide a strong foundation for the consistent and effective execution of ESG initiatives.

Governance Framework

Management Layer	Work Content
1 Board of Directors The Board of Directors holds the highest responsibility and decision-making authority for ESG matters, overseeing the overall planning and coordination of ESG initiatives.	l Comprehensively supervised and approved ESG short, medium, and long-term plans, along with the formulation and implementation of ESG-related policies. l Reviewed the Company's performance and progress in key material ESG issues, including aviation safety and risk control in 2024.
1.1Audit and Risk Control Committee (Supervision Committee)	l Held seven meetings to review the 2023 Internal Audit Work Report, the 2024 Work Plan, and the 2023 Internal Control Evaluation Report. Listened to reports on standardized operations in the second half of 2023 and provided feedback on internal controls, the digitization of audit processes, and the implementation of corrective actions and accountability measures for issues identified during inspections by the Central Inspection Group and audits. l Reviewed and approved the 2023 Performance Report of the Audit and Risk Control Committee (Supervision Committee) and submitted it to the Board of Directors for review and approval. l Listened to a report from the Audit and Risk Control Committee (Supervision Committee) regarding whistleblowing cases received via email.
1.2Strategic and Investment Committee	l Held seven meetings to research and deploy the Company's strategies, promote key projects for 2024, and review the 2024 investment plans and ESG report. l Listened to a report on the Company's strategy decoding meetings.
1.3Remuneration and Assessment Committee	Held three meetings to review the 2023 business performance assessment plans, the total salary budget, and the settlement schemes for the management.
1.4Nomination Committee	Held three meetings to nominate candidates for the positions of Vice President, Secretary of the Board of Directors, and Joint Company Secretaries.
1.5Aviation Safety Committee	Held three meetings to implement the Board of Directors' "Safety First" proposal, ensuring safety responsibilities effectively fulfilled .
2 CSR Leadership Panel The Chairman leads the ESG panel, tasked with formulating and reviewing the Company's ESG strategies, goals, and annual work plans, as well as reporting on the execution progress and outcomes to the Board of Directors.	l Developed the Highlights of ESG Work in 2024, clearly defined the responsible departments for key tasks, and promoted the implementation of related work. l Developed the 2023 ESG report, and disclosed it to the public after being reviewed and approved by the Board of Directors. l Participated in the training related to the latest information disclosure guidelines released by the Shanghai Stock Exchange and the Hong Kong Stock Exchange in 2024, and conducted benchmarking against new regulations to continuously raise the report production level. l Organized ESG-themed training for Board members to get informed about the latest domestic and international ESG development trends and regulatory requirements. l Issued the Implementation Measures for High-Standard Fulfillment of Social Responsibility in the New Era. l Developed and reported the Summary of 2024 ESG Work and Planning of 2025 ESG Work.
2.1 Office of CSR Leadership Panel The ESG working group, composed of representatives from various functional departments, is responsible for implementing ESG work plans in alignment with the Company's ESG management system, overall framework, and objectives.

1.2 Stakeholder Communication

Air China places great importance on the opinions and suggestions of regulators, shareholders, passengers, employees, partners, and other stakeholders. The company continuously expands and optimizes communication channels, accurately identifies key issues, and actively addresses the concerns of all stakeholders.

1.2.1 Information Disclosure

l Air China is committed to transparent, truthful, accurate, complete, and timely disclosure of information related to production, operations, and any matters that may significantly impact stock prices. This ensures that all shareholders have equal access to company information and protects investors' rights and interests. In 2024, Air China successfully compiled and disclosed high-quality periodic reports, interim announcements, and circulars to shareholders in compliance with listing rules, tailored for the Shanghai, Hong Kong, and Japan markets, respectively.

l We disclosed 57 interim domestic announcements, 65 interim overseas announcements, and four circulars.

1.2.2 Investor Relations

Establishing a sound investor relations management system

We enhanced, reviewed, and approved our Investor Relations Management System to better adapt to evolving market dynamics and ensure the comprehensive protection of investors' rights and interests.

High-quality performance release work

l We actively engage with investors through annual, semi-annual, and quarterly performance telephone communication meetings and briefings.

l For the first time, we implemented recorded broadcasts and online text interactions via the SSE Roadshow Center platform, significantly expanding our communication channels with investors and enhancing accessibility.

Establishing a multi-level mechanism for virtuous interaction with investors

l We successfully conducted our 2023 annual performance roadshow and 2024 semi-annual performance roadshow in Hong Kong and Shanghai, engaging directly with major institutional investors.

l We actively participated in institutional summits and strategy meetings, organizing or attending over 30 investment conferences and telephone research meetings throughout the year.

l We place great emphasis on addressing the needs of small and medium-sized investors, strengthening communication with them through diverse channels to ensure inclusivity and transparency.

Summer Travel Press Conference

On June 26, 2024, Air China successfully held its Summer Travel Press Conference under the theme "Viewing a Better World". The event focused on showcasing Air China's strategic capacity deployment and innovative service products tailored for the summer travel season. To meet the heightened demand during this peak period, Air China expanded its route network, enhanced its flight capacity, and elevated service quality to ensure a seamless travel experience. The press conference welcomed over 120 distinguished guests, including leaders from the Beijing Municipal Bureau of Culture and Tourism, Capital Airports Holdings Co., Ltd., and other key stakeholders. Representatives from travel agencies, industry partners, and news media also attended, making it a comprehensive and impactful event.

The 30th Anniversary of the "Phoenix Miles" Frequent Flyer Program

On November 27, 2024, Air China celebrated the 30th anniversary of the "Phoenix Miles" Frequent Flyer Program with a grand event in Beijing, themed "Life's Journey, Companion of a Lifetime." The event focused on introducing new service offerings related to "Phoenix Miles" and highlighted the program's 30-year development journey. Additionally, Air China unveiled the Phoenix Miles VIP Member Incentive Program. The anniversary event was attended by over 300 guests, including representatives from the Civil Aviation Administration of China (CAAC), Phoenix Miles members, partners, and media representatives.

1.2.3 Response to Stakeholders

We identify critical issues and address the needs of all stakeholders by analyzing the Company's characteristics and external environmental changes.

Stakeholders

Communication channels

Expectations and appeals

Response from Air China

Government/ Domestic

and overseas regulatory

authorities

Ÿ Work meetings and briefings

Ÿ Information disclosure

Ÿ Cooperation with governments

Ÿ Release of blue books

Ÿ Integrity, compliance, and orderly operations

Ÿ Support for important and major events

Ÿ Zero accidents relating to safety operations

Ÿ Good corporate image

Ÿ Energy saving, emission reduction, and environmental protection

Ÿ Participating in the planning, research, and formulation of policies and reports on special topics

Ÿ Following regulatory requirements

Ÿ Acceptance of supervision and assessment

Ÿ Participating in specialized training programs

Shareholders

Ÿ Information disclosure

Ÿ General Meetings of Shareholders

Ÿ Investors' meetings

Ÿ Official website of the Company

Ÿ Realizing standardized corporate governance

Ÿ Protection of investors'/shareholders' interests

Ÿ Sustainable development ability

Ÿ Improving corporate governance and internal control system

Ÿ Working on investor relations

Ÿ Strengthening the core competitiveness

Ÿ Regular result announcements

Customers

Ÿ Customer satisfaction surveys

Ÿ Compliant handling

Ÿ New media

Ÿ Flight safety and on-time performance

Ÿ Provision of all-round and high-quality service

Ÿ Protection of personal privacy

Ÿ Establishing branded lounges

Ÿ Certification of food safety management

Ÿ Provision of intelligent service

Ÿ Improving the release mechanism for information on irregular flights

Ÿ Protecting passenger information

Employees

Ÿ Employee satisfaction surveys

Ÿ Internal BBS, magazines, emails, and WeChat

Ÿ Employee representatives' meetings

Ÿ Activities of the trade union

Ÿ Establishment of teams

Ÿ Protection of rights and interests

Ÿ Focus on the Company's development strategy

Ÿ Participation in the Company's management and operation

Ÿ Smooth career pathways

Ÿ Compensation and benefits

Ÿ Building a multi-level developing channel and learning path for talents

Ÿ Facilitating the work of the Staff Service Centre

Ÿ Providing psychological counseling, etc.

Ÿ Innovation studios for advanced model and craftsmen

Ÿ Cultural and sports activities

Ÿ Skill contests

Ÿ Helping employees with difficulty

Partners/ Suppliers

Ÿ Financial, insurance, procurement, and other businesses

Ÿ Daily business interactions

Ÿ Partners' meetings

Ÿ Honesty and integrity in business operation

Ÿ Enhanced solvency

Ÿ Reduction of the operational risks

Ÿ Transparency in procurement

Ÿ Mutual development

Ÿ Strengthening communication and cooperation

Ÿ Strengthening supplier management

Ÿ Revising and improving procurement policy

Ÿ Strengthening suppliers' capability and awareness of environmental protection

Peers

Ÿ Industry forums

Ÿ Industry conferences

Ÿ Attention to industry development and trends

Ÿ Maintenance of a fair and orderly market

Ÿ Strengthening alliance cooperation

Ÿ Carrying out industrial cooperation

Ÿ Signing Memorandum of Understanding

Community

Ÿ Public welfare and charity activities

Ÿ Volunteer service

Ÿ Promoting economic growth of the communities

Ÿ Supporting public welfare events

Ÿ Promoting rural revitalization

Ÿ Engaging in public welfare and charity activities

Ÿ Completing important transportation tasks

Media

Ÿ Press releases

Ÿ Media calls and visits

Ÿ Official new media platforms

Ÿ Responding to important events of the Company

Ÿ Public image and influence

Ÿ Future planning

Ÿ Publication of Sustainability & ESG reports and regular performance reports

Ÿ Timely updates of new developments via Weibo, WeChat and TikTok

Ÿ Organizing open day activities

Ÿ Product launch events and other activities

1.3 Materiality Determination

Air China regularly conducts assessments of material sustainable development issues to identify key focus areas and effectively respond to stakeholder expectations. This process also drives continuous improvement in its ESG management. In 2024, the Company reviewed its list of material issues from both internal and stakeholder perspectives, which remains largely unchanged compared to 2023.

Issues of High Materiality	Issues of Medium Materiality
Flight safety	Communication with employees and Protection of employees' rights and interests	Service for special passengers
Passenger health and safety	Rural revitalization	Work conditions and social security
Supporting special flight missions	Integrity management	Pollution Prevention and Waste Management
On-time performance	Innovation of products and service	Contributions to industry development
Protection of customer privacy	Risk management and compliant operations	Employee training and development
Occupational health and safety	Sustainable value chain	Charity and Community Engagement
Employee care, Remuneration, and Benefits	Internationalized development	Diversity and equality
Improvement of customer experience	Sustainable use of resources
Climate Change Response and Carbon Reduction

1.4 Corporate Governance

Air China has established a robust governance framework, prioritizing integrity and compliance in business operations. The Company consistently improves governance efficiency and strengthens risk resilience, maintaining a clean and ethical workplace. It is committed to building a supply chain management system that combines quality, compliance, and sustainability while actively advancing technological innovation to drive high-quality corporate development.

1.4.1 Corporate Governance System

Air China strictly adheres to relevant laws and regulations, including the Company Law, Securities Law, and the Code of Corporate Governance for Listed Companies. The Company has established a transparent, balanced, and legally compliant governance mechanism. Its optimized "1+3+N" governance system, centered on the Articles of Association, and updated Material Issues Responsibility Matrix clarify the roles and decision-making processes of the Party Committee, Board of Directors, and Management.

Guidance of Party Building

In 2024, guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, Air China implemented the principles of the 20th CPC National Congress and the Second and Third Plenums of the 20th Central Committee. The Company integrates Party leadership into governance, leveraging high-quality Party building to drive corporate excellence.

In 2024, the Standing Committee of the Party Committee held 54 meetings, undertaking preliminary review on 21 key issues.

High-Level Deployment for In-depth Party Discipline Education

On April 12, 2024, Air China formally launched the Party Discipline Education Campaign. Guided by General Secretary Xi Jinping's directives on strengthening Party discipline and in line with the SASAC Party Committee's deployment, the Company treats this initiative as a top political priority. Air China has advanced key measures, including studying the Party's disciplinary regulations, implementing warning education activities, and conducting training and awareness campaigns. These efforts ensure that all Party members fully understand and uphold discipline, laying a solid foundation for high-quality development and accelerating the Company's transformation into a world-class enterprise.

Uphold the Party's Leadership

Air China has advanced the "Two Upholds" system, improving the "First Agenda" full-chain mechanism and institutionalizing oversight of the Party Central Committee's major decisions. Upholding the "Two Consistencies" principle, the Company has optimized the Party Committee's decision-making processes. The Standing Committee has revised its meeting rules and innovatively strengthened the "Four Whether" pre-research political review mechanism. Subordinate enterprises have been guided to update their decision-making systems. These measures ensure Party leadership is fully integrated into corporate governance, translating its advantages into effective governance.

Strengthen Political Construction

Air China is implementing corrective measures from the 20th Central Committee's second-round inspections, leveraging these improvements to align with national strategic priorities and achieve its vision of becoming a world-class enterprise.

Enhance Ideological Development

The Company facilitates in-depth learning of the Third Plenary Session of the 20th Central Committee, empowering Party members and executives to uphold principles, overcome challenges, and take responsibility. This effort aims to translate learning outcomes into tangible progress in comprehensive reforms and sustainable high-quality development.

Improve Organizational Development

Air China is steadily progressing its "Seven-Focus" grassroots Party building initiative, bolstering grassroots Party organizations, Party affairs teams, and Party member development, while drawing on exemplary models for strategic guidance.

Uphold the Party's Leadership in Talent Management

Through systematically optimizing the talent structure and role classification system, the Company bolsters talent selection, utilization, and incentive mechanisms, thereby cultivating a highly competent cadre of leaders.

Advance Comprehensive and Rigorous Party Governance

By fully implementing the new-era Party-building requirements, Air China reinforces primary and supervisory responsibilities for strict Party governance. Moreover, the Company extends comprehensive and rigorous Party self-discipline to grassroots levels, driving deeper implementation.

Consolidate the United Front

Through actively fostering relationships and friendships with non-Party individuals, Air China ensures that United Front members contribute meaningful insights and suggestions.

General Meetings of Shareholders

The General Meeting of Shareholders represents the highest authority within the Company. It is tasked with resolving critical corporate matters, including business policies, investment plans, personnel appointments, financial reviews, and performance evaluations. This ensures alignment with legal and regulatory standards while protecting shareholders' interests. In 2024, the number of General Meetings of Shareholders was four..

Board of Directors

Air China's Board of Directors functions as the executive decision-making body, overseeing the Company's comprehensive strategy, asset management, internal supervision, and risk management. The Board is responsible for defining strategic direction, formulating policies, and exercising its statutory powers in accordance with legal procedures and the Company's articles of association. It is accountable to the General Meetings of Shareholders, supervises executive management, and steers the Company's steady growth.

Diversity of Board of Directors

Air China remains committed to building a diverse and professional Board of Directors. On February 25, 2025, the Company successfully re-elected its seventh Board of Directors, comprising nine members, including four independent directors and one female director. The board members bring expertise in fields such as civil aviation, finance, auditing, business management, law, and risk control, ensuring comprehensive and scientifically rigorous decision-making.

Directors in Air China

No.	Name	Gender	Position	Expert Type
1	Ma Chongxian	Male	Chairman Executive Director	Industry Expert
2	Wang Mingyuan	Male	Vice Chairman Executive Director President	Industry Expert
3	Cui Xiaofeng	Male	Non-executive Director	Industry Expert
4	Patrick Healy	Male	Non-executive Director	Industry Expert
5	Xiao Peng	Male	Employee Director	Industry Expert
6	Xu Niansha	Male	Independent Non-executive Director	Finance Expert
7	He Yun	Male	Independent Non-executive Director	Auditing Expert
8	Winnie Tam Wan-chi	Female	Independent Non-executive Director	Legal Expert
9	Gao Chunlei	Male	Independent Non-executive Director	Business Management Expert

Director's Remuneration

Air China has established robust remuneration systems, including the Managerial Team Performance Evaluation and Remuneration Management Measures and the Company Business Performance Evaluation Management Measures, in compliance with SASAC and other regulatory requirements. Directors' and senior management's remuneration is performance-based, incorporating Sustainability and ESG metrics. Total remuneration includes pre-tax salaries and contributions to benefits such as social insurance, housing provident funds, and enterprise annuities. Independent directors' compensation aligns with national policies. In 2024, the Company integrated Sustainability and ESG performance evaluations into business leaders' annual compensation, including clawback and malus provisions.

Performance of Board of Directors

In 2024, Air China strengthened the Board of Directors' role by optimizing its operational mechanisms and enhancing its decision-making authority. A pre-decision reporting mechanism was introduced to ensure independent directors receive timely information and provide input for scientifically sound decisions. The Company implemented 69 independent directors' recommendations across eight key areas, including strategy, marketing, digital transformation, risk management, and aviation safety, fostering high-quality development. Independent directors remain aligned with the Company's strategy, conduct frontline investigations, and participate in training programs organized by SASAC, the China Securities Regulatory Commission(CSRC) Beijing Bureau, and the Shanghai Stock Exchange to enhance their governance capabilities.

l In 2024, the Board of Directors held nine meetings, approving 37 proposals while reviewing 20 special reports.

l The number of independent directors researches was four and the number of research reports submitted was four.

Professional Committees of the Board of Directors

Air China's Board of Directors is supported by five Professional Committees, which play a critical role in ensuring efficient and professional decision-making. Prior to formal deliberation and voting by the Board, each committee conducts in-depth analysis of proposals under review, incorporating expert insights and recommendations from independent directors. Additionally, joint working groups within each committee provide comprehensive support to enhance the decision-making process.

Subsidiary Boards

To strengthen corporate governance at the subsidiary level, Air China has established a robust institutional framework by formulating and issuing the Guidelines on Articles of Association for Subsidiaries and the Management Measures for the Performance of Duties by Directors in Investment Enterprises Without a Board of Directors. These measures reinforce governance foundations and promote standardized operations across subsidiary boards. The Company ensures that all necessary boards are established with clearly defined roles and responsibilities, supported by structural optimizations and the creation of Professional Committees within subsidiary boards. Air China also prioritizes the development of a qualified pool of external directors and continuously refines board composition. Through targeted initiatives, such as the 2024 specialized training program for external directors and the study of the Company Law of the People's Republic of China, the Company has significantly enhanced directors' expertise and ability to fulfill their duties effectively.

Supervisory Committee

The Supervisory Committee oversees the Company's financial affairs and monitors the conduct of directors and senior management to ensure compliance with laws and regulations while safeguarding the legitimate rights and interests of the Company and its shareholders. In 2024, the number of Supervisory Committee meetings was five.

Management

The management is responsible for implementing Board resolutions and regularly reporting progress to the Board, while overseeing the Company's day-to-day operations and management. Air China has established the Administration Office's Rules of Procedure, authorized by the Board of Directors, to ensure effective governance. In 2024, the number of President's Executive Office meetings was 27.

1.5 Risk Management

Air China has deepened its mechanism of "focusing on the rule of law, strengthening internal control, preventing risks, and promoting compliance". The Company implements full-chain risk prevention and control measures, comprehensively strengthening the management of operational and safety risks. By establishing a robust risk management system and elevating its compliance standards, Air China ensures its stable and sustainable development.

Risk Management System

Air China's risk control and compliance management system is led by the Board of Directors, pre-monitored by the Company's Party Committee, deployed by the management, and supervised by the Board of Supervisors. Additionally, the Air China Legal Matters Leading Group coordinates the development of risk, internal control, compliance, and legal affairs. The Company adheres to a prudent risk preference, with "zero tolerance for safety hazards, uninterrupted financial security, and reasonable risk exposure" as the core. These principles form the foundation of Air China's three lines of defense for risk control and compliance management, ensuring a comprehensive and proactive approach to risk mitigation.

"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/Air China Legal Matters Leading Group				Third Line of Defence
	First Line of Defence		Second Line of Defence
	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.

Risk Identification and Control

In 2024, Air China formulated the Implementation Rules for Risk Assessment and Reporting and refined its risk framework based on external regulatory policies and the Company's operational realities. The Company identified nine major primary risk categories, which are further subdivided into over a hundred secondary risks aligned with its business operations. This structured approach ensures the effective execution of Air China's risk identification and control responsibilities, safeguarding the Company's resilience and stability.

Nine Primary Risk Categories

Ÿ Strategic Risk

Ÿ Safety Risk

Ÿ Integrity Risk

Ÿ Public Opinion Risk

Ÿ Legal Risk

Ÿ Market Risk

Ÿ Operational Risk

Ÿ Financial Risk

Ÿ Investment Risk

Risk Control and Tracking

l Ensure a Solid Risk Research and Judgment Mechanism

Adhere to governance and decision-making processes by conducting in-depth research and specialized diagnostics to assess annual material risks. Apply comprehensive measures to address these risks and enhance the precision of risk quantification by quantifying key risk indicators. Categorize and grade significant risk issues for rolling monitoring and closed-loop management. Strengthen the risk reporting mechanism, focusing on annual, quarterly, and monthly reports, supplemented by emergency and special reports, with particular emphasis on controlling foreign legal compliance risks.

l Extend the Risk Assessment Mechanism for Decision-Making

Prioritize compliance to ensure comprehensive evaluation of all significant decision-making risks, proactively preventing and mitigating potential threats. Deeply integrate risk assessment into reform and development initiatives, core tasks, and major project management to ensure alignment with strategic objectives.

l Develop a Robust Risk Prevention and Control Coordination Mechanism

Management should oversee the progress of key tasks, evaluate challenges in risk and control management, and promote the sharing of best practices. Continuously strengthen the information-sharing mechanism among risk control, compliance, discipline inspection, and audit functions to build the "three lines of defense" in risk prevention through collaborative management.

l Comprehensively Consolidate the Risk Prevention and Control Responsibility Mechanism

Implement strict risk classification and layered management, ensuring responsibility for risk reduction is assigned to specific positions and individuals. Enhance the ability to manage risk throughout the entire process, fostering accountability and resilience across the organization.

Corporate Compliance

l Establishing a sound compliance management mechanism. We promote compliance and internal control improvement projects, formulate comprehensive institutional documents and compile "three lists" for compliance management. These measures ensure the effective implementation of compliance management across the organization.

l Strengthening research in key areas of compliance. In terms of data protection, we actively engage in the development of the "negative list" for data export within the Beijing Pilot Free Trade Zone, providing expert insights and actionable recommendations to ensure robust data governance. In terms of export control and sanctions, we conduct targeted research to enhance risk prevention measures, ensuring compliance with both international and domestic regulatory frameworks. In terms of competition law, we perform in-depth analysis of regulatory requirements, including the Guide to the Anti-Monopoly Compliance of Undertakings and the Regulations on Fair Competition Review.

l Managing the entire cycle of rules and regulations effectively. We develop comprehensive guidelines for evaluating regulations and systems post-implementation to ensure their effective execution and continuous improvement.

Organizing compliance promotion activities

l Encouraging leading cadres to take the initiative in respecting, learning, abiding by, and applying the law. We have distilled key learning points from the list of national laws essential for cadres and integrated them into training programs. These are further reinforced through the "One Law per Period" series on the "Legal Awareness" publicity platform.

l Leveraging the "Legal Awareness"platform. We consolidate legal publicity resources across the company to create a synergistic effect through coordinated efforts at all organizational levels. We have published over 60 legal education articles and developed legal popularization case studies addressing prominent public security issues, achieving nearly 400,000 cumulative views.

l Building a compliance culture. We conduct themed activities during "Compliance Awareness Month," including organizing all staff to sign compliance commitment letters, collecting compliance promotion works, publishing multi-lingual compliance codes of conduct, and delivering the "first lesson of compliance." These initiatives embed compliance concepts deeply within the organization.

l Carrying out legal training in multiple areas. Following the principles of being targeted and effective, we organize tailored training sessions for various teams: the training on export control and sanctions for compliance personnel ; the training on the Civil Code of the People's Republic of China and the contract management systems for contract personnel; and the intellectual property training for technology innovation personnel.

Internal Audit

Air China has established a robust three-tier internal audit system framework, including 18 audit systems issued by Air China's headquarters and 62 audit systems implemented by audit institutions at all levels. In 2024, to further improve the quality of internal audits, the Company revised the Audit Rectification Tracking Management Measures and compiled the Work Manual for Internal Control, Supervision, and Evaluation.

Air China's Three-Tier Internal Audit System

First-tier rules

The Internal Audit Work Regulations of Air China Limited

Second-tier rules

The Economic Responsibility Audit Regulations of China National Aviation Holding Corporation Limited and Air China Limited

The Internal Control Evaluation Management Measures of Air China Limited among other specific audit regulations and management methods.

Third-tier rules

The Audit Rectification Tracking Management Measures of China National Aviation Holding Corporation Limited and Air China Limited

The Internal Audit Work Manual of Air China Limited among other detailed audit implementation rules and operation manuals.

Under the leadership of the Board of Directors and the Audit and Risk Control Committee (Supervision Committee), the Company's internal audit work has been robustly executed, fulfilling its supervisory responsibilities with diligence and precision. In 2024, audit institutions at all levels carried out 120 audit projects across four key categories: economic responsibility audits, special audits, engineering project audits and internal control supervision and evaluations, that could enhance the Company's institutional framework, identify and address management loopholes, improve the quality and efficiency of business operations, and regulate the exercise of power. Collectively, these contributions have laid a solid foundation for the Company's stable operation and sustainable development, ensuring long-term resilience and growth.

1.6 Anti-Corruption and Business Ethics

Air China is steadfast in its commitment to adhering to domestic and international laws and regulations, ensuring all business activities are conducted in a legal and compliant manner. Guided by key legislative frameworks such as-the Supervision Law of the People's Republic of China, the Anti-Money Laundering Law of the People's Republic of China, the Anti-Monopoly Law of the People's Republic of China, and the Anti-Unfair Competition Law of the People's Republic of China-the Company has developed and issued critical compliance documents, including the Compilation of Antitrust Cases in the Aviation Industry, the Anti-Commercial Bribery Compliance Manual (2022 Edition), and the Compliance Manual for Data in Various Jurisdictions. Air China maintains a "zero tolerance" stance towards bribery, corruption, fraud, money laundering, and unfair competition, reinforcing its dedication to ethical business practices. In 2024, the Company was not involved in any lawsuits related to corruption, bribery, fraud, or money laundering.

Anti-Corruption

l We enhanced the application of disciplinary inspection and supervision recommendations to address issues identified through supervision, inspection, review, and investigation, continuously deepening reform and governance through case-based approaches.

l We submitted an analysis report on cases of violations, disciplinary breaches, and illegal activities in 2023, proposing targeted preventive measures and ensuring their effective implementation.

l We issued the List of Enterprises Prohibited from Transactions (2024), strictly preventing relatives of leaders from engaging in unauthorized business transactions with the Company.

l We conducted special inspections on the prevention and control of integrity risks within the headquarters' management support divisions, establishing a robust "integrity risk" firewall.

Inspections and Oversights

1.Organizing two rounds of inspections. We conducted two rounds of inspections, including routine checks on the Party committees of organizations such as Shandong Aviation Group Corporation. Simultaneously, we carried out special inspections to prevent and control integrity risks in bidding, procurement, and construction projects, addressing misconduct and corruption issues affecting employees and the public.

2.Coordinating and carrying out special governance targeting violations of the Party's eight-point frugality code. We established and improved a promotion mechanism involving "clarifying task arrangements, conducting regular supervision and advancement, enforcing strict accountability, and promoting case-based rectification and governance". Additionally, we issued the Compilation of Excerpts from Relevant Documents for Special Governance and formulated the Negative List for Implementing the Party's Eight-Point Frugality Code, urging subordinate units at all levels to engage in learning, publicity, self-examination, and self-correction.

3.Coordinating and deepening the "1+4" special governance initiative for integrity risk prevention and control. We issued a Work Plan to jointly launch one special governance program and four targeted rectification campaigns in procurement, engineering construction, passenger sales, and cargo sales, prompting subordinate units at all levels to conduct self-assessment and correction. Furthermore, we compiled the Summary of Integrity Risk Prevention and Control Measures in Key Areas, which outlines 11 key sectors, 77 critical integrity risk points, and 308 preventive and control measures, with ongoing supervision to ensure their implementation and rectification.

4.Intensifying the rectification of issues identified during the "look-back" review. We formulated a Work Plan centered on five issues highlighted during the "look-back" review of the 19th Central Inspection rectification efforts, including "normalizing and sustaining work style improvements, tackling the four forms of decadence (formalism, bureaucratism, hedonism, and extravagance), official misconduct in dining and entertainment, accepting gifts and cash, and mountains of documents and endless meetings" .The plan detailed 11 tasks across four key areas, which were seamlessly integrated and executed alongside our broader work style enhancement initiatives.

Whistleblowing Mechanism

Air China strictly adheres to relevant regulations, including the Rules for Handling Accusations and Complaints by Discipline Inspection and Supervision Organs and the Regulations of the Supreme People's Procuratorate on Protecting Citizens' Rights to Report. To ensure compliance, the Company has developed the Implementation Rules for the Handling of Letters and Visits (for Trial Implementation) and established a multi-channel complaint system that facilitates public reporting through mail, telephone, and internet platforms. Furthermore, all forms of threatening, attacking, or retaliating against whistleblowers are strictly prohibited, safeguarding their legitimate rights and ensuring they are protected from any form of infringement.

Whistleblower Protection Initiatives

l The whistleblower's name, employer, address, the content of the public complaint, and other relevant details must be strictly kept confidential.

l It is strictly prohibited to disclose the public complaint materials or whistleblower information to the reported organization or individuals.

l All efforts to receive or verify public complaints must be carried out without revealing the whistleblower's identity.

l The whistleblower's personal information, such as their name or employer, may only be publicized with their explicit consent.

Building an Integrity Team

l Strengthening overall planning. We have issued the Education and Training Plan for Inspection and Oversight Leaders (2023-2027) and formulated the Implementation Measures for the Construction of the Inspection Leader Team and the Management Measures for the Key Inspection Talent Pool. These initiatives aim to enhance the selection, nurturing, appointment, and management of key inspection personnel. Additionally, we have revised the Management Measures for Inspection Staff and established a list of 14 types of "negative behaviors", while comprehensively conducting a post-assessment on work style and discipline.

l Enhancing personnel exchanges. In 2024, we transferred four leaders and selected four new ones, ensuring a dynamic and refreshed leadership structure.

l Strengthening guidance for subordinate units. We developed two specialized courses focusing on the integration and coordination of "two responsibilities" and the strengthening of work style construction. Furthermore, we conducted 12 sessions of "delivering courses" to grassroots units, providing instructional guidance during inspections to ensure effective implementation.

Building an Integrity Culture

Air China has intensified its anti-corruption education efforts to foster a culture of integrity and cleanliness. We formulated the 2024 Clean Education Work Plan and issued four editions of the Clean Education Work Progress List. By organizing warning education conferences and a series of activities during the fifth Party Conduct and Integrity Education Month, the airline effectively enhanced the anti-corruption awareness of all employees, cultivating a clean and upright organizational atmosphere. These initiatives achieved a 100% coverage rate for clean education among the Board of Directors and staff.

Anti-corruption Training and Publicity Activities

Ÿ Hubei Branch's Activity Room for Integrity Culture and Discipline Education

Ÿ A Special In-flight Event on Confucius' Birthday Was Organized by Shandong Aviation Group Corporation' Cabin Department with Passengers Invited to Explore the Idea of "Integrity" in Traditional Culture Together

Ÿ The Cabin Department of Shandong Aviation Group Corporation organized a special in-flight event to celebrate Confucius' Birthday, inviting assengers to join in exploring the concept of "Integrity" in traditional Chinese culture.

Ÿ Chongqing Branch's Integrity Culture Course

Ÿ The Competition to Identify Outstanding Courses and Lecturers for Integrity Education Organized by the Cabin Service Department during the Party Conduct and Integrity Education Month

Ÿ Selection of Exemplary Cases in Integrity Culture Organized by Shenzhen Airlines

1.7 Responsible Supply Chain

Air China is dedicated to integrating sustainable development principles into its collaborations with upstream and downstream partners across the supply chain. By working closely with suppliers, we strive to build a transparent, mutually beneficial, and responsible supply chain, collectively driving sustainable growth in the air transport industry.

Supply Chain Management

Air China is committed to establishing a stable, efficient, high-quality, and responsible supply chain. We achieve this by strictly adhering to relevant laws, regulations, and internal policies on bidding and procurement, while continuously refining our procurement management system. Leveraging our advanced procurement management platform, we implement classified and life-cycle-based management for all suppliers. During the supplier admission process, we rigorously screen and evaluate candidates to ensure their qualifications, reputation, and product quality meet our stringent standards. Additionally, we assess their environmental and social responsibility performance to align with our sustainability goals. In the management phase, we enhance risk control measures to ensure the supply chain's stability and reliability. Through ongoing quality monitoring and improvement initiatives, we collaborate with suppliers to continuously elevate the overall quality and sustainability of our supply chain.

Supplier Management System

Access Management:

In alignment with the Supplier Management Regulations, we have established unified management requirements, audit standards, and work processes, supported by a centralized management system. To ensure compliance, we thoroughly review suppliers' qualifications, including their operational compliance, credential validity, service capability, business ethics, and environmental and social responsibility performance. Only suppliers that meet our stringent requirements are qualified for partnership.

Categorization Management:

By categorizing materials, we enable classification management of supplier access, performance assessments, and supplier databases. Suppliers involved in misconduct, those on the blacklist, and those designated for elimination are managed based on the type and extent of their violations, with appropriate usage restrictions applied.

Tiered Management:

l We conduct comprehensive evaluations of our contracted suppliers across multiple dimensions, including their basic profiles, costs, innovation capabilities, customer satisfaction, product quality, supply reliability, service capability, delivery performance, safety standards, and environmental sustainability. Through a structured daily performance management system, we establish a robust foundation for annual performance reviews, ensuring an objective and accurate assessment of our partner suppliers' capabilities and performance.

l In managing supplier selection and engagement, we promote healthy competition while adhering to risk control and regulatory standards. To achieve this, the Company has implemented a tiered supplier management approach, classifying suppliers into five categories: strategic, preferred, qualified, restricted, and disqualified. These classifications are accessible on our procurement management platform, standardizing and streamlining supplier management practices.

Exit Management:

We have established a supplier exit mechanism based on categorization and tiered management outcomes. Suppliers with persistently poor performance reviews, subpar contract fulfillment, or integrity concerns are subject to exit and removal measures. This process optimizes the supplier database and fosters a healthy and sustainable supply ecosystem.

As of December 31, 2024, Air China's procurement business included nine domestic and eight overseas suppliers in the aircraft procurement sector, alongside 10,942 domestic and 889 overseas suppliers across the broader procurement business.

Incorruptible Procurement

Air China is dedicated to fostering collaboration with suppliers to jointly build an incorruptible supply ecosystem and continuously enhance the institutional mechanisms for supplier integrity management. During the Reporting Period, all suppliers signed the Letter of Commitment against Commercial Bribery, ensuring the cleanliness and efficiency of business operations. Additionally, the Company strictly enforces measures to prevent suppliers on the List of Enterprises Prohibited from Transactions from participating in procurement activities in violation of policies, thereby upholding the integrity and compliance of procurement processes.

Green Procurement

Air China has incorporated the "green and low-carbon" concept into its product procurement framework, issuing the Notice on the Implementation of Green Procurement as a guiding principle. This notice prioritizes the procurement of raw materials, packaging, equipment, and office supplies with minimal environmental impact. By doing so, the Company encourages suppliers to consistently improve their environmental management practices and reduce the ecological footprint of the supply chain.

Continuous Promotion of Sustainable Aviation Fuels (SAF)

Air China has embedded green principles into its flight operations, demonstrating its commitment to sustainability. In 2024, the Company actively advanced the regular commercial application of SAF, achieving an annual consumption of 446.6 tons.

1.8 Innovation-driven Development

Air China places innovation at its core, striving to achieve the integrated development of technological innovation and industrial innovation. By fostering and empowering talented professionals with specialized skills, practical experience, and forward-thinking innovative mindsets, the Company is laying a solid foundation for progress. Through the implementation of forward-looking projects, Air China is committed to advancing its technological innovation into a new stage of development.

Ÿ In 2024, R&D investment reached RMB 497 million, accounting for 0.30% of operating revenue.

Ÿ In 2024, Air China had 3,296 R&D personnel, representing 3.14% of the Company's total workforce.

Undertaking major air transportation missions	Air China remains committed to fulfilling its missions as a "flag carrier" by achieving large-scale operations of the C909 aircraft and introducing the C919 into service. We continuously strengthen our capabilities in operating domestically produced civil aircraft. With the aim of becoming the world's first user of the C929, we actively participate in the design and R&D phases. We also help make domestically produced aircraft more aligned with passenger needs and more competitive in the global market.
Building an innovation hub for civil aviation	Air China has optimized its "3+8" system of innovation laboratories and engineering technology centers, and has restructured the "Digital Empowerment Innovation Laboratory." We promote the application of emerging technologies, such as artificial intelligence and big data, to empower business scenarios, including marketing service, operational safety, and collaborative management.
Actively fostering an innovation ecosystem	Air China is accelerating the cultivation and incentivization of technological talents. We have cultivated a number of outstanding innovative talents, including experts selected for national talent cultivation programs. We also strengthen incentives for technological innovation. Through diversified reward and support schemes, expanding the scope of recognition, and optimizing performance evaluations, we strive to stimulate employees' innovation vitality.

Ameco Completes A330 Passenger-to-Freighter Configuration

In 2024, Ameco officially delivered China's first A330 aircraft converted from passenger-to-freighter configuration. This marks the first A330 conversion project certified by the Civil Aviation Administration of China (CAAC) for Chinese civil aviation. The freighter completed its maiden cargo flight on the "Chengdu-Paris" route and began commercial operations later that year.

Falcon Obtains "Little Giant" Certification

In 2024, Chengdu Falcon Aircraft Engineering Service Co., Ltd., a subsidiary of Air China, was set to be included in the sixth list of the national Specialized, Precision, Distinctive, and Innovative (SRDI) "Little Giant" Enterprises (a national recognition for specialized and innovative SMEs in China), due to the company's outstanding strengths in aviation engineering and retrofit solutions. This years, the company successfully retrofitted the maritime satellite communication system on China's first B747-400 aircraft. This achievement made it the only domestic company capable of providing such solutions for both B737 and B747 aircraft.

"Maker Boot Camp": Cultivating Young Talent Through Technology Services

In November 2024, Air China was set to participate in the "Maker Boot Camp" event organized by CNAHC. Young innovative talent representatives systematically studied various courses, including advanced productive forces and civil aviation's high-quality development. They also engaged in in-depth discussions on topics such as Service Product Management in the Digital Era for Airlines and the application of artificial intelligence in aircraft maintenance, which led to final presentations.

The 2nd Innovation Awards Ceremony

In May 2024, Air China and its subsidiaries were set to be recognized at the 2nd Innovation Awards Ceremony held by CNAHC, receiving awards for six technical projects, including R&D for Large Antenna Structure Modification and Installation. These awards aim to motivate young employees to foster innovation, improve technical skills, and engage in innovation-driven initiatives.

1.9 Intellectual Property Rights Protection

Air China strictly adheres to relevant international conventions, laws, and regulations, including the Trademark Law of the People's Republic of China; the Regulations on the Implementation of the Trademark Law of the People's Republic of China; the Patent Law of the People's Republic of China; the Regulations on the Implementation of the Patent Law of the People's Republic of China; the Copyright Law of the People's Republic of China; and the Madrid Agreement Concerning the International Registration of Marks. Based on this, Air China has developed the Legal Affairs Management Regulations and the Intellectual Property Management Measures to strengthen its intellectual property management framework and bolster the protection of intellectual property rights such as trademarks, patents, and copyrights. By the end of 2024, Air China held over 310 domestic and international patents, 2,780 registered trademarks, and 15 copyrights.

1.10 Equal Treatment of Small and Medium Enterprises

Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Air China actively implements the principles of the 20th National Congress of the Communist Party of China (CPC), the Second and Third Plenary Session of the 20th CPC Central Committee, as well as the directives of the CPC Central Committee and the State Council. The Company systematically incorporates the timely and full payment of corporate accounts into its efforts to build a new development paradigm and achieve high-quality development. As a central enterprise, Air China actively fulfills its responsibilities by adhering to the principle of "ensuring timely and full repayment of accounts payable." The Company continuously refines its institutional framework, optimizes daily operations, and reinforces oversight mechanisms to ensure the timely repayment of accounts payable and the protection of the legitimate rights and interests of small and medium enterprises (SMEs). In 2024, there were no cases of overdue payments to SMEs.

1.11 Digital Transformation

In 2024, Air China advanced its comprehensive digital transformation. The Company streamlined its organizational structure for digital transformation and enhanced its operational mechanisms, and prioritized three core areas: safety operations, marketing services, and management coordination. By continuously improving safety standards, marketing precision, the end-to-end travel experience, and management efficiency, the Company facilitated the integration of technology, business, and management. This approach maximized the value of data assets and established a robust foundation for the Company's digital transformation.

In 2024, Air China executed 28 key digital initiatives and 46 significant digital projects, achieving 77 key milestones. The implementation rate for all planned digital initiatives reached 100%.

Digital Transformation Achievements

Safety operations

l Air China has accelerated the implementation and expansion of the Global Ground Flight Support System, featuring visualized flight monitoring, intelligent scheduling, and mobile on-site operations. These advancements have significantly strengthened flight ground support capabilities.

l The Company has expedited the development of the monitoring platform and streamlined full-chain operational monitoring and special scenario management processes.

Marketing service

l Air China adopts a customer-centric approach and utilizes digital capabilities to drive innovation in marketing and business models while improving service quality. The second phase of the business model innovation project aims to enhance the user-friendliness, convenience, and efficiency of the website's sales and service functions, develop a seamless digital air travel platform, and strengthen capabilities in targeted marketing and diversified product offerings.

l The onboard meal pre-order system has been launched to provide new services. Since September, it has undergone pilot operations on six routes, including Beijing-Sanya and Beijing-Chongqing, offering passengers personalized meal customization and management options.

l The comprehensive passenger notification system is expanding into new service areas. Further efforts are being made to introduce AI-powered customer services and improve service efficiency.

Management coordination

l The Company is actively advancing digital transformation initiatives in key management functions, including HR, finance, and internal control, to improve operational efficiency.

Digital Talent Enhancement

Developing a digital training system

Ø We perform comprehensive assessments of the Company's digital learning requirements and, based on the results, create tailored training strategies and a comprehensive, scenario-based digital training framework.

Enhancing specialized digital training

Ø We conduct focused digital training programs for mid-to-senior leaders and critical digital staff, integrating theory with practice to strengthen their digital mindset.

Ø we develop and disseminate three instructional videos focusing on Digital Research Deliverables, Business Process Optimization, and Digital Project Development. These resources equip all staff with essential tools and methodologies, ensuring effective execution of digital business strategies.

2. Safety Operations

SDG 3: GOOD HEALTH ANG WELL-BEING

SDG 9: INDUSTRY INNOVATION AND INFRASTRUCTURE

SDG 11: SUSTAINABLE CITIES AND COMMUNITIES

SDG 12: RESPONSIBLE AND PRODUCTION

Air China aligns its efforts with the "14th Five-Year Plan," embracing a people-centered philosophy and a deep commitment to the unique responsibilities of a flag-carrier airline. By integrating safety management, operational safety, and safety culture development, the company solidifies its achievements in safety innovation and steadfastly upholds the fundamental principles of safety. This ensures the absolute safety of aviation operations and the absolute safety of people's lives.

The "14th Five-Year Plan" in the Safety Scope

Advancing the flight training system

Optimizing the aircraft maintenance system

Fostering a collaborative work culture and enhancing vocational skills training

Implementing the three-year action plan for special safety rectification

Refining the safety operation management system

Deepening the construction of the safety management system

2.1 Safety Management

Air China rigorously implements the holistic national security concept and the political mandate of "two aspects of absolute safety", guided by the principle of "safety first, prevention foremost, and comprehensive management". As part of the three-year initiative for fundamental work safety improvements, the Company is committed to fulfilling all tasks in the "Hazard Elimination Year." It continuously strengthens the development of its five key safety operation systems and fosters a long-term mechanism for enhancing safety practitioners' professionalism. Additionally, Air China refines safety oversight roles and responsibilities, establishes an integrated "comprehensive safety" framework, and effectively translates persistent vigilance into confident action.

2.1.1 Safety Targets

In 2024, Air China further improved its safety performance, achieving a target air transportation incident rate of 0.08 incidents per 10,000 flight hours-surpassing the goal set in the "14th Five-Year Plan." Notably, no air transportation incidents attributable to Air China occurred, underscoring a successful and safe operational year.

2.1.2 Safety Governance Structure

Safety Management

l Air China strictly adheres to relevant laws and regulations, including the Work Safety Law of the People's Republic of China, the Civil Aviation Law of the People's Republic of China, the Supervision and Management Measures of Work Safety at State-owned Enterprises, and the Civil Aviation Administration's Regulations on the Management of Dual Prevention Mechanisms of Graded Control and Hidden Danger Investigation and Governance of Civil Aviation Safety Risks. These frameworks standardize safety management practices and ensure the inspection and governance of significant risks and hidden dangers across the Company and its operational units, effectively preventing and mitigating safety risks.

l Air China has established a Safety Committee responsible for researching and addressing major issues related to safety policies, resource allocation, and safety performance. The committee organizes, coordinates, mobilizes, deploys, and oversees the implementation of various safety management measures. Chaired by the Company's top executive, the Aviation Safety Committee comprises members such as the Chief Safety Officer, divisional leaders, and unit heads. Through safety discussions in Party Committee meetings, safety briefings conducted by the Safety Committee, and weekly safety planning meetings led by Company executives, the committee conducts in-depth analyses of safety issues. It emphasizes learning from specific cases to prevent recurrence, fostering a culture of continuous improvement in safety management.

Safety Operation System Construction

Air China has established five core systems for safe operations, anchored by a robust and exceptional safety management system. These systems integrate rigorous flight training, efficient operational control, meticulous aircraft maintenance, and proactive risk and hazard identification, collectively forming a comprehensive air safety defense mechanism. This ensures that safety principles are deeply embedded in every facet of aviation operations.

Safety Management System	● Based on the updated Requirements for the Development of a Safety Management System (SMS) for Aviation Operators, we developed the Aviation Safety Management Manual and associated work procedures, successfully passing the SMS supplementary operational certification by the Beijing Regulatory Bureau of the CAAC North China Regional Administration. ● We conducted a Flight Data Monitoring Big Data (QBD) research project focused on Safety Risk Monitoring for RNP AR Operations at Plateau Airports. ● We established a safety audit team to perform internal audits of the Aviation SMS and safety audits of Higher Plateau flight operations.
Flight Training System	● We updated the Standard Operating Procedures (SOP) for all aircraft types, along with recurrent training programs and instructor materials, to provide pilots with standardized and effective procedural guidance in compliance with CAAC regulations and our operational needs. ● In alignment with the introduction schedule and overall production rollout of the new C919 aircraft, we consistently provided operational policy support to personnel managing fleet transitions and aircraft type conversions. ● We conducted research on the evaluation of fresh cadet qualities, strengthened collaboration between airlines and flight schools, and enhanced the Company's management of flight school training quality. ● We focused on improving the professional conduct and mental well-being of the flight crew, strengthened their three key competencies, and ensured safe and seamless flight operations.
Operational Control System	● We actively promoted the development of an operational monitoring platform, completing system tuning, function optimization, and deployment of the cloud production environment to continuously enhance operational efficiency. ● We conducted in-depth and systematic research on the CAAC's policies regarding traffic flow and flight punctuality management, issuing procedures such as the Flight Schedule Adjustment Procedure, the Collaborative Mechanism for Domestic Flight Temporary Diversions, and the Workflow for Flight Traffic Management Positions. ● We issued the Air China Flight Normality Management Measures to improve flight support standards and operational quality in response to CAAC requirements.
Aircraft Maintenance System	● We developed an Aircraft Maintenance Planning Data Sandbox Simulation Platform to address challenges such as maintenance schedule forecasting and resource allocation using digital technologies, while promoting unified standards and centralized control. ● We refined our quality management system to enhance safety risk control measures, formulated prioritized and tiered control checklists based on business characteristics, and strengthened key risk prevention mechanisms. ● Through integration and innovation, we developed and established a Dynamic Assessment and Monitoring Mechanism for Safety and Quality, conducting big data quantitative analysis and modeling across 10 domains.
Risk Identification and Hidden Danger Investigation System	● We vigorously promoted voluntary reporting among all staff by developing an incentive program and optimizing the reporting feature on the Wing of Air China mobile App, ensuring real-time information reporting and immediate processing without overnight delay. Timely rewards and recognitions significantly increased employees' motivation to report voluntarily. ● We updated hazard source projects in line with the Company's management practices, continuously monitored trends, and effectively managed key risks. By closely overseeing daily safety operations, we issued 35 targeted risk warnings, including those for power bank fires/smoke and tail strikes, and implemented closed-loop controls.

2.1.3 Emergency Management

Air China has revised its Emergency Response Manual and Aviation Security Program in accordance with relevant regulations, including the Measures for Reporting Information on Major and Extraordinarily Serious Civil Aviation Emergencies, the Detailed Rules for Reporting Information on Major Emergencies of China National Aviation Holding Corporation Limited and Air China Limited, and the Notice on Further Clarifying the Centralized Reporting Responsibilities for Major Group Emergencies. Additionally, the Company has issued the AOC Major Emergency Information Reporting Process and the AOC Emergency Management Procedures to clarify the emergency response responsibilities of each position within the Airlines Operation Center (AOC), as well as emergency classification and grading, and corresponding emergency response procedures and measures, thereby enhancing the efficiency and accuracy of emergency responses. We have thoroughly implemented a detailed plan for hazard identification, investigation, and rectification to ensure rapid and effective actions in the face of various emergencies. Furthermore, we regularly undergo external audits, including the International Air Transport Association (IATA) Operational Safety Audit (IOSA) and the IATA Safety Audit for Ground Operations (ISAGO). These audits are completed item by item according to the audit plans and checklists for each professional system, and all issues identified in previous audits have been rectified. During the reporting period, our IOSA and ISAGO registrations remained valid.

In 2024, Air China organized a company-wide emergency drill focused on "Emergency Response to In-Flight Aircraft Threatened by Explosives" during the "Safe Production Month," thoroughly assessing the Company's capabilities in emergency response, decision-making, and coordination. During the reporting period, the Company organized four AOC in-flight emergency drills, including scenarios such as windshield damage and severe thunderstorms at Beijing Capital International Airport, to continuously improve the AOC's emergency management capabilities.

In 2024, leveraging the Air China, Shenzhen Airlines, and Shandong Airlines Operations Control Department AOC Construction Communication Sharing Mechanism, Air China collaborated with the operations control departments of Shenzhen Airlines and Shandong Airlines to share and analyze case studies of special incident management throughout the year. This collaboration significantly improved the emergency response speed and flight-specific incident handling capabilities of the operations control departments of all three airlines.

2.1.4 Safety Management Priorities

Advancing the three-year action plan for work safety	In alignment with the CNAHC Implementation Plan for the Three-Year Fundamental Improvement Action of Work Safety (2024-2026), we have systematically conducted self-inspections, self-corrections, and comprehensive risk and hazard identification efforts. These initiatives ensure the dynamic elimination of hidden dangers and effective control of major risks across our operations.
Enforcing accountability for work safety across all employees	We have fully aligned with the work safety measures of central enterprises, continuously advancing our safety governance system and refining the responsibility management framework to ensure individual accountability. In daily operations, we strengthened the responsibility chain for work safety, ensuring the effective implementation of the "three musts" principle (i.e., safety must be managed alongside industry, business, and production operations).
Implementing the rectification for the central inspection tour	We organized comprehensive learning sessions at all levels on General Secretary Xi Jinping's important expositions on work safety and emergency management, driving targeted rectification efforts to address weaknesses in work safety management. Additionally, we completed specialized inspections of the three critical safety assurance teams of the flight, operation control, and aircraft maintenance, and successfully fulfilled all tasks during the centralized rectification period.
Deepening the construction of long-term mechanisms for safety worker conduct	We strengthened the collaborative efforts of the Party, government, labor unions, youth leagues, and disciplinary bodies in joint management. Furthermore, we reinforced institutional regulations and oversight in response to unsafe incidents and recurring safety-related work style issues. By intensifying the management of employees' off-duty conduct, we fostered a heightened sense of responsibility and respect among all staff members.
Ensuring risk management for domestically produced aircraft	In collaboration with the Commercial Aircraft Corporation of China Ltd. (COMAC), we compiled the ARJ21-700 Aircraft Flight Safety Monitoring Information Sharing Report, driving performance improvements for domestically manufactured aircraft. We ensured high-quality introduction and operational support for the C919 aircraft by formulating operation support plans and dedicated risk management strategies, continually enhancing capabilities across various professional support domains.
Enhancing digital applications in safety management	We actively introduced advanced digital technologies to centrally manage and analyze flight technical data. Utilizing our QBD system, we comprehensively explored the value of flight data through multi-dimensional analysis and conducted specialized analyses to facilitate intelligent decision-making. These efforts enabled us to promptly identify, prevent, and address risks, significantly enhancing the safety and reliability of our flights.

Case: Inspections of Major Safety Hazards

In 2024, Air China's top leaders took a proactive approach to safety management by conducting quarterly on-site inspections to oversee the identification, investigation, and rectification of major safety hazards. These inspections were guided by a checklist-based management system, ensuring immediate corrective actions were taken to address identified issues. By maintaining a dynamic and responsive approach, Air China effectively eliminated hazards in a timely manner, achieving significant results in safety supervision and inspections. Throughout the year, all identified safety hazards were rectified as scheduled.

2.2 Safeguarding Passenger Safety

Air China recognizes that aviation safety is the cornerstone of every passenger's travel experience and a reflection of our corporate reputation and responsibility. We are committed to building a comprehensive safety system that ensures safe, and worry-free travel for all passengers. This commitment extends across every aspect of our operations, including flight safety, ground safety, cabin safety, and in-flight food safety.

2.2.1 Flight Safety

Flight safety management measures	● We developed a detailed checklist to systematically identify and rectify aviation security risks and hazards, ensuring systematic mitigation across all areas.
	● We organized targeted training programs, implemented rigorous inspection and assessment, and built a highly competent team of inspectors and instructors to uphold and advance our safety practices.
	● We leveraged the Flight Operation Quality Assurance monitoring system, big data analytics tools, and QAR data to continuously assess the flight performance of all aircraft models.
	● We actively assisted in investigating potential safety incidents to identify root causes and implement corrective actions. Through digital transformation, we strengthened safety management systems, achieving an intelligent upgrade in operational oversight.
	● We upheld the spirit of fostering "Three Reverences" (the reverence for life, for regulations, and for duties), and ensured the simultaneous cultivation of work ethic and technical skills. We conduct quarterly safety management seminars and share advanced cases of exemplary work ethic.

2.2.2 Cabin Safety

Cabin safety management measures	● We have continuously enhanced the SMS and refined the SOP for cabin safety. In addition, we strictly enforce special management requirements for the "three excesses" of carry-on baggage (excess weight, size, and pieces) to ensure more systematic and scientific cabin safety management and effectively prevent safety incidents.
	● We actively supported the campaign to "combat unruly passenger behavior by law", conducting thorough inspections and rectifications of safety hazards to ensure aviation safety.
	● We issued risk warnings and refined cabin crew procedures for equipment checks during boarding/deboarding, rescue operations, and passenger headcounts. Additionally, we enhanced risk management for critical areas including lithium battery safety, turbulence mitigation, cabin door operations, and in-flight injuries.
	● We have established the Cabin Department Aviation Safety Voluntary Reporting and Incentive Program to standardize the safety information reporting process and encourage staff to report potential risks and hidden dangers voluntarily.
	● We have refined the Cabin Service Department Safety Practitioner Work Style Long-Term Mechanism Construction Implementation Plan and compiled the Checklist of Typical Work Style Issues for Cabin Inspectors and Trainers, the Quantified Assessment Criteria for Flight Operation Managers' Work Style, and the Compendium of Typical Cabin Safety Incidents.

2.2.3 Ground Safety

Ground safety management measures	● We have reviewed and improved systems such as the Ground Services Department Aviation Safety Management Manual and the Ground Services Department Aviation Safety Management Procedures and established a sound ground safety management system.
	● We have developed the Ground Services Department Aviation Safety Voluntary Reporting Incentive Program, refined reward criteria, and increased incentives to fully motivate employees to proactively report potential safety risks and hazards.
	● We have performed aircraft testing and hazard identification for cabin and ground support operations during the introduction of the new C919 aircraft model, issued safety risk alerts, and strengthened risk management, to ensure smooth and stable ground support and ramp operations at Beijing Capital International Airport.
	● We implemented document reviews, comparisons between documents and actual operations, and self-assessment audits in phases based on the 2024 SMS audit requirements.
	● We have fulfilled safety supervision responsibilities and primary responsibilities and strengthened safety inspections in key areas and critical links in accordance with the Supervision Scheme for BGS Ground Agent.

2.2.4 In-flight Food Safety

Air China proactively conducts safety assessments for in-flight meals by implementing advanced risk assessment systems and adhering to rigorous food safety management standards. We enhance oversight across critical stages, including production, processing, storage, and transportation, to ensure all meals comply with stringent safety standards. In 2024, the Company continued its efforts to achieve certifications for ISO 9001 (Quality Management System), FSSC 22000 (Food Safety Management System), and HACCP (Hazard Analysis and Critical Control Points) to ensure the highest standards of food safety for in-flight meals.

Case: Enhancing Supervision Effectiveness and Fortifying the Defense Line for Catering Services during Flight Delays

On July 17, 2024, Air China conducted a targeted special supervision and inspection of the catering services provided by suppliers during flight delays. This inspection covered critical aspects, including raw material procurement and storage, production and preparation processes, transportation and delivery, as well as management practices. All inspected items were found to meet industry standards.

2.3 Safety Culture

Building a safety culture is fundamental to ensuring safe operations. In response to the current state of safety style development, as well as publicity and education initiatives, Air China has formulated and issued the 2024 Work Plan for Safety Culture and Style Development, Publicity, Education, and Training, updated the list of typical work style issues, and refined the long-term mechanisms for the work styles of safety practitioners. In 2024, the Company organized various activities, such as warning education on Shouldering Safety Production Responsibilities, live broadcasts to raise safety awareness, collection of best practices, selection of safety culture exemplars, and recognition of outstanding safety work styles. These efforts have cultivated a safety-conscious culture and enhanced safety personnel's awareness of the "Three Reverences" and their risk prevention capabilities.

3. Low-carbon Development

SDG 6: CLEAN WATER AND SANITATION

SDG 7: AFFORDABLE AND CLEAN ENERGY

SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION

SDG 13: CLIMATE ACTION

SDG 15: LIFE ON LAND

Air China is firmly committed to the principles of "green operations and sustainable development", actively aligning with national policies aimed at low-carbon transformation. Recognizing the urgent challenges posed by climate change, we are dedicated to optimizing and enhancing our environmental management system. To achieve this, we have implemented robust measures to strengthen energy and resource management, strictly control pollutant emissions, and explore innovative green and low-carbon development pathways to foster a harmonious balance and mutual benefit between economic growth and ecological sustainability.

The "14th Five-Year Plan" in the Environmental Scope

Proactively support the "dual carbon" strategy of "carbon peaking and carbon neutrality"

Improve the management system, and enhance management ability

Strengthen energy management to achieve low-carbon development

Fight the battle of pollution prevention and control, and defend the blue sky continually

Shape an image of a green state-owned aviation enterprise and demonstrate our corporate social responsibility

3.1 Environmental Management and Ecological Protection

Air China strictly implements laws and regulations related to environmental protection and actively promotes the construction of energy-saving and environmental management systems, ensuring the Company's environmental management is comprehensive, holistic, and harmonious. We deeply integrate environmental protection concepts into our operations to improve environmental standards and management efficiency. In accordance with laws and regulations such as the Energy Conservation Law of the People's Republic of China, the Environmental Protection Law of the People's Republic of China, and the Circular Economy Promotion Law of the People's Republic of China, as well as the requirements of the SASAC, we have formulated the Measures for the Management of Energy Conservation and Ecological Environmental Protection of China National Aviation Holding Corporation Limited (CNAHC) and Air China Limited. These measures standardize daily environmental management processes across multiple dimensions, including special fund management, supervision and implementation, assessment and rewards/penalties, education and training, carbon emission management, and statistical monitoring.

3.1.1 Environmental Management Enhancement

l We have established a comprehensive management system that includes a Leading Group for Ecological and Environmental Protection and its office, as well as dedicated teams at subsidiary enterprises, operating under a centralized planning and tiered management model. To ensure tailored oversight, we implement a categorized dynamic management mechanism based on unit characteristics, energy consumption, and pollutant emissions.

l In 2024, the Office of the Leading Group for Ecological and Environmental Protection held a green development meeting to review progress on green development initiatives outlined in the "14th Five-Year Plan" and specific carbon peak projects, while also defining key priorities for future green development efforts.

l To strengthen accountability, we have integrated energy conservation and environmental protection into our performance assessment management system. This includes promoting the signing of the 2024 Energy Conservation and Environmental Protection Responsibility Letters by all branches and subsidiaries, which clarify targets for energy conservation, environmental protection, and carbon emission assessment indicators. Additionally, environmental protection has been incorporated into the criteria for selecting advanced employees and organizations, fostering greater environmental awareness and engagement among staff and entities.

l We have also published the Environmental Management Implementation Plan to identify significant environmental factors and formulated the List of Environmental Laws, Regulations, and Other Requirements (2024 Edition). Furthermore, we conducted internal audits in 2024 for 13 key departments and 11 branches in Beijing, issued internal audit reports, and continuously monitored rectification progress. In the same year, Air China successfully obtained recertification of the ISO 14001 Environmental Management System.

3.1.2 Biodiversity Conservation

Air China strictly adheres to the Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on Environmental Impact Assessment, the Water and Soil Conservation Law of the People's Republic of China, and other relevant laws and regulations to protect the quality of the environment and biodiversity.

l In our biodiversity conservation monitoring initiatives, we have proactively identified potential risks to biodiversity and developed targeted strategies to mitigate them.

l We have launched the "Low-Carbon Green Travel" Program on the Air China App, offering passengers a range of public welfare activities that promote sustainable travel and environmental awareness.

l For all new, renovated, and expanded projects, we conduct comprehensive environmental impact assessments to embed ecological protection principles from the planning and design phases. To address potential ecological disruptions, we strictly enforce the "three simultaneities" principle-ensuring the simultaneous design, construction, and operation of environmental protection facilities alongside main projects. This approach minimizes the potential impact of our operations on the surrounding natural environment and biodiversity.

Case: Biodiversity and Habitat Conservation Initiative in Songjiang District, Shanghai

In 2024, the Air China Yangtze River Ecological Protection Fund established a public welfare platform dedicated to biodiversity and habitat conservation in Songjiang District, Shanghai. With an investment of RMB 450,000, this initiative aims to strengthen environmental and biological preservation efforts. During the year, a total of 122 volunteers were mobilized to conduct 10 habitat security patrols, ensuring the protection of local ecosystems. Additionally, 67 volunteers participated in five scientific monitoring events, during which they observed five mammal species, including the Chinese water deer, Amur hedgehog, and yellow-throated marten, documented 57 plant species, and recorded 29 bird species. Furthermore, 54 volunteers contributed to five habitat ecological construction activities, fostering public awareness and enthusiasm for biodiversity conservation.

3.2 Addressing Climate Change

Air China is committed to advancing the national goals of "carbon peaking and carbon neutrality". In alignment with relevant policies, including the 14th Five-Year Plan and China's Policies and Actions for Addressing Climate Change (2024) as well as the IFRS S2 Climate-related Disclosures issued by the International Sustainability Standards Board (ISSB), and the framework and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)---IFRS S2 Climate-related Disclosures, Air China integrates climate change response into its corporate strategic planning, risk management framework, and daily operational management, contributing to the global response to climate change.

3.2.1 Climate Governance

Ø Organizational Structure

We continuously optimize the governance structure for addressing climate change. The Carbon Peak and Carbon Neutrality Leadership Group, supported by the Leading Group for Ecological and Environmental Protection, is led by the Chairman and the President, with group members including the heads of major entities and key business personnel. The Leadership Group is responsible for making decisions on climate change response, energy conservation and emission reduction, ecological and environmental protection, as well as carbon peak and carbon neutrality goals. To ensure effective implementation, we have improved the environmental management reporting mechanism. Special working groups report work ledgers to the Office of the Leading Group for Ecological and Environmental Protection quarterly. Meetings are held as needed, and the office regularly reports the previous year's work summary and the key tasks for the current year.

Ø Action Plan

Air China, drawing on the 14th Five-Year Plan for the Green Development of Civil Aviation, has formulated the 14th Five-Year Plan Blueprint for Green Development to comprehensively promote the implementation of a green and low-carbon strategy. We have also compiled the Action Plan for Carbon Peaking, which focuses on six key areas of aviation fuel conservation, aviation carbon reduction, energy-saving technology improvement on the ground, carbon asset reserve, advanced green technology exploration, and green initiatives for all. Through these efforts, we strive to build an intensive green enterprise and achieve harmony between green development and high-quality operations.

The Principles of Action Plan for Carbon Peaking

Focus on a comprehensive and truthful principle

Focus on efficiency and reducing carbon emissions at the source

Focus on innovation-driven and technology-led development

Focus on openness and integration, taking multiple measures

3.2.2 Our Strategies

In alignment with national policy directives and industry development trends, Air China conducts a comprehensive analysis of potential climate risks and opportunities within its operations and across the upstream and downstream of its value chain. Building on this analysis, we integrate our strategic layout and long-term development goals to formulate contingency plans and action strategies tailored to address climate change risks. Our proactive approach aims to minimize the negative impact of these risks and tackle climate challenges with resilience and determination, ensuring sustainable growth and operational excellence.

Climate Change Risk Identification List and Response

Risk Type	Specific Risk	Risk Description	Risk Response
Transition Risk	Policy and Legal Risks	New climate-related laws, regulations, and policies are imposing increasingly stringent requirements on the aviation industry. For instance, tighter emissions restrictions on civil airlines could lead to higher operational costs and influence public travel habits, potentially resulting in fewer passengers and a decline in related revenue. The introduction of China's "dual carbon" goals (carbon peak and carbon neutrality) and the launch of the national carbon emission trading market are expected to heighten carbon emission requirements. Should the Company be included in the carbon trading system in the future, it may face additional costs due to insufficient carbon quotas, impacting financial performance.	Continuously updated environmental laws and regulations by incorporating key provisions into the self-inspection checklist and conducting regular compliance evaluations to ensure adherence to legal requirements. Explored and optimized greenhouse gas (GHG) emission reduction pathways, establishing short-term, medium-term, and long-term goals for carbon peaking and carbon neutrality. Regularly disclosed progress on GHG emission reduction to maintain transparency and accountability. Closely monitored national and local carbon emission policies and strengthened communication with regulatory authorities. Provided industry insights and practical experience to support the development of effective policies and regulations. Formulated carbon trading management strategies, including carbon price monitoring and early warning mechanisms. Implemented centralized management of carbon assets and optimized the carbon asset portfolio to maximize efficiency and value. Organized specialized training sessions on energy conservation and environmental protection, covering topics such as the current landscape and response strategies for carbon peaking and carbon neutrality in aviation, as well as interpretations of national energy conservation and environmental protection laws and regulations, supplemented by case studies for practical understanding.
	Technological Risk	In response to China's "Dual Carbon" goals (carbon peaking and carbon neutrality), the Company is committed to accelerating the deployment of energy-efficient and eco-friendly technologies and facilities. This includes scaling up dedicated investments in energy conservation and emission reduction initiatives to drive sustainable growth and align with national climate objectives.	Enhanced the electrification rate within the flight area, optimized the intelligent allocation of resources, and improved the efficiency of operational support for new energy vehicles. Implemented energy-saving and emission reduction practices, upgraded existing technologies, and introduced and developed innovative new technologies.
	Market Risk	The "14th Five-Year Plan" for civil aviation explicitly sets targets for the use of sustainable aviation fuel (SAF). However, a mature domestic SAF industry chain has not yet been established, and the price of SAF remains significantly higher than that of conventional fuels, creating additional cost pressures for the Company. The Chinese civil aviation industry is still in its development phase, with the per capita number of flights considerably lower than international levels. This indicates substantial future market demand and growth potential, which will inevitably lead to increased energy consumption and carbon emissions.	Continuously expanded the application and effectiveness of Sustainable Aviation Fuel (SAF[1]). Collaborated with the Civil Aviation Administration of China (CAAC) and the CATA to develop industry standards. Partnered with upstream and downstream enterprises in the SAF industry chain as well as scientific research institutes to promote the application and development of SAF in the aviation sector. Focused on core aviation operations by strategically managing aircraft fleet renewal and retirement, optimizing aircraft-route alignment, and implementing fuel-efficient measures. Drove energy conservation and carbon reduction across multiple dimensions, including the consistent replacement of Auxiliary Power Units (APU[2]) with ground power to minimize ground emissions.
	Reputational Risk	In the context of climate change being a major global concern, the aviation industry's carbon emission reduction efforts are under close scrutiny by various stakeholders. Failure to effectively and promptly implement these efforts could lead to a negative impact on the Company's public image, brand reputation, and revenue.	Took the preferences and needs of stakeholders as a guide to improve the communication mechanism with them, and conducted regular evaluation and research to better understand stakeholder expectations and address emerging concerns. Established diverse communication channels, including the official website, mobile App, and other public platforms, to facilitate transparent and accessible dialogue and actively accept complaints, feedback, and suggestions from stakeholders, fostering a culture of engagement, accountability, and continuous improvement.
Physical Risk	Acute Risk	Extreme weather events, such as typhoons, torrential rainfall, and floods, amplify the sudden physical risks to our daily operations, potentially causing flight delays, diversions, or cancellations. These disruptions can significantly reduce freight and passenger transportation capacity within the supply chain and transportation network. Extreme weather conditions may compromise aircraft performance and damage critical aviation infrastructure, thereby jeopardizing flight safety and operational reliability. Prolonged periods of extreme heat can lead to increased fuel consumption, negatively impacting fuel efficiency. Both extremely high and low temperatures elevate the likelihood of health and safety risks for employees, necessitating proactive measures to mitigate these challenges.	Developed specialized emergency rescue plans to address extreme weather events such as flooding, lightning, cold weather, typhoons, and heatstroke, enhancing the speed and efficiency of emergency responses. Promptly adjusted flight plans by continuously monitoring operations and conducting timely assessments and pre-analyses of changing conditions. Implemented measures to manage flight returns and diversions while providing comprehensive ground support to aircrews. Leveraged advanced models and adapted maintenance strategies in a timely manner to ensure the smooth and uninterrupted operation of the fleet, minimizing disruptions caused by extreme weather conditions.
Physical Risk	Chronic Risk	Scenarios such as global warming, rising sea levels, and tidal intrusion pose significant risks to operations, potentially resulting in a higher frequency and prolonged duration of temporary disruptions and maintenance activities. These environmental challenges may lead to increased operational costs.	Deployed a professional maintenance and troubleshooting team to ensure swift and effective resolution of operational issues, minimizing downtime and enhancing system reliability. Invested more funds in research and development (R&D) to innovate and improve repair and maintenance processes, boosting overall efficiency.

3.2.3 Risk Management

Air China has established a comprehensive risk management process, seamlessly integrating the identification, assessment, and management of climate risks into the Company's broader risk management system. The Company implements tiered control of climate risks, ensuring risks are addressed at appropriate organizational levels, and conducts regular reviews of risks across all levels to maintain proactive and effective risk mitigation.

Climate Risk Management Process

Climate Risk Identification

In alignment with national policies, industry characteristics, business models, and other relevant factors, we systematically identify the physical climate risks and transition risks that may impact our operations at different stages.

Climate Risk Assessment

We conduct scientific assessments of climate risks, thoroughly analyzing key factors such as the probability of occurrence and the extent of potential impact for each identified risk type.

Climate Risk Management

We integrate climate risk identification and management into our existing risk management system, ensuring a holistic approach to addressing climate-related challenges. By developing comprehensive response plans, we proactively mitigate the impact of climate risks on the Company.

3.2.4 Environmental Performance Data

In alignment with the Paris Agreement's goal of limiting global temperature rise to below 2°C, Air China has established a scientifically rigorous carbon reduction target based on its operational realities. To achieve this, we have formulated the Air China Green Development and Dual-Carbon Key Task List and the Action Plan for Carbon Peaking in accordance with the Opinions of the CPC Central Committee and the State Council on fully, accurately, and comprehensively implementing the new development concept and ensuring peak carbon dioxide emissions and carbon neutrality, the State Council's Action Plan for Carbon Dioxide Peaking Before 2030, and strict adherence to the requirements of governments at all levels and industry regulators. The two documents provide a clear blueprint for our dual-carbon efforts, guiding the steady progress of greenhouse gas (GHG) emission reductions through scientific planning. In 2024, Air China successfully achieved its year-on-year target of reducing carbon emission intensity.

GHG Emissions Data in 2024[3]

GHG Emissions Category	Unit	2024
Scope 1	CO2 emissions (1,000 tonnes)	27,677
Scope 2	CO2 emissions (1,000 tonnes)	204
Total GHG emissions	CO2 emissions (1,000 tonnes)	27,882
GHG emission intensity[4]	CO2 emissions intensity (g/tonne-km)	946.8

Indicator	Unit	2024
Owned aircraft	unit	930
Introduced new aircraft	unit	36
Retired aircraft	unit	11
Average age of the aircraft	year	9.9
Fuel consumption intensity	kg/tonne-km	0.301

3.2.5 Our Actions

Air China is fully committed to advancing the implementation of the Action Plan for Carbon Peaking, actively exploring pathways for carbon reduction, improving the carbon emission control system, enhancing carbon asset management, and steadily progressing toward green and low-carbon development. By doing so, we contribute significantly to the carbon peaking and carbon neutrality goals, demonstrating our unwavering commitment and industry leadership in fostering a sustainable future.

Ø Promoted carbon trading

In March 2024, Air China efficiently managed matters related to the EU Emissions Trading System (ETS). By April, we completed and verified the report on CO₂ emissions from civil aviation activities. In June, the Company submitted and secured third-party verification for its carbon emissions report in Beijing. By November, we had successfully fulfilled all carbon emission compliance obligations.

Ø Launched green travel services

Since 2021, Air China's "Low-Carbon Green Travel Program", available on the one-stop carbon offset platform, has provided passengers with carbon footprint calculation and carbon offset services for nationally certified emission reductions. Passengers can voluntarily participate in carbon emission reduction projects, such as domestic reforestation, using flight miles or cash payments. In 2024, about 9,895 individuals joined the program, collectively offsetting 1,993 tonnes of carbon dioxide emissions.

Measures for fuel savings and carbon reduction in flight operations

Effective control of flight returning and diversions	We prioritize safety and operational efficiency by implementing a comprehensive pre-flight assessment process. Before departure, we evaluate release conditions such as weather, flight routes, and aircraft status, while also monitoring flights that are cleared but not yet departed in real time. Any changes in operating conditions are pre-analyzed promptly, enabling us to take appropriate actions to mitigate risks. After takeoff, our ground monitoring team remains vigilant, providing continuous support to the crew through air-ground communication. This proactive approach assists the crew in managing emergencies effectively, minimizing the need for diversions or alternate landings. In 2024, this strategy successfully reduced flight returns and diversions by 237 flights.
Fuel optimization in computer flight plan	Air China has implemented a data-driven approach to optimize fuel efficiency through closed-loop adjustments of computer flight plan parameters. By focusing on narrow-body aircraft flights, we refined flight plan altitudes to better align with actual flight altitudes, enhancing operational precision and reducing fuel consumption. We conducted a thorough review of extra fuel policies in the backend management system for flight operation control and approval across all routes. Special attention was given to flights with less than 80 minutes of remaining fuel upon landing, ensuring that 80% of flights maintain at least 115 minutes of flyable fuel upon landing. We updated fuel consumption tables for various aircraft models and reduced extra fuel reserves for diversion segments. Through comprehensive screening, we eliminated unnecessary fuel allocations on specific routes, achieving significant fuel savings. In 2024, these initiatives resulted in a total fuel saving of 5,215.8 tonnes.
Continuous management and control of aircraft weight	We prioritize weight optimization as a key strategy to enhance fuel efficiency and operational performance. In 2024, we conducted a detailed assessment and calculation of the operating empty weight and center of gravity for 109 modified and regular aircraft, providing essential data for precise flight load planning. Following the reduction in the minimum flight weight limit for the C909 aircraft, we assigned dedicated personnel to closely monitor the use of ballast on flights. This initiative eliminated any unnecessary added weight, contributing to improved fuel efficiency. To support the operational integration of the C919 aircraft, we established special working groups to refine 32 preparatory tasks across six major categories. During operations, we maintained close monitoring of flights and restricted the use of ballast, ensuring comprehensive management and control of flight weight. These efforts resulted in significant fuel savings, totaling 318 tonnes in 2024.
International route optimization	We are committed to enhancing fuel efficiency and operational performance through strategic route optimization. In 2024, we conducted an in-depth study of the global flight route layout and optimized 87 international and regional paths by factoring in meteorological conditions and airspace control dynamics. By avoiding congested airspace and strategically leveraging high-altitude winds, we achieved significant fuel savings. For instance, the optimized Beijing Capital International Airport to Islamabad route resulted in per-flight fuel savings equivalent to 431 kilometers of range. We meticulously planned and adjusted key routes such as Jakarta to Beijing Capital International Airport and Rome to Hangzhou, significantly shortening flight distances. These optimized routes were flown 3,161 times in 2024, collectively saving 2,072.9 tonnes of fuel.
Domestic route structure optimization	In 2024, we implemented significant adjustments to enhance the air corridor structure and flight procedures across key regions. We optimized 160 flight routes within the Shanghai-Kunming major air corridor, covering 91 cities, 39 waypoints, and 12 airports. This initiative streamlined the air corridors connecting the eastern and western regions, improving overall efficiency. We adjusted the flight procedures of three Beijing-Tianjin routes, implementing aircraft arrival diversions and utilizing temporary route procedures. These changes enabled omnidirectional departures from the runways of Beijing Capital International Airport and Beijing Daxing International Airport, significantly shortening departure routes. We optimized the utilization of temporary air routes, benefiting multiple routes at Urumqi Tianshan International Airport by reducing flight distances. These combined efforts resulted in substantial fuel savings, with a total of 1,308.9 tonnes of fuel conserved in 2024.

Case: Green and Low-Carbon Actions in 2024

Air China Headquarters

On June 5th, World Environment Day, Air China organized a green-themed flight event titled "Beautiful China, Soaring with Heart" on its CA1935 flight from Beijing to Nanning. At the Beijing departure gate, passengers boarding the themed flight were gifted eco-friendly notebook sets made from stone paper and recycled plastic bottles. They were also encouraged to use electronic boarding passes for a paperless travel experience. All tableware and packaging on board were made from degradable or recyclable materials. Upon landing, the flight's carbon dioxide emissions were fully offset using China Certified Emission Reductions (CCER), marking it as a carbon-neutral flight.

Shandong Aviation Group Corporation

On May 15th, National Low-Carbon Day, Shandong Aviation Group Corporation actively promoted a "Green Flights, Beautiful China" themed flight campaign on six outbound flights from Jinan, Qingdao, Yantai, Xiamen, Beijing, and Urumqi. During the flights, the purser used the in-flight PA system to educate passengers about the significance of Energy Conservation Week and Low-Carbon Day. Interactive quizzes and energy-saving experience-sharing sessions engaged passengers, inspiring them to adopt green and low-carbon practices in their daily lives.

Air China Southwest Branch

On May 16, 2024, the "Blue Journey" cabin crew team from Air China Southwest Branch successfully organized a green-themed flight event, "Green Transformation, Energy Efficiency Push," on flight CA4503 from Chengdu Shuangliu to Shanghai Pudong. The crew highlighted Air China's strides in energy conservation and emissions reduction, organized engaging in-flight activities to promote green development concepts, and successfully enhanced passengers' environmental awareness.

Air China Guangdong Branch

During Energy Conservation Week, Air China Guangdong Branch initiated a poetry event titled "Go Green Together", focusing on energy conservation and environmental protection, and a campaign to collect green office practices under the slogan "Lead by Example, Small Actions Matter". The activities resulted in 15 poems from 14 employees and 22 practical green office ideas, energizing the Company's sustainability efforts.

Air China Hubei Branch

On May 17, 2024, in response to the week-long national energy conservation campaign, Air China Hubei Branch partnered with China Eastern Airlines Wuhan Branch and the Hubei Supervision Bureau to co-organize a green and low-carbon cycling event titled "City Cycling". Under the theme "Cycle for Leisure, Go Green on Wheels", the event promoted green and low-carbon commuting by encouraging staff to cycle, spreading awareness of energy conservation and carbon reduction, and advocating for a green and healthy lifestyle.

Air China Zhejiang Branch

On May 16, 2024, Air China Zhejiang Branch hosted an environmental awareness event at the staff cafeteria, centered on "Reducing Disposable Tableware." The event featured interactive quizzes, and a signature pledge, allowing employees to learn about sustainability in a fun and relaxed atmosphere while reinforcing their commitment to eco-friendly practices.

Case: Hosting the SAF Technical Pathway Challenge for Chinese Students

From May to October 2024, Air China, in collaboration with Airbus China and the Second Research Institute of CAAC, co-hosted the SAF Technical Pathway Challenge for Chinese Students-an innovative initiative to advance sustainable aviation solutions. The competition aimed to inspire innovation among students, explore new Sustainable Aviation Fuel (SAF) technical pathways and business models tailored to China's unique context, and promote collaboration across industry, academia, and research to strengthen the SAF value chain.

3.3 Resource Utilization

Air China is committed to integrating energy conservation, consumption reduction, and resource efficiency into every aspect of its operations. Prioritizing sustainable practices, the Company actively promotes recycling, explores innovative energy solutions, and strives to establish itself as a leading resource-efficient aviation enterprise.

3.3.1 Energy Management

Air China rigorously complies with relevant laws and regulations, including the Energy Conservation Law of the People's Republic of China and the Measures for the Administration of Energy Conservation of Major Energy-Consuming Entities. To advance systematic energy management, the Company has developed the Action Plan for Carbon Peaking. Under the guidance of the Green and Low-Carbon Transformation Group, part of the Special Task Force on Carbon Peaking and Carbon Neutrality, Air China is driving low-carbon infrastructure projects. These initiatives focus on biofuel applications, vehicle electrification, photovoltaic and solar thermal utilization, clean electricity adoption, building efficiency enhancement, aviation material recycling, and energy recovery. In 2024, Air China achieved a 100% utilization rate of APU alternatives.

Main Measures for Energy Management

We implemented green flight procedures by focusing on critical fuel-saving operations, optimizing fuel-saving strategies, incentivizing flight crews to proactively conserve fuel, and improving fuel efficiency during flights. As of December 31, 2024, these efforts resulted in cumulative fuel savings of approximately 315,800 tonnes.

We promoted the routine use of APU alternatives by enhancing incentive mechanisms and strengthening operational training for personnel. This ensured full utilization of APU alternative equipment during aircraft ground parking, significantly minimizing energy consumption.

We updated the management model for production support vehicles by integrating advanced intelligent technologies and establishing an intelligent vehicle management platform. This enabled precise scheduling and real-time monitoring, significantly improving operational efficiency. As of December 31, 2024, the electrification rate of ground support vehicles reached 39%, reducing carbon dioxide emissions by 27,479 tonnes and showcasing notable green benefits.

We continuously optimized energy metering capabilities by introducing cutting-edge information technology and building an intelligent hub for energy-saving management. This allowed for precise control of energy flow and equipment energy consumption, effectively enhancing the overall resource utilization rate.

We refined the management standards for No Fault Found (NFF) components, minimizing unnecessary dismantling and focusing on aviation material recycling. In 2024, six consumable parts were reclassified as repairable, reducing the need for new part purchases and indirectly cutting down on manufacturing-related carbon emissions.

Case: Air China Century Building Receives Authoritative Recognition

The Air China Century Building is committed to establishing a sustainable operational and management model rooted in green, low-carbon, and zero-waste principles. By actively implementing zero-waste office practices, the building has achieved remarkable success in high-quality development, sustainable progress, and industrial green transformation. It has become a prominent green showcase for downtown Beijing and the CBD business district, setting a benchmark for eco-friendly commercial spaces. In 2024, the building earned the prestigious title of Zero-Carbon Operation Demonstration Project, recognizing its adherence to stringent zero-carbon operational standards for commercial buildings and its alignment with the WorldGBC Asia Pacific Net Zero Readiness Framework. Additionally, it was awarded the highest level of certification-Platinum-under the LEED-EB V4.1 O+M system.

Case: Continuously Promoting SAF

On September 19, 2024, Air China hosted a themed flight event titled "Green Skies, SAF Flies" on its CA4043 flight from Chengdu to Wuhan. At Chengdu Shuangliu International Airport, the airline set up interactive displays and distributed informative brochures to promote SAF and raise passenger awareness about its environmental benefits.

3.3.2 Water Management

Air China adheres strictly to relevant laws and regulations, including the Water Law of the People's Republic of China, and has established comprehensive Water Management Regulations to minimize water consumption. With a commitment to promoting efficient water resource utilization, the Company consistently refines its water management strategies. These efforts underscore Air China's dedication to sustainable practices and environmental stewardship.

Main Measures for Water Management

To tighten control over building water usage, the Company conducts thorough inspections of water supply lines through scheduled patrols and random spot checks, promptly addressing leaks and drips to eliminate water waste at the source.

Regular and comprehensive leak inspections are performed on fire water and domestic water tanks, while the fire water discharge management process has been streamlined, with rigorous assessments to minimize discharge frequency.

Improved the recycling efficiency of cooling water in the cooling system through scientific control, ensuring the recycling rate remains steadily within an economically viable range.

All 137 traditional faucets in the cafeteria have been upgraded to energy-efficient models, allowing precise control of water flow and significantly reducing daily consumption through hardware improvements.

Introduced reclaimed municipal water to meet the irrigation needs of the park's green spaces, utilizing reclaimed water for plant nourishment and expanding the use of non-traditional water sources.

Water Consumption

Indicator	Unit	2024
Office water consumption	1,000 tonnes	5,424
Office water consumption density	tonnes/person	51.7

3.4 Pollution Prevention

Air China is committed to rigorous management of pollutant emissions through continuous refinement of processes and standards, strengthening of its emission management system, and active advancement of key pollution control initiatives. These efforts demonstrate the Company's dedication to environmental protection and its steady progress toward winning the critical battle against pollution.

3.4.1 Waste Gases Management

Air China adheres strictly to the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, the Integrated Emission Standard of Air Pollutants, the Standard for Pollution Control on the Municipal Solid Waste Incineration, and other relevant laws and regulations. In alignment with these standards, the Company has established the Waste Gas Emission Management Procedures under the Air China Environmental Management Manual. These measures ensure rigorous control and management of emissions generated during operations. To further reduce emissions, Air China has implemented effective initiatives, including the adoption of new energy vehicles, which accounted for 80% of the production support fleet in 2024.

Main Measures for Waste Gas Emissions Reduction

Air China has established a regular monitoring mechanism for boiler waste gases, canteen fumes, and industrial waste gases. The Company strictly adheres to emission standards, conducting regular checks to ensure all types of emissions meet regulatory requirements.

Air pollutant control devices and online monitoring facilities have been installed across operations. These systems enable real-time tracking and precise adjustments throughout the waste gas treatment process, ensuring optimal efficiency and compliance.

To minimize emissions from APUs, Air China prioritizes the use of ground power and air conditioners for all aircraft connected to air bridges. By December 31, 2024, the Company had signed APU substitution agreements with all eligible domestic airports, significantly reducing aircraft ground waste gas emissions.

Air China focuses on reducing vehicle emissions within airport premises by intensifying efforts in emission reduction retrofits. A special initiative for self-inspections and rectifications of diesel vehicles has been launched to ensure retrofitted vehicles comply with waste gas emission standards.

The Company accelerates the shift from oil to electricity by widely deploying new energy models, aiming for full coverage. Air China adheres to the principle of simultaneous promotion of vehicles and charging infrastructure, achieving shared charging within the Company through self-built charging piles to support the transition to green transportation.

As of December 31, 2024, we had upgraded emissions for 1,742 diesel vehicles, maintained a fleet of 1,402 new energy vehicles, and installed 465 self-built charging piles.

3.4.2 Wastewater Management

Air China strictly complies with the Water Pollution Prevention and Control Law of the People's Republic of China, the Integrated Emission Standard of Water Pollutants, and the Regulation on Urban Drainage and Sewage Treatment, among other relevant laws and regulations. To ensure rigorous oversight of the wastewater discharge process, the Company has established the Wastewater Discharge Management Procedures in alignment with the standards and guidelines outlined in the Air China Environmental Management Manual, ensuring that wastewater management practices are both effective and sustainable.

Air China's Main Measures for Wastewater Reduction

Air China conducts regular monitoring of sanitary wastewater to ensure stable compliance with discharge standards. The Company strictly upholds environmental protection bottom lines, prioritizing sustainable practices in operations.

The Company is equipped advanced wastewater treatment facilities and online monitoring devices. These systems enable real-time data collection, transmission, and analysis throughout the wastewater treatment process, ensuring the efficient and stable operation of facilities.

In 2024, we treated 667,000 tonnes industrial wastewater with industrial wastewater treatment rate of 100%.

3.4.3 Waste 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 Environmental Pollution by Solid Waste, the Technical Policy on the Prevention and Control of Pollution Caused by Hazardous Waste, and the Provisions on the Administration of Urban Construction Garbage. To ensure rigorous waste management, the Company has established internal systems, including the Solid Waste Management Procedures and the Emergency Response Plan for Hazardous Waste for the Ground Service Department. These systems enable strict control over all types of waste. The Company has signed the Hazardous Waste Disposal Agreement with qualified third parties to ensure that maintenance waste is handled in full compliance with regulations throughout its lifecycle-from collection, storage, and transfer to disposal. This achieves standardized management and the goal of 100% compliance in waste discharge. Additionally, Air China organizes regular emergency drills for hazardous waste leaks, effectively enhancing employees' response speed and coordination levels in handling environmental emergencies. In 2024, the Company experienced no hazardous waste leakages and received no administrative penalties related to pollution.

Disposed Hazardous Waste (tonne)[5]

Category	2024
Waste organic solvents and organic solvent-containing waste	156.71
Waste mineral oils and mineral oil-containing waste	291.50
Oil/water, hydrocarbon/water mixtures, or emulsions	1.18
Dye and paint waste	68.46
Organic resin waste	2.67
Photosensitive material waste	1.20
Surface treatment waste	269.64
Mercury-containing waste	2.07
Lead-containing waste	3.27
Spent acid	42.30
Spent alkali	30.00
Other wastes	631.45
Total wastes	1,500.45

Main Measures for Waste Reduction

• "Paperless" convenient travel: In 2024, Air China's paperless travel service platform enabled 42.724 million passengers to book tickets, select seats, check in, and self-check baggage without the need for physical documents. This initiative not only improved travel efficiency but also significantly enhanced eco-friendliness by reducing paper waste.

• Personalized meal options: Air China introduced a reward system for passengers who opt out of meals on demand, effectively curbing food waste. In 2024, about 8,828 passengers chose to decline meals as needed, contributing to the Company's waste reduction efforts.

• Plastic reduction and waste minimization initiative: Since 2022, Air China has completely phased out single-use plastic products on domestic flights and in its self-operated lounges, replacing them with recyclable or biodegradable materials. By 2024, this initiative was extended to international flights, achieving the goal of replacing all cutlery, cups, stirrers, and other products in both domestic and international flights, as well as airport lounges, with eco-friendly alternatives.

• Green office practices: Air China has actively promoted a culture of frugality, low-carbon living, and environmental awareness among employees. The Company implemented standardized and green management strategies for office equipment, such as air conditioning, lighting, and printers. Employees were encouraged to adopt water and energy-saving habits, embrace green commuting, and support sustainable consumption. These efforts have fostered a new green and low-carbon office environment.

Ø Household waste[6], kitchen waste, and other hazardous waste are sorted out and transported to the designated waste storage area for unified recycling and treatment by third parties. In 2024, Air China disposed of 5,065.84 tonnes of kitchen waste.

Ø In-flight waste is transported to the designated area of the airport and handed over to the airport for unified recycling and treatment.

3.4.4 Noise Management

Air China prioritizes the prevention and control of noise pollution. When selecting aircraft, models equipped with advanced noise-reduction technologies are preferred. The Company conducts regular inspections and maintenance of engines to ensure optimal performance, minimizing abnormal noise caused by malfunctions or aging. Optimized takeoff and landing procedures are adopted during flight operations, and close coordination with airports ensures reasonable scheduling of flights and runway usage, reducing noise impacts on nearby residential areas. During ground parking, ground power and air conditioning units are used instead of the aircraft's APU, effectively cutting down on ground noise.

4. Quality Service

SDG 2: ZERO HUNGER

SDG 17: PARTNERSHIPS FOR THE GOALS

Air China consistently provides sincere service, improves the management of service quality, continuously innovates service products, promotes digital services, enhances service capabilities, and actively establishes a new benchmark for world-class airline service.

The "14th Five-Year Plan" in the Service Scope

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 Service Quality Management

Air China focuses on quality control, establishing a comprehensive quality management system that spans the entire service management lifecycle and the full value chain of the Company. It has formulated regulations such as the Service Quality Inspection Management Regulations, the Service Quality Risk and Hazard Management Regulations, and the Service Quality Prevention and Corrective Action Management Procedures. A graded management mechanism has been implemented, clearly defining departmental roles and standards. Through strict process management, as well as regular inspections and evaluations, we promptly identify service weak links, correct potential issues, and further service management improvement and quality enhancement.

4.1.1 Quality Management System

Quality Control

Air China has clearly defined service quality risks and hazards, establishing a systematic prevention and corrective mechanism that covers everything from "pre-event" risk prevention to "post-event" issue rectification. This comprehensive approach ensures a robust closed-loop management system for service quality. The Company's primary quality management department is responsible for identifying and managing service risks and hazards discovered in key areas, including risk identification, in-process quality monitoring, and post-event issue investigation. The department oversees risk mitigation, control measures, and service corrective actions through a closed-loop process, with a clear definition of roles and workflows to ensure continuous improvement and enhancement of service quality. In 2024, no major safety or quality incidents related to production or services occurred, nor were there any associated financial impacts or damages.

Audit

Air China invited the China Quality Certification Center (CQC) to conduct this year's third-party quality audit. The audit was based on relevant laws and regulations, including the CAAC's Guidelines for the Construction of Public Air Transport Passenger Service Quality Systems, the ISO 9001:2015 quality management system standard, the Company's service quality management system documentation, and other applicable standards. Through interviews and sampling, sufficient evidence was gathered to validate the compliance and effectiveness of the Company's service quality management system. During the Reporting Period, three qualified subsidiaries, six business management units, and three management support divisions passed comprehensive document reviews and on-site audits.

4.2 Customer Experience Enhancement

Air China takes passenger needs as its operational focus, striving to ensure regular flight operations. We actively listen to passenger feedback, strictly safeguard personal information, and continuously enhance service quality. Guided by the principle of responsible marketing, we prioritize the protection of passenger rights throughout our service processes.

4.2.1 Guaranteeing Flight Regularity

Flight regularity management	● We have released Regulations on Flight Regularity Management, aiming to standardize organizational structures, clarify roles and responsibilities, enhance management systems, optimize performance evaluations, and strengthen training, thus improving efficiency in flight regularity management. ● Collaborating with relevant departments, we conducted seasonal flight schedule evaluations, analyzing segment times of flights operated during the winter and spring seasons. This analysis provided data support for planning the 2024 winter and spring flight schedule. ● We have standardized flight regularity reward and penalty measures by issuing the Production Operation Reward and Punishment Form to relevant support units based on actual operational conditions. We ensure to document event details and regularly release bulletins on flight regularity rewards and penalties.
Flight regularity assessment and statistics	● We complete the target value setting for flight regularity assessment items. ● We establish monitoring procedures to continuously track indicators such as flight regularity rate and delay rate, and issue relevant notifications. ● We establish a data verification workflow to cross-check data every day from the Civil Aviation Administration's flight operations management system, enhancing the accuracy of our flight data.
Irregular flight analysis	● Focusing on issues such as return flights, six-hour advance adjustments, aircraft malfunctions, and weather-related delays, we analyze the irregular flight data based on Civil Aviation Administration statistics. By the end of the Reporting Period, 41 briefings on irregular flights had been developed.
Strengthening internal regularity management of the Operation Control Center	● We launched a special campaign in 2024 to improve flight regularity during peak season, with recognition and rewards for participating units and individuals to enhance performance on flight regularity.

Flight Regularity Performance[7]:

In 2024, the flight punctuality rate reached 88.07%

The flight execution rate was 99.0%

4.2.2 Response to Customer Demands

l We have developed internal management systems such as Management Regulations for Service Remediation Authorization and Passenger Satisfaction Survey Management Regulations, establishing a clear, organized, and efficient customer service response system to ensure timely responsiveness to customer demands.

l We have formulated the Service Reward and Punishment Management Regulations and established a service rewards and punishment mechanism to ensure effective response and resolution of customer concerns. Additionally, we designed an online passenger survey questionnaire to build and continuously improve the passenger satisfaction evaluation system, driving ongoing enhancement and optimization of products and services.

l We value customer feedback and have put in place the Complaint Management Regulations and other internal management systems to enhance the complaint response and feedback mechanism. A three-tier customer complaint response and feedback system has been set up to streamline the complaint channels and ensure service reliability.

l We have established mechanisms for analyzing and reviewing typical service cases and conducted specialized analyses on 9 issues including irregular flights, complaint trends, diverted flight support, and in-flight meal quality. Based on these analyses, we implemented and completed 10 dynamic service improvement measures.

2024 Service Performance Statistics[8]

l International luggage loss rate: 1.38 pieces/thousand passengers; Domestic luggage loss rate: 0.09 pieces/thousand passengers

l Total number of passenger complaint cases from all channels: 55,242 cases; Passenger complaint handling rate: 100%

l Passengers' overall satisfaction: 87.9 points

l Premium passenger satisfaction: 88.3 points

l Ground service satisfaction: 86.9 points

l Ticket service satisfaction: 89.3 points

l Cabin service satisfaction: 88.2 points

4.2.3 Privacy and Data Security

Air China strictly complies with the Cybersecurity Law of the People's Republic of China, Data Security Law of the People's Republic of China, and Personal Information Protection Law of the People's Republic of China, among other applicable laws and regulations in its operational regions. The Company has developed and implemented internal policies such as Privacy Policy, Data Management Regulations, Cybersecurity Management Measures, Data Security Management Implementation Guidelines, and Passenger Personal Information Management Regulations to ensure proper governance of privacy protection and information security. These regulations cover all business lines, subsidiaries, and suppliers. These measures are designed to prevent unauthorized access, disclosure, usage, modification, damage, or loss of data. Following Supplier Management Regulations, Air China incorporates customer privacy and data security assessment requirements into all supplier onboarding and evaluation processes. We are committed to not renting or selling users' personal information to third parties, and user information is only shared with third parties to complete transactions or services, provided explicit consent has been obtained from the user.

Organizational Mechanism Development

Air China has released the Notice on Adjusting the Cybersecurity Management Committee, aiming to establish unified standards for privacy and data security management. The Cybersecurity Management Committee, the Company's highest decision-making body on cybersecurity, is led by senior management and is responsible for overseeing information security and data compliance. Under the committee, a leadership group handles security-related decisions, while an office under the group focuses on establishing security mechanisms. Individual units oversee daily network security operations. Additionally, the Company conducts annual passenger privacy risk assessments to ensure the effectiveness of its cybersecurity management.

In 2024, the Company's cybersecurity/information security certification rate reached 100%, achieving ISO/IEC 27001 re-certification, completing the PCI-DSS certification review, and successfully passing Level 3 Classified Protection evaluations for 11 systems, with no data breach incidents or related losses reported.

Technical Support	● We have completed intranet access control, implemented multi-layered internet defense mechanisms, conducted application and system vulnerability scans, ensured WEB application protection, and established centralized data storage and backup solutions. ● We leverage a centralized monitoring and management platform to monitor various information security devices in real time, with focused control over key information systems and devices used by personnel. ● Based on professional cybersecurity threat intelligence, we promptly communicate and address various external security incidents and vulnerability information. ● We conducted annual penetration testing on core business systems containing sensitive data and promptly addressed application vulnerabilities to gradually enhance the security capabilities of information systems.
Information Collection Procedures	● Through the Privacy Policy and related documents, users are informed about the collection, use, deletion, retention, and protection of personal information. Users are also guided on how to exercise their rights, ensuring their right to be informed.
Secure Information Storage	● Following legal requirements regarding the location, method, and duration of personal information storage, we employ technologies like encryption and de-identification for data handling. Regarding the storage of passenger information, we will store passenger information for the shortest possible time, and upon exceeding the time limit, we will delete or anonymize the personal information of passengers.
Emergency Response	● We have developed a contingency plan for personal information security incidents, along with mechanisms for vulnerability reporting and response, and other related emergency handling strategies. We define clear processing procedures for information security incidents to actively mitigate security risks. ● We conduct safety emergency drills and defense exercises to prevent unexpected incidents.
Information Security Audit	● An external audit agency was engaged to assess the compliance and security of the information system. During the Reporting Period, one internal audit and one external audit were conducted on the Company's information systems and policies. Additionally, audits such as the CAAC's aviation security audit, cybersecurity level protection assessment, and the IATA IOSA audit were carried out, achieving a 100% risk rectification rate.
Privacy Protection Training	● In 2024, Air China conducted data security training for all employees. A series of specialized online training sessions were held, covering topics such as cybersecurity policies and regulations, key infrastructure cybersecurity protection, data security, personal information protection, and prevention of telecommunication fraud. ● We conduct pre-employment data security training for all personnel of system development contractors.

4.2.4 Responsible Marketing

Air China adheres to responsible marketing practices, strictly complying with 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, among other regulations. The Company has formulated and issued internal policies, such as the Announcement on Further Standardizing the Application of Marketing and Promotional Materials to continuously optimize its internal systems and strengthen management foundations. In product marketing, Air China avoids any form of exaggerated or false advertising. While showcasing the Company, brand, and services, we disclose legal risks, activity terms, and other relevant information, clearly outlining existing project risks. This ensures customers' right to know is fully respected, reducing potential conflicts, disputes, or legal actions caused by insufficient communication.

4.3 Quality Enhancement

Air China is committed to providing comprehensive and meticulous services to all passengers, ensuring that every traveler enjoys their flight experience. Keeping pace with the times, we vigorously promote the upgrading and application of digital services, offering more convenient and efficient travel solutions.

Smart Travel Service	● We continued to promote the automatic check-in product, covering 5 airlines. ● We launched self-service check-in services at terminals in Hong Kong and Singapore, now available at 8 international and regional locations. ● We developed a promotional plan to facilitate the electronic boarding pass clearance service at Beijing Capital International Airport for international and regional flights, launching the service on 10 airlines in the Asia-Pacific region.
In-flight Entertainment	● Focusing on brand recognition, visual appeal, interactive experience, and passenger navigation paths, we comprehensively upgraded the in-flight online platform interface, providing passengers with a brand-new in-flight entertainment experience. ● In line with current events, we launched themed activities such as the Silk Road Journey, Beijing Central Axis City Walk, and the 75th Anniversary of the Founding of the PRC. ● We developed our flagship product, Extraordinary Cinema, focusing on curating exceptional foreign-language films in lesser-seen categories on mainstream online platforms, creating a diverse and unique film library.
In-flight Meals	● We launched an in-flight meal pre-order management system to meet passengers' personalized dining preferences. ● We introduced healthy meals with low calories, sugar, and fat-Yunxiang Light Meals, along with several regional specialty dishes. ● We developed and launched our exclusive Fresh Caviar menu.
Ground Service	● Full-process baggage tracking has been implemented at 12 newly launched overseas stations, covering a total of 65 destinations by the end of the Reporting Period. Data sharing for baggage tracking has been achieved among Air China, Shenzhen Airlines, and Shandong Airlines, along with query functionalities made available on Air China's mobile platform. ● We have accelerated the expansion of centralized control operations for international flight departures. By the end of the Reporting Period, centralized control services had been extended to 129 domestic and 51 international flight destinations. The average daily number of centralized control flights had reached 1,450, accounting for 93% of our total flights.
Services and Products	● We organized themed activities for the lounge during the Dragon Boat Festival and National Day, established the "Fengtinghui" brand collaboration management mechanism, and hosted two Fengtinghui cultural exhibitions to enhance brand influence. ● We added the express airline from Chengdu to Shenzhen. As of the end of the Reporting Period, a total of 8 express airlines had been established, including 4 airlines jointly operated with Shenzhen Airlines and Shandong Airlines. ● We provide comprehensive services for first-time passengers, including travel guides, ground assistance, and in-flight guidance, while offering customized products tailored to their needs. ● The C919 is equipped with exclusive Air China-designed business class and economy class passenger seats, cabin interior designs, as well as customized cabin announcements, onboard entertainment programs, and eight types of in-flight supplies. ● We launched a series of distinctive products, including the Golden Prosperity tableware for business and first-class dining on Beijing express round-trip flights, as well as two Love On-the-Go items: a storage bag and a children's puzzle coaster. ● We introduced the innovative baggage transfer countdown service for the first time at Wuhan airport.
Ticket Refund Service	● We launched the original channel refund management system, enabling a fully systematic and closed-loop management process for refund operations via the original channel. ● On the Air China mobile platform, we significantly expanded the applicability of the no-reason ticket refund coupon to include all tickets sold through domestic channels. The two-hour free refund and discounted refund service has been fully upgraded, with enhanced policies now covering all domestic and international airlines. For instances where travelers purchase Air China tickets separately and face irregularities such as flight cancellations, a one-stop free refund service has been introduced, streamlining the ticket refund process for passengers.

Unaccompanied Children Service	Ÿ Air China App has launched a booking service for unaccompanied minors. Ÿ We have optimized the meal selection criteria to ensure that non-spicy meals suitable for children are included in the regular meal plan.
In-flight Wheelchair	Ÿ Free in-flight wheelchair services are provided for passengers who are physically fit to fly but do not have the ability to move independently. This service assists passengers in moving to or from their seats on the plane, going to and from the restroom, etc.
Baby Bassinets	Ÿ Air China provides baby bassinets in business class, premium economy class, and economy class on international routes operated by certain aircraft types.
Special Needs Services	Ÿ We provide services such as handling check-in procedures and assisting with luggage check-in/pick-up for passengers with hearing and visual impairments.
Small Animal Transportation	Ÿ On the Air China App and the official website, you can book the service of point-to-point transportation of small animals on flights operated by Air China and bearing Air China flight numbers.

Support for Red Cross Medical Relief Operations

Air China actively supported the Red Cross Society of China's overseas medical team in its Angel's Journey: Belt and Road Serious Illness Child Humanitarian Rescue Initiative held in Ulaanbaatar, Mongolia. On November 17, 2024, Air China facilitated the travel of 50 individuals, including patients, their families, and team leaders, on flight CA902 to Beijing for surgical treatment, demonstrating its commitment and responsibility.

Temporary Stretcher Service

On April 21, 2024, a young boy named Danzeng Suolang was involved in a car accident and faced a risk of amputation if treated locally. To ensure his safety and timely medical care, Air China prioritized the principle of saving life first and arranged for temporary stretcher transportation on flight CA2764 the same day, successfully bringing the child to Chengdu for treatment.

5. Employee Development

SDG 3: GOOD HEALTH ANG WELL-BEING

SDG 5: GENDER EQUALITY

SDG 8: DECENT WORK AND ECONOMIC GROWTH

SDG 10: REDUCED INEQUALITIES

The 14th Five-Year Plan for the Human Resources Scope

Strengthen organizational management, optimize the Company's management system and organizational structure

Build a contingent of high-quality employees and strengthen the talent development matching the Company's strategic development

Speed up the transformation of operating mechanisms and enhance the internal motivation of the team

Improve the efficiency of human resource allocation systematically and promote high-quality development

Air China is firmly rooted in a people-oriented philosophy, placing the rights and interests of its employees at the forefront. The company is dedicated to safeguarding the health and well-being of its workforce, creating a supportive and inclusive environment. Through the continuous development of talent training systems and strategic planning, Air China actively supports employees in their career development, fostering a culture of growth and collaboration. This approach ensures mutual progress, where both employees and the company advance together, achieving shared success.

5.1 Employment and Employees' Rights and Interests

Air China strictly complies with the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, the Employment Promotion Law of the People's Republic of China, the Law of the People's Republic of China on the Protection of Rights and Interests of Women, and other national laws and regulations, based on which it is committed to building a fair, compliant, and equal working environment. We take an explicit stand against any form of forced labor or child labor and resolutely resist workplace discrimination against employees due to race, nationality, gender, or other factors. We resist workplace harassment and bullying and ensure that the legitimate rights and interests of every employee are fully protected and respected. During the Reporting Period, Air China had no violations of child labor, forced labor, or discrimination.

5.1.1 Employment Management

Air China thoroughly explores, recruits, and applies human resources. It carries out recruitment work by taking multiple measures simultaneously, utilizing various recruitment channels such as campus recruitment, market-oriented talent recruitment, general social recruitment, employment probation, and internships. In 2024, the Company continued to improve its market-oriented employment mechanism featuring the flexibility of entry and exit, breaking down traditional barriers to talent mobility, and continuously optimizing its talent structure.

Air China strives to establish long-term, harmonious, and stable labor relations with its employees, fully respecting the rights of all employees to freely associate and engage in collective bargaining. It has completed the drafting, negotiation, and signing of the new Collective Contract, Labor Safety and Hygiene Special Collective Contract, and Special Collective Contract for the Protection of Female Employees' Rights and Interests, to enhance the Company's law-based labor employment.

We have developed the Employee Code of Conduct, which establishes well-defined ethical requirements for employee behavior. Any violation will be dealt with in accordance with applicable national laws and regulations, as well as relevant internal regulations such as the Punishment Regulations for Labor Discipline Violation.

Ÿ In 2024, Air China had 104,909 employees

Ÿ The labor contract signing rate reached 100%

Ÿ Percentage of employees covered by collective bargaining agreements was 100%

Employees of Air China in 2024

Type		Number of Employees	Proportion
Number of employees by employment type	Contracted	98,407	93.80%
	Dispatched	6,121	5.83%
	Others	381	0.37%
Number of employees by gender	Male	64,464	61.45%
Number of employees by gender	Female	40,445	38.55%
Number of employees by age	≤ 35	58,704	55.96%
	36-45	31,514	30.04%
	≥ 46	14,691	14.00%
Number of employees by region	China	102,004	97.23%
Number of employees by region	Overseas	2,905	2.77%
Number of employees by profession	Management	7,097	6.76%
	Functional staff	5,676	5.42%
	Marketing and sales	5,628	5.36%
	Operation	5,789	5.52%
	Ground handling	13,113	12.50%
	Cabin service	27,271	25.99%
	Logistics and support	6,720	6.41%
	Flight crew	13,550	12.92%
	Engineering and maintenance	17,006	16.21%
	Information technology	1,215	1.16%
	Others	1,844	1.15%
Number of employees by education	Master's degree and above	4,980	4.75%
	Undergraduate	62,803	59.86%
	Junior college	27,259	25.98%
	Technical secondary school and below	9,867	9.41%

Type		Turnover Rate
Overall employee turnover of Air China		2.95%
Employee turnover by employment type	Contracted	2.52%
	Dispatched	0.38%
	Others	0.05%
Employee turnover by gender	Male	1.56%
Employee turnover by gender	Female	1.39%
Employee turnover by region	China	2.82%
Employee turnover by region	Overseas	0.13%
Employee turnover by age	≤ 35	1.96%
	36-45	0.73%
	≥ 46	0.26%

5.1.2 Democratic Management

Air China actively implements democratic management and upholds employees' right to be informed, to participate, to be heard, and to oversee. The Company has established a system of democratic management whose basic form is Workers' Congresses and continuously improves the management system based on the "1+M+N" system of Workers' Congresses. In 2024, Air China held three Workers' Congresses. During the Workers' Congresses, the Company's work report, the eighth Collective Agreement, the fourth Special Collective Contract for the Protection of Female Employees' Rights and Interests, and the fourth Labor Safety and Hygiene Special Collective Contract were reviewed and approved; the Special Working Hour System Management Measures of China National Aviation Holding Corporation Limited and Air China Limited was reviewed and some suggestions were proposed; proposals were submitted by employee representatives, all of which were all properly resolved during the Reporting Period.

In 2024, 17 proposals were submitted by employee representatives during the Workers' Congresses and the response rate was 100%.

5.2 Employee Training and Development

Talent resources provide powerful support for Air China to promote sustainable development. We have established a comprehensive training management framework and institutional system, providing a variety of training programs to cater to the development needs of different employee teams. We continuously improve career development paths and encourage employees to enhance their education and professional skills, striving to achieve common development of employees and the Company.

5.2.1 Training System for Technical Employees

Air China focuses on cultivating innovative talents and is dedicated to building a comprehensive and multi-level talent ecosystem. Based on the training philosophy of strengthening the foundation, enhancing capabilities, and promoting development, we have developed internal training systems, including the Compliance Training Outline and the Training Outline on Work Style for All Employees. These systems not only cover the basic knowledge of laws, regulations, and industry norms, but also delve into multiple dimensions such as professional ethics, risk management, and emergency response, striving to build a comprehensive and multi-level training system to cater to the diverse learning needs of employees at different stages of their careers.

Training System

Based on civil aviation laws

Establish the training system for pilots, flight attendants, flight security guards, and flight dispatchers

Based on Air China's production needs

Establish the training system for air transport personnel, expatriate employees, and business personnel

Based on the qualification requirements of civil aviation transportation

Establish the training system for dangerous goods transportation and aviation security

In 2024, Air China invested approximately RMB 224 million in training to maintain specific qualifications for the Company's employees.

Training Management Capacity Building

Improving the Construction of Training Systems in Key Areas

Ø Revised the Training Department's Aviation Safety Management Manual.

Ø The CCAR-142 Flight Training Center completed the CRM supplementary operation qualification certification and established a branch office in Chongqing.

Ø A dangerous goods training institution has preliminarily completed the CBTA[9] reform.

Ø Achieved C909 autonomous training.

Unified Training Management Standards

Ø Revised the training standards and regulations eight times. The revised training standards and regulations include those of the CCAR-142 Flight Training Center and the crew training institution, as well as the training outlines for transport service staff of airlines.

Ø Revised the Minimum Equipment Specification List for Simulators

Ø Issued teaching qualifications for 3,986 instructors, developed and produced 339 face-to-face online courses, and added 2,185 courses to the online learning platform.

Strengthening the Professional Teaching Staff

Ø We have appointed 36 part-time cabin instructors and 44 part-time ground service instructors and also promoted nine part-time instructors.

Ø We have selected and appointed four flight simulator instructors.

Ø We implemented the assessment of the full-time ground service instructors in terms of teaching hours and quality, and the incentive work related to them in 2024.

Leadership Training

In 2024, Air China made great efforts to cultivate a high-quality management team who are honest and upright, loyal to the Party, innovative, proficient in managing an enterprise, and committed to promoting the growth of the Company. Taking the in-depth study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the main theme, it has actively cooperated with the training programs organized by superior units, vigorously implemented various off-the-job training programs, and regularly launched new online courses on the Leadership Branch of the Air China Network Academy, to enhance the political capabilities of the management at all levels and improve their capabilities to fulfill their obligations, thus comprehensively strengthening their competence in promoting the high-quality development of the Company.

International Training and Exchanges

l 2024 Exchange and Training in Rolls-Royce UK under the International Training Program for Senior Management

l 2024 Exchange with Airbus in France under the International Training Program for Middle and Senior Management in Civil Aviation

l An Exchange and Practice Program of Air Macau in 2024

l 2024 Rolls-Royce Singapore International Training Program for Young Cadres

l 2024 Training Courses for Young Cadres

l Exchange with Commercial Aircraft Corporation of China

l CNAHC 2024 Training Class for New Senior Management to Enhance Their Capabilities to Perform Their Duties

l CNAHC 2024 Training Class for New Middle Management to Enhance Their Capabilities to Perform Their Duties

Online Training of Leadership Branch

The Leadership Branch of the Air China Network Academy newly launched courses in five areas, including policy interpretation, new quality productivity, work safety, artificial intelligence, and high-quality development, with 26 courses in total launched throughout the year.

Development of Teams

l Continuously carry out the "Five Small" innovation activities, namely small inventions, small creations, small innovations, small designs, and small suggestions.

l Selected demonstration teams and excellent team leaders for the year 2024, and actively established benchmark teams, enabling them to play an exemplary and leading role.

l Organized employees to participate in the excellent achievements collection and exhibition in the safety culture construction among civil aviation teams in the new era, recommended more than 100 outstanding works and participated in the offline art and cultural show.

l Held the 11th Excellent Team Leader Training Course, with 114 team leaders and innovative talents participating in the training.

Continuing Education of Employees

Program of High Education for Civil Aviation Employees

Air China continued to carry out the program of High Education for Civil Aviation Employees to assist Air China employees in achieving a "dual improvement" in education and professional skills. The program of High Education for Civil Aviation Employees is jointly launched by the Civil Aviation Administration of China and the Open University of China, with online teaching as its basic form, providing students with academic education and vocational skills training through a combination of online and offline teaching methods. The undergraduate and vocational education programs under High Education for Civil Aviation Employees are designed to be 2.5 years. After completing the required credits for compulsory and elective courses in relevant majors, and passing the corresponding exams and appraisals as required, students will receive nationally recognized graduation certificates and degree certificates belonging to the national education series.

Employee Training Statistics[10]

Type		Percentage of Trained Employees (%)	Average Training Hours per Employee (hours)
Trained employees by rank	Senior management	38.4	32.7
	Middle management	38.4	29.2
	Staff	76.8	44.6
Trained employees by gender	Male	74.1	41.9
Trained employees by gender	Female	77.1	46.6

5.2.2 Employee Career Development

To build a more efficient and professional talent team, Air China has implemented a meticulous classified talent management system and comprehensively reformed the mechanism of the entire process ranging from talent selection, cultivation, and management, to employment. In 2024, Air China deepened the construction of its professional qualification level system for professional and technical as well as vocational and skilled talents. It has established the rank systems in flight crew dispatching and marketing and carried out pilot projects in other fields such as cabin service, ground service, and operation dispatching to facilitate employee promotion channels and promote reasonable employee mobility. Meanwhile, a sound management mechanism for the evaluation and employment of professional talents has been established, and the Administrative Measures for the Evaluation and Employment of Professional Talents has been issued. Based on the principle of streamlining administration, delegating power, and improving efficiency, we have streamlined the evaluation and employment procedures for professional talents to improve management efficiency and ensure the fairness and effectiveness of the evaluation and employment work.

Performance Highlights:

l In 2024, the internal talent exchange platform released 124 jobs;

l 100% of employees received regular performance and career development assessments.

Vocational Skills Competition

In 2024, Air China thoroughly implemented the new version of the Administrative Measures and Incentive Mechanisms for Vocational Skills Competitions Among Employees in the Civil Aviation Industry. We have introduced innovative competition methods around key positions. We also actively participated in the "Safety and Health Knowledge Contest" and vocational skills competitions organized by CNAHC, to showcase the talents of our employees.

5.3 Occupational Health and Safety

Air China always regards safeguarding the health and safety of its employees as its top priority. We adhere to occupational health and safety management standards, commit to respecting the right of employees to enjoy healthy and safe working conditions, and actively carry out the construction of employee health and safety systems, making every effort to protect employees from health and safety hazards.

5.3.1 Engaging in Occupational Disease Prevention and Control

Air China strictly complies with laws, regulations, and work requirements such as the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, the Provisions on the Administration of Occupational Health at Workplaces, and the Notice of the General Office of the National Health Commission of the People's Republic of China on Further Strengthening Occupational Health Training for Employers to continuously improve its occupational health regulatory management system and persistently reinforce its occupational health management.

Air China conducts annual special assessments of occupational health as required. It promptly investigates and implements rectification measures for potential hazards that may cause occupational diseases, and sets up protective facilities for unavoidable occupational hazards, providing labor protection equipment for relevant positions. Meanwhile, through intelligent technology transformation, we continuously improve the working environment of employees, reducing risks of occupational diseases and safety incident risks, and forming a closed loop of occupational health management.

Air China has formulated and issued the Notice on Streamlining the Workflow of Handling Work-related Injury Insurance Business in accordance with policies such as the Regulations on Work-Related Injury Insurance, to ensure that the rights and interests of employees are fully protected.

In 2024, the Company lost a total of 17,112 working days due to work-related injuries.

5.3.2 Caring for Employees' Health

Air China has formulated the Employee Physical Examination Management System and organizes regular employee health examinations. On top of general physical examinations for aircrews and ground staff, differential and special physical examinations are also provided for aircrews and female employees. To ensure that employees have a clear understanding of the physical examination results, the Company has established employee health records and organized a team of professional doctors and healthcare experts to provide personalized one-on-one consultation services after the examination, providing targeted health guidance plans and rational suggestions. In 2024, relying on advantageous medical resources, we have built a new model of digital employee health management and successfully qualified as a pilot unit for high-quality workplace health management. Meanwhile, we continued to provide Employee Assistance Program (EAP) services to enhance the mental health of our employees.

Air China Conducted Psychological Training for Front-line Managers

2024 is the 12th year of Air China to provide the EAP services. This year, we conducted EAP psychological training for front-line managers, which significantly improved their awareness of mental health and teamwork ability by popularizing mental health knowledge and teaching stress management and communication skills. As of the end of the Reporting Period, the EAP smart psychological platform has accumulated nearly 18,711 visits from active users.

As of the end of December 2024, a total of 444 sessions of group counseling on mental health, special group counseling for new employees, special lectures on mental health, and EAP promotion activities were held. One-on-one psychological counseling cases were 2,139 pieces. Monthly on-site consultations were held 72 times. We dealt with crisis cases for 29 hours. We tracked and assisted employees at risk for 42 hours.

5.3.3 Health Promotion and Education

Based on the Employee Health Management Program, Air China regularly conducts health promotion activities to address the health issues that employees are concerned about. Its health promotion activities focus on chronic and frequently-occurring diseases, as well as seasonal diseases. With these efforts, we aim to further enhance employees' proactive health awareness.

Air China Organized Health Knowledge Promotion Activities

Taking into account the seasonal characteristics of the diseases, Air China has proactively taken action and established deep cooperative relationships with well-known grade A tertiary hospitals. We regularly organize professional expert lectures, inviting authoritative healthcare experts to provide in-depth and easy-to-understand explanations on diseases that are currently prevalent in the season, covering topics such as disease prevention, early symptom identification, and scientific treatment methods. Meanwhile, health information is also timely released through internal platforms, including the latest medical research achievements, practical suggestions for the prevention of seasonal diseases, and health management tips, aiming to help employees comprehensively improve their understanding of seasonal diseases.

5.4 Incentives and Care

Air China continuously implements employee incentive policies. We have established a diverse and rich employee salary, performance, and welfare system, and are committed to providing employees with comprehensive and competitive salary and welfare systems. We care about the needs of our employees and organize a variety of activities to create a positive atmosphere and to fully mobilize their enthusiasm and creativity.

5.4.1 Salary and Performance

Following the concept of "paying for post value, personal ability, and performance results", Air China has built a job system and salary system based on the job value and the performance-based component of employees. In 2024, Air China stepped up its efforts to improve its differentiated assessment and distribution mechanism and continued to strengthen the assessment and distribution orientation that salary is determined by performance and contribution. It gives preference to front-line posts that are arduous, dirty, risky, and strenuous, scientific and technological talents, and high-performing key employees in the distribution of salaries, and links the salary and performance of employees, enterprise and unit leaders with such assessment indicators as energy conservation and environmental protection, employees' satisfaction with welfare and security provisions, particularly significant complaints and serious service incidents, and customer satisfaction. We aim to motivate managers and employees to further deepen their understanding of ESG management philosophy and improve their ESG practice.

5.4.2 Employee Welfare and Care

Air China strictly follows the legal and regulatory requirements to fund the "five social insurances and one housing fund" for all employees. On top of that, we also provide employees with non-compensation benefits including pension and retirement, supplementary commercial insurance, enterprise annuities, etc. In 2024, the Company's social insurance coverage rate for employees is 100%, and the enterprise annuity coverage rate is 100%. Our employees are entitled to statutory paid annual leave, sick leave, marriage leave, maternity leave, parental leave, family visit leave, etc. We are deeply concerned about the voices and needs of employees in need, and actively carry out various employee assistance activities, to bring warmth and a sense of belonging to employees.

Ÿ In 2024, we provided a mutual aid fund of RMB 1.56 million to 78 employees with major illnesses.

Ÿ We provided a mutual aid fund of RMB 1.04 million to 52 female employees with major illnesses.

Ÿ A new round of mutual aid fund raising for major illnesses of female employees was launched, with 22,141 female employees participating and a total of RMB 2.215 million raised.

Sending New Year Greetings to Frontline Employees

During the Spring Festival in 2024, the Chairman Ma Chongxian, and the President Wang Mingyuan with the delegation visited frontline employees of different units, to express gratitude for their dedication to their work during the holiday season, and sent holiday greetings and sincere wishes to everyone.

Hot Summer Employee Care Activity

In 2024, Air China continued to carry out the heat-relieving care activity. The Company's management personally visited the frontline workers to see into their work needs and presented heatstroke prevention supplies such as fruits and drinks, conveying greetings and care to the frontline workers who were still at work in hot weather.

5.4.3 Employee Activities

Air China deeply cares about the needs of its employees. It actively carries out diversified cultural and sports activities, as well as selection and commendation activities for outstanding individuals or units, to enhance employees' sense of belonging and honor.

Female Employee Activities

l We carried out the Law Publicity Month activity among female employees. We also organized a special online lecture to study the keynote of the 13th National Women's Congress, laying a solid theoretical foundation for further carrying out the work related to female employees.

l We organized the employees to participate in the exchange activity to promote the Civil Aviation Female Employee Innovation Studio. The Air China Trade Union and Ameco Pingli Studio, as outstanding representatives, delivered speeches, showcasing the innovation achievements of the Company's female employees.

l The organization recommended Huang He from the Flight Crew Department to be a member of the Eighth Female Employees' Committee of the All-China Federation of Trade Unions to participate in relevant meetings, to promote high-quality political participation of female employees.

l We organized the employees to participate in the "Home is a Safe Harbor" essay contest for female employees launched by the Civil Aviation Trade Union, deepening the construction of professional ethics, family virtues, and personal morality, fostering family traditions, and boosting safety through the promotion of harmony.

Employee Sports Games

In May 2024, we participated in the third Employee Sports Games themed "Fight at the Sports Field and Build the First-class CNAHC" organized by CNAHC. Athletes of Air China actively participated in the sports games in high spirits, demonstrating the sense of collective honor, team cohesion, and fighting spirit of Air China employees.

Civil Aviation Sports Games

In May 2024, Air China sent a representative team consisting of 97 athletes and 14 national flag guards to participate in the Third National Civil Aviation Employees Track and Field Games themed "I'll contribute to the prosperity and rejuvenation of our nation" organized by the Civil Aviation Trade Union. Air China achieved first place in the overall team performance. This sports meeting has further consolidated the team cohesion, and enhanced employees' sense of collective honor and belonging, injecting new vitality and impetus to the high-quality development of the Company.

Staff Fitness Tour

In September 2024, CNAHC held its Seventh Staff Fitness Tour with the theme of "Taking a Fitness Tour with CNAHC to Salute Our Motherland". More than 900 employees from Air China and other units participated in the fitness tour. This activity not only created a fitness atmosphere but also stimulated the patriotic enthusiasm and sense of collective honor of the employees. It fully demonstrated the employees' spirit of being proactive and pursuing excellence.

Staff Reading Activity Organized by the Civil Aviation Trade Union

Air China actively participated in the staff reading activity organized by the Civil Aviation Trade Union. The Xizi team reading club of the Zhejiang Branch was rated as an excellent civil aviation staff reading organization. The staff reading activity of the Shanghai Branch was rated as a demonstration activity for civil aviation reading. This activity promoted the construction of the Company's corporate culture and effectively promoted the establishment of a new reading trend among all employees.

5.4.4 Commendation of Excellent Individuals and Units

Selecting model employees and teams	In 2024, the Zhejiang Branch of Air China was awarded the National May 1 Labor Award; He Haiying from the Ground Service Department was awarded the National May 1 Labor Medal.
	Wang Feng from the Southwest Branch of Air China, Liang Peng from the Operation Control Center, Yuan Wensheng from the Ground Service Department, Zhang Qunxi from the Cabin Service Department, Deng Yupeng from Ameco, Gaofei from Shenzhen Airlines, and Wang Hongzhan from Shandong Airlines won the title of Model Worker of Central Enterprises of China.
	Gao Jianming from Ameco was awarded the Capital Labor Medal; the Qidian Team of Flight Operations Training Center of Air China's Training & Development Department was awarded the title of 2024 Beijing Worker Pioneer.
Selection and cultivation of Craftsmen	Duan Huangke from the Operation Control Center of Air China has been selected by the All-China Federation of Trade Unions as a 2024 National Craftsman Cultivation Subject and participated in the National Craftsman Training.
Selection and cultivation of Craftsmen	Ni Zejun from Ameco was awarded the title of First Civil Aviation Craftsmen by the Civil Aviation Administration of China.

The First Public Innovation Exchange Conference

On the eve of International Labor Day, CNAHC held the First Public Innovation Exchange Conference and Commendation Conference and awarded plaques to the innovation studios named after the sixth batch of National Civil Aviation Model Workers and Craftsmen. Ten representatives of Air China and other units from Model Workers and Craftsmen Innovation Studios, "Five Small" innovation projects, and primary-level trade unions, gathered together to conduct experience sharing around actively promoting mass participation in innovation.

5.4.5 Employee Service and Communication

Ÿ We have built an AI employee service Q&A knowledge base, with 142 sets of question-and-answer pairs already incorporated into it.

Ÿ The "Online Ticket Transfer" applet has been operating within the entire scope of Air China and has achieved hassle-free services for employees to handle the procedures for onboarding, transfer, resignation, and retirement.

Ÿ We upgraded the WeChat official account of the Employee Service Center and established an integrated platform for the Employee Service Center, including the "regional management" of Beijing, Chengdu, Wuhan, Shanghai, and Hohhot. This platform covers 61 sub-processes in three modules, namely "Online Employee Service" administrative services, life services, and employee culture, providing employees with diversified services that are more targeted, efficient, and comprehensive.

In 2024, employee service satisfaction was 98.09 points, representing a year-on-year increase of 2.31 points.

6 Social Contribution

SDG 1: NO POVERTY

SDG 3: GOOD HEALTH ANG WELL-BEING

SDG 11: SUSTAINABLE CITIES AND COMMUNITIES

Air China always takes it as its inescapable duty to fulfill corporate social responsibility and empower the development of community public welfare undertakings. We also actively respond to the state's call for rural revitalization, assist in the economic development of underdeveloped areas, and convey the warmth of Air China to society.

6.1 Rural Revitalization

In 2024, Air China, guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, has deeply implemented the spirit of the 20th National Congress of the Communist Party of China, and the second and third plenary sessions of the 20th Central Committee of the Communist Party of China, and taken effective measures to fulfill the political responsibility of paired-up assistance. The Company has given full play to the advantages of the "aviation +" assistance model and has taken solid steps to consolidate and expand the achievements in poverty alleviation in Zhaoping County, Guangxi Zhuang Autonomous Region, and Sonid Right Banner, Inner Mongolia Autonomous Region, helping these areas reach new heights in this regard and achieving tangible results in the comprehensive rural revitalization.

Ø During the year, Air China invested a total of RMB 44.02 million;

Ø The number of invested assistance projects was 25;

Ø A total of over RMB 54 million was spent on the purchase of products from the paired-up assistance areas;

Ø Helping the paired-up assistance areas sell agricultural products, totaling RMB 42.82 million;

Ø A total of 20 young employees from Air China, Shenzhen Airlines, and Shandong Airlines were selected for long-term or short-term volunteer teaching in the paired-up assistance areas;

Ø Completing 2,847 class hours of volunteer teaching throughout the year;

Ø Trained community-level cadres, rural revitalization leaders, and technicians for 10,070 person-times.

Air China gradually established an "Aviation+" assistance model that meets the requirements of the central government and local needs and also gives full play to the state-owned civil aviation enterprise. Following the victory in poverty alleviation, Air China has continued to focus on the revitalization of "industry, talent, ecology, culture, and organization" by formulating a "5+N" key project plan for rural revitalization. The assistance work was integrated throughout the industry chain by further expanding in-flight meal procurement and research, promoting mileage points exchanged for paired-up assistance products, and increasing publicity and promotion through aviation media and various expos.

6.1.1 Consolidating the Achievements of Poverty Alleviation

Ÿ We have invested assistance funds in rural basic education for about 7.15 million. We constructed laboratories in line with the standards of the new college entrance examination in Zhaoping, conducted teacher training, and launched the CNAHC "New Great Wall High School Self-empowerment Class" project. We also established the Air China Blue Sky Education Development Fund in the Sonid Right Banner and distributed "Love Schoolbags for Primary School Students" and "Science and Technology Innovation Packages" to all junior primary school students in the banner.

Ÿ We invested in terms of medical security for about 1.32 million. We provided healthcare packages for herdsmen and carried out the Air China Blue Sky Aid project to assist families in need. We also donated epidemic prevention supplies for about 1.86 million to the paired-up assistance areas.

Ÿ To effectively address the practical problems related to the low level of elderly-oriented services in the paired-up assistance areas, Air China implemented the "Meal Assistance" service project in Sonid Right Banner this year. We have invested RMB 270,000 in the project to improve the catering conditions of left-behind elderly people in the local areas through the renovation of catering facilities, nutritional meal matching, and delivery services.

Ÿ Support funds for rural basic education RMB 7.15 million, Support funds for medical protection RMB 1.33 million, Anti-epidemic supplies donated to supported regions RMB 1.86 million.

6.1.2 Comprehensively Promoting Rural Revitalization

6.1.2.1 Industrial Revitalization

Industrial revitalization is the internal driving force for the sustainable development of agriculture and rural areas, as well as the fundamental and core element for achieving comprehensive rural revitalization. Air China contributes to rural industrial revitalization by investing assistance funds, implementing industrial projects, and providing technical support. In 2024, Air China invested RMB 24.20 million in industrial assistance funds.

In 2024, Air China has implemented multiple key industrial support projects in Zhaoping County, including the upgrading of the Tea Technology Backyard, planning of characteristic industries, construction of JDL Cloud warehouses and supply and marketing systems, as well as promoting characteristic industries through live streaming e-commerce. We aim to address the bottleneck problems faced by the local characteristic tea industry, such as the shortage of deep processing chains, limited potential for resource appreciation, and insufficient brand awareness, and promote sustained production increase and income increase of tea farmers and enterprises in poverty-alleviated areas.

In Sonid Right Banner, Air China has assisted in building a smart animal husbandry platform, expediting the digitalization and informatization of pastoral areas, and providing strong support for the modernization transformation of local traditional animal husbandry.

Air China organizes, guides, and mobilizes employees and Phoenix Miles members to actively participate in the consumption-driven assistance, and help them sell products. In recent years, the Company has purchased agricultural products totaling RMB 370 million from the paired-up assistance areas. In 2024, the consumption-driven assistance reached over RMB 54 million. Among it, during the "Consumption-driven Assistance of Central SOEs for the Spring Festival" organized by the State-owned Assets Supervision and Administration Commission of the State Council, the employees of Air China purchased agricultural products totaling RMB 22.49 million.

6.1.2.2 Talent Revitalization

Air China adheres to the philosophy of "Support of Ambition and Intelligence" and has been dedicated to the "CNAHC Blue Sky Classroom" volunteer assistance project for seven consecutive years. We have established the selection and training mechanism for teaching volunteers and perfected the systematic construction of volunteer teaching in terms of both theory and practice. In 2024, a total of 20 teaching volunteers from Air China, Shenzhen Airlines, and Shandong Airlines taught a total of 2,847 class hours in paired-up assistance areas.

"CNAHC Blue Sky Classroom" volunteer assistance project on the grassland

The "CNAHC Blue Sky Classroom" volunteer assistance project on the grassland launched by Inner Mongolia Airlines won the gold medal in the seventh China Youth Volunteer Service Project Competition. The project was first launched in 2017 when Inner Mongolia Airlines utilized its resource advantages to tailor diversified practical content for local youth. It held summer camp activities, including aviation science education, going on visiting tours, and on-site "immersive" experiences. The children are led to visit many places, from the ground to the air, around the aircraft, and in the cabin, from the apron to the hangar, during which they can have "zero-distance" contact with domestic civil aircraft, painted planes, and special vehicles. We aim to comprehensively enhance young people's understanding of the aviation industry and aviation services, and help young people in the paired-up assistance areas broaden their horizons and expand their knowledge. As of 2024, the summer camp activities have been conducted for five sessions, covering 144 local students.

Air China Carries out Comprehensive Training Programs

Air China, in collaboration with the Ministry of Education of the People's Republic of China, China Foundation for Rural Development, and Beijing Normal University, has invested RMB 1.8 million throughout the year to launch a teacher training program in Zhaoping County, aiming to improve the basic education there. An investment of RMB 3.2 million was made to carry out a comprehensive training project that covers community-level management personnel, leaders in rural revitalization, and technical personnel, cultivating a talent team that can be retained in the paired-up assistance areas and stimulating the inner development motivation of poverty-alleviated people.

6.1.2.3 Cultural Revitalization

In 2024, Air China invested an assistance fund of RMB 3.17 million to carry out the culture co-construction project with Ulanmuchi of Sonid Right Banner, to support Ulanmuchi's literary and artistic creations that are people-centered and focused on building a strong sense of the Chinese nation's unity, and keeping in mind General Secretary Xi Jinping's reply that "Always be a 'red literary light cavalry' on the grassland".

Air China carries out the activity themed "Carry Forward the Valuable Treasure of Intangible Cultural Heritage and Jointly Boost Cultural Revitalization"

Air China carried out the activity themed "Carry Forward the Valuable Treasure of Intangible Cultural Heritage and Jointly Boost Cultural Revitalization". We invited Ulanmuchi of Sonid Right Banner and some intangible cultural heritage inheritors to take the CA1940 flight themed "Phoenix Dancing in the Blue Sky Promotes Rural Revitalization" and visit the ecological tea garden in Zhaoping County to showcase traditional intangible cultural heritage skills such as playing the horsehead fiddle, Urtiin duu, and Khoomei. Meanwhile, the performance told the story of Air China and the people of the two places who completed the poverty alleviation campaigns and continued to strive for rural revitalization, strengthening the communication and integration between the Sonid Right Banner and Zhaoping County, the two ethnic minority areas.

6.1.2.4 Ecological Revitalization

Ecological revitalization is an essential part of the five major revitalizations in rural areas and is an important component of implementing the five-sphere integrated plan in rural areas and advancing the construction of ecological civilization. In 2024, Air China invested more than RMB 3 million to implement the Sonid Right Banner pastoral area wind-solar complementary upgrading and transformation project, and strengthen the management and maintenance of infrastructure construction project in Jiangkou Village, Zhaoping County, to assist the paired-up assistance areas in building an ecologically habitable home.

6.1.2.5 Organization Revitalization

Organization revitalization, as one of the goals that rural revitalization aims to achieve, is essential to rural revitalization as a whole. Air China has further strengthened the Party's leadership in rural revitalization work. In 2024, Air China continued to select and assign three outstanding cadres to the paired-up assistance areas, serving as the Deputy Banner Head of Sonid Right Banner, the Deputy County Mayor of Zhaoping County, and the First Secretary of Jiangkou Village in Zhaoping County, respectively. Additionally, nine outstanding league members had been dispatched to participate in the rural revitalization work of the paired-up assistance areas. With these efforts, we aim to assist in the construction of primary-level Party organizations in the paired-up assistance areas and fulfill our political responsibility of providing targeted assistance to those areas.

Holding Symposia for Party Building Exchanges

The Party Branch of Air China's Golden Phoenix Group, which has been granted the title "Role Model of the Times", together with the Party Branch of Ulanmuchi in Sonid Right Banner, Inner Mongolia, and the Party Branch of Jiangkou Village in Zhaoping County, Guangxi, carried out in-depth organization co-construction and Party building exchange activity around the theme of "Leading Rural Revitalization with Organization Revitalization". We further deepened the "Seven Grasps" project for the quality and efficiency improvement of primary-level Party building, and enhanced the exemplary and leading role of the demonstration Party branches with strong political functions, teams, members, and roles, laying a more solid foundation for steadfastly advancing all aspects of the rural revitalization strategy.

6.1.3 Neighbourhood Assistance

The branches of Air China carried out neighborhood assistance work in line with local conditions.

Ÿ In October 2024, Dai Yan, the First Secretary of the rural revitalization work team dispatched by Air China Chongqing Branch, visited the poverty-alleviated residents in Xianyun Village, Ganning Town, Wanzhou District, Chongqing.

Ÿ In August 2024, Ren Quanle, a cadre for rural revitalization dispatched by Inner Mongolia Airlines, improved the village's road facilities in Ergenhe Village, Oroqen Autonomous Banner, Inner Mongolia Autonomous Region.

6.2 The Belt and Road Initiative and Industry-wide Co-building

Closely following the steps of China's "Belt and Road Initiative", Air China accelerates the building of air bridges for the countries along the routes of the "Belt and Road Initiative", and boosts connectivity and economic and trade cooperation between them, contributing to the goal of improving people-to-people connectivity and fully demonstrating Air China's sense of responsibility as a state-owned enterprise in promoting development via cooperation and assistance.

Route Network Layout[11]

Air China steadily promotes the opening and resumption of international flights. Seven new international routes were opened and seven routes were resumed throughout the year. The international ASK investment increased by 93.6% year-on-year, returning to 87.3% in 2019. The route network layout in line with the "Belt and Road Initiative" has been constantly improved, reaching 29 countries and implementing 65 routes. The number of flights has exceeded that of 2019 and is higher than the overall international recovery level.

6.2.1 Jointly Promoting Industry Development

Air China actively participates in industry co-construction and promotes the coordinated development of the aviation industry through resource sharing and technology exchange. It is committed to building an industry ecosystem featuring cooperation and mutual benefits.

l To implement a modern comprehensive transportation system and civil aviation development plan, Air China has further strengthened in-depth cooperation with China Railway and promoted the special pilot work of "one ticket system" for intermodal passenger transport to meet people's desire for better transportation. As of 2024, the air-rail intermodal transportation product system of Air China has covered 73 domestic transfer cities, 120 transfer railway stations, and 525 accessible railway stations, effectively connecting 1,024 railway lines.

l Efficiently promote the implementation of various tasks related to electronic itineraries. In May 2024, we achieved the function of issuing electronic itineraries through all channels, leading the industry in annual issuance volume. The electronic itinerary is sent in electronic format to a designated email address for download at any time, effectively avoiding the loss of the itinerary and promoting low-carbon and green travel.

6.2.2 Participating in national or industry key programs

l Tap the potential for friendly cooperation among peers and innovate the forms of cooperation.

Ø Realize the mutual sale of flight tickets between Shenzhen Airlines and Shandong Airlines, and support one-stop processing of rescheduling, ticket refund, seat selection, check-in, and other services, further deepening collaborative efficiency.

Ø Realize the use of Air China tickets and certificates to sell flight tickets for China Eastern Airlines and China Southern Airlines, enhancing the ticket purchasing experience for passengers. As of the end of 2024, a total of 172,000 tickets were sold for Shenzhen Airlines, Shandong Airlines, China Eastern Airlines, and China Southern Airlines.

l Improve the service quality throughout the entire baggage handling process.

Ø Establish an on-site payment model for excess baggage, and activate the function of handling domestic excess baggage on-site at Chengdu Tianfu International Airport, Shanghai Hongqiao International Airport, and Shanghai Pudong International Airport. Passengers can scan the QR code to open the service processing page to complete payment, ticketing, and order inquiries.

Ø Activate the function of declaring missing baggage online and simplify passenger information entry, to improve the efficiency of ground service.

6.2.3 External Exchange and Cooperation

l We strive to expand our presence in key areas of the Star Alliance, actively participate in the formulation of the Star Alliance's core value standards, and strengthen our voice in the alliance. We have obtained a seat in the Alliance Management Committee of Star Alliance Management, as well as seats in the strategic groups of standing committees in four key business areas, including the Customer Experience Standing Committee, Frequent Traveler Standing Committee, Information Technology Standing Committee, and Membership Relationship Management Standing Committee.

l We have expanded bilateral cooperation with Turkish Airlines and Egypt Airlines, and established new bilateral partnership cooperation with Mongolia Airlines and Riyadh Air of Saudi Arabia, actively serving the national strategy and high-level opening up. We have established interline cooperation relationships with multiple airlines under Lufthansa. We have opened an interline check-in service with Emirates and are collaborating to optimize the quality of interline services. The number of interline cooperation partners of Air China has reached 145.

l We are deeply involved in key projects of Star Alliance such as interline payment and seat selection, and promote digitalization to improve passenger experience.

l On April 20, 2024, we officially launched the live-streaming sales on Douyin. Users can follow us through the "Air China Flagship Store" account on Douyin. As of the end of 2024, a total of 95 hours of live streaming have attracted 3.41 million viewers, and the transaction amount totaled RMB 137 million.

l We continued to expand our cooperation with Huawei on the HarmonyOS ecosystem. The cooperation between Air China and Huawei in the field of mobile application construction started in 2016. Currently, the two sides have achieved digital technology cooperation in multiple aviation travel scenarios, including application stores, electronic boarding passes, eID authentication, HarmonyOS meta-services, and live windows. Meanwhile, as one of the first partners to adapt to the HarmonyOS ecosystem and Vice Chairman of the Traffic Special Committee of the Open Harmony Ecology Committee, Air China has further integrated aviation travel scenarios with Huawei's HarmonyOS system produced in China.

l Elected as the Chairman of the IATA China Airline Committee (CAC); Successfully ran to become a member of the IATA Industry Financial Advisory Council, and submitted a proposal to add RMB as the clearing currency in the IATA Clearing House.

l Giving full play to the leading role of the APJC (Agency Programme Joint Council) for China BSP in the industry, Air China, together with China Eastern Airlines and China Southern Airlines, jointly proposed the proposal of Comprehensively Strengthen the RHC Monitoring System to the IATA. As a member of the IATA China Airline Committee (CAC), we have put forward multiple industry risk prevention and control proposals to ensure the financial security of aviation companies and set a benchmark for risk control in the industry.

6.2.4 Participation in Major Industry Events

l Air China Attends the Special Exhibition Commemorating the 75th Anniversary of the "Uprising of the Two Airlines"

On November 6, 2024, "A Significant Patriotic Action - Special Exhibition Commemorating the 75th Anniversary of the 'Uprising of the Two Airlines'" (the Uprising) kicked off at the Civil Aviation Museum, revisiting the glorious history of the Uprising, paying deep tribute to the significant contributions made by the uprising personnel to the development of civil aviation, and facilitating the promotion and inheritance of the spirit of the Uprising. Ma Chongxian, the Chairman and Secretary of the Party Committee of Air China, attended the event. Representatives of model workers from Air China shared their experiences in inheriting the spirit of the Uprising. After the event, representatives from Air China participated in a seminar commemorating the 75th anniversary, jointly exploring the rich connotations of the spirit of the Uprising, its values to the contemporary world, and the paths to promote and inherit the spirit.

l Air China Participates in the 15th China International Aviation and Aerospace Exhibition.

From November 12 to 17, 2024, Air China attended the 15th China International Aviation and Aerospace Exhibition. Air China's exhibition booth, themed "New Journey, New Expectations - Catching a Glimpse of a More Beautiful China · Zhuhai", focused on safety development, route operation, fleet construction, product services, and other aspects. Air China specially set up an Air China C919 exhibition area and an area for scientific and technological innovation achievements. It also brought the series of products to celebrate the 30th anniversary of the "Phoenix Miles" Frequent Flyer Program, comprehensively showcasing Air China's brand image and comprehensive strength in accelerating the process of building a world-class enterprise.

l Air China Participates in the 13th Macau Business Aviation Exhibition

On November 7, 2024, an Air China C919 aircraft carrying the national flag of China arrived in Macau to be invited to participate in the 13th Macau Business Aviation Exhibition. This is the first visit of the domestically produced C919 large aircraft to Macau, which presented a chance for the people of Macau to experience the charm of domestically produced large aircraft up close. It is also a special gift presented by Air China to Macau on the 25th anniversary of its return to the motherland.

Air China Signed a First User Framework Agreement with COMAC for C929 Passenger Aircraft

On November 12, 2024, a user framework agreement for the wide-body C929 passenger aircraft was signed between COMAC and Air China, at the 15th China International Aviation and Aerospace Exhibition, which made Air China the first intended user of this aircraft type. The introduction and operation of domestically produced large aircraft by Air China is a vivid practice for Air China to continue fulfilling its mission as the flag carrier and demonstrate its commitment to shouldering the responsibility in the new era. It is also an important part of Air China's efforts to build a world-class enterprise and promote high-quality development.

6.3 Supporting the Community

6.3.1 Major Transport Tasks

With our rich experience in providing air transport service, Air China has demonstrated its commitment to shouldering responsibilities by undertaking major air transport missions.

Providing air transportation support for the Paris Olympic and Paralympic Games

From June to September 2024, Air China successfully provided air transportation support for the Chinese delegations at the Paris Olympic and Paralympic Games. During this period, all departments of Air China worked closely together to deliver high-quality services and professional support to ensure a smooth journey for the Chinese athletes.

Organizing a charter flight for mainland Olympic athletes visiting Hong Kong and Macao

In August 2024, a delegation of 75 mainland Chinese athletes participating in the Paris Olympic Games traveled to Hong Kong and Macao on Air China charter flight CA561. To express congratulations and respect to the Olympic athletes, Air China meticulously decorated the aircraft cabin and the captain extended a warm welcome and heartfelt congratulations to the athletes via in-flight announcements. Through careful organization, efficient coordination, and seamless integration of ground and air operations, Air China delivered high-quality transportation services via charter flight CA561.

Conducting the evacuation mission from Lebanon

On October 1, 2024, Air China arranged for an Airbus A330-200 passenger aircraft to fly to Beirut Air Base in Lebanon for an evacuation mission. At around 5:00 AM Beijing time on October 2, charter flight CA061 safely arrived at Beijing Capital International Airport, bringing back 146 Chinese citizens and five foreign family members.

Providing support for the Summit of the Forum on China-Africa Cooperation

The 2024 Summit of the Forum on China-Africa Cooperation was held in Beijing from September 4 to 6. Air China made meticulous arrangements and coordinated efficiently to provide high-quality transportation services for the Beijing Summit of the Forum on China-Africa Cooperation with 44 flights, 725 passenger trips, and 939 pieces of luggage.

Transporting earthquake relief supplies to Shigatse

On January 7, 2025, a 6.8-magnitude earthquake struck Dingri County in Shigatse, Tibet. Immediately after the disaster, Air China activated its emergency response mechanism, rapidly adjusted flight schedules, and made every effort to support earthquake relief transportation. On the same day, Air China was the first airline to dispatch a specialized relief flight to the affected area and transported 58 government officials from the Tibet Autonomous Region to conduct relief work. From January 7 to 12, Air China operated a total of six special relief flights and transported 158 personnel and 342 pieces of relief supplies weighing 3,834 kilograms.

Organizing a flight event themed "Cheering for China at High Altitude"

In July 2024, Air China organized a special flight event themed "Cheering for China at High Altitude" on flight CA1815 from Beijing to Xiamen. The event provided passengers with a unique live broadcast experience of the Olympic Games. At an altitude of over ten thousand meters, Air China supported the Chinese Olympic athletes in a distinctive and meaningful way and expressed its love for the nation.

Providing flight service support for the China International Import Expo

In November 2024, Air China successfully completed the flight support tasks for the 7th China International Import Expo. The Shanghai Branch of Air China meticulously developed a total of 27 support measures focused on safety and operational work, while also strengthening regional coordination and cooperation to provide effective aviation support for the event.

Providing support for the World Internet Conference

In November 2024, Air China successfully provided transportation support for the 2024 World Internet Conference. Upholding the principle of "unified leadership, respective responsibilities, and prioritized safety", the Zhejiang Branch of Air China meticulously organized and arranged operations to deliver safe, high-quality, and efficient flight services.

6.3.2 Bringing Warmth to Communities

By engaging in various activities such as community enhancement, supporting charitable causes, and offering volunteer services, Air China brings warmth to more people and contributes to building harmonious, caring communities.

Ensuring the safe arrival of a critically ill passenger

In August 2024, a passenger with a severe pelvic fracture urgently needed to travel from Sanya to Ji'nan for medical treatment on Shandong Airlines flight SC8858. Shandong Airlines responded promptly to the emergency. The Customer Service Center of the Commercial Committee, together with the Operations Risk Control Center, the Ground Services Department, the Sanya Terminal of the Commercial Committee, and the airports at both locations, coordinated efficiently to devise a comprehensive stretcher support plan. These efforts finally ensured the passenger's safe and smooth arrival in Ji'nan.

Ensuring smooth boarding for disabled athletes

In March 2024, a group of 28 national disabled athletes boarded a flight to Guangzhou. Despite multiple challenges such as tight boarding schedules, the aircraft parked at a remote stand, and all passengers requiring special assistance, the ground service staff of Air China responded swiftly to their needs, efficiently organized arrangements, and provided attentive services to ensure the smooth boarding of all athletes.

Setting up a children's self-service check-in zone during the summer travel peak

In August 2024, the Passenger Service Center of Air China's Ground Services Department innovatively set up a dedicated "Air China Children's Self-Service Check-in Zone" at Terminal 3 of Beijing Capital International Airport. Dedicated staff was assigned to assist young travelers with the self-service check-in process, thus effectively reducing the waiting time for families traveling with children and enhancing customer satisfaction.

Media open day of the Golden Phoenix Group awarded "Role Model of the Times"

In 2024, the Golden Phoenix Group celebrated the 10th anniversary of being awarded the "Role Model of the Times" and their 30th anniversary of establishment. Air China held a media open day event in Beijing to honor the Golden Phoenix Group. The event invited 20 media representatives from various sectors to visit Air China, where they observed a simulated pre-flight meeting, toured the cabin crew training center to watch training courses, and experienced emergency procedures such as simulated turbulence and evacuation drills in a full-motion simulator. The aim of the activities is to vividly showcase the spiritual legacy and brand image of the Golden Phoenix Group and Air China cabin crew's core values of safety first, passenger foremost, and professional dedication.

6.3.3 Volunteer Activities

Adhering to the volunteer spirit of "dedication, friendship, mutual assistance, and progress", Air China encourages all employees to actively engage in volunteer services and public welfare activities, in a bid to give back to society with great love and warmth.

"Youth in Full Bloom" volunteer service activity

Air China continues to advance its "Youth in Full Bloom" volunteer service initiative featuring the vibrant strength of its young volunteers. Their great passion and selfless dedication have not only earned high recognition and praise from countless passengers but also fully demonstrated the positive image of Air China's volunteer team.

Ÿ During the Spring Festival travel rush, a total of 131 volunteer service activities were organized.

Ÿ During the summer travel season, 4,353 young volunteers contributed a total of 15,194 hours of service in the terminal, benefiting 1.45 million passengers.

World Cultural Heritage enters Air China's Chongqing Lounge

On the 25th anniversary of the Dazu Rock Carvings' nomination as a UNESCO World Cultural Heritage Site, the Chongqing Branch of Air China cooperated with the Chongqing Municipal Commission of Culture and Tourism Development to launch the first phase of the historical and cultural heritage exhibition with the theme of "Yuyuehui - Join Hands with Air China to Spread the Beauty of Rock Carvings" in the first and business class lounges at the Chongqing Branch. This event enhanced the quality of lounge services, showcased the unique charm of traditional Chinese culture to passengers, and also contributed to the promotion and preservation of China's outstanding cultural heritage.

"Yuemiao" volunteer service project for children with disabilities

The "Weiguang" volunteer team from the Shanghai Branch of Air China has been continuously carrying out a series of volunteer activities at the Shanghai Yuemiao Foster Home to bring warmth and care to the children there. It has been nine years since the project was launched in 2015, and the team has devoted a total of over 1,000 hours of volunteer service. In 2024, the team carried out eight volunteer activities. Their outstanding contributions have been highly recognized by the Shanghai Disabled Persons' Federation and earned them multiple honors as an "Outstanding Group for Providing Assistance for People with Intellectual Disability".

"Continuing Love" care event for children

In June 2024, members of the Hongyan Group of the Chongqing Branch conducted the "Continuing Love" care event. Together with staff from the Chongqing Passenger Section of China Railway Chengdu Group, the team brought warm holiday blessings to the children at Chongqing Love Manor. In addition to vividly explaining knowledge about aviation and high-speed rail to the children, the team also prepared delicious in-flight meals and beverages. This activity enabled the children to experience in-cabin catering service and enjoy the joy of flying.

Organizing volunteering Teaching Activities in Batang

The Southwest Branch of Air China organized short-term volunteer teaching activities in the form of neighborhood assistance. In May and October 2024, a total of eight volunteer teachers were dispatched in two groups to Batang Middle School and Songduo Township Central Primary School in Batang County. Through courses such as aviation knowledge, fun English, arts and crafts, science, and sports, they helped plant the seeds of love and hope in the hearts of the children.

Outlook for 2025

Looking ahead to 2025, Air China will continuously implement the guiding principles of the 20th National Congress of the Communist Party of China, uphold the overarching principle of pursuing progress while ensuring stability, and fully, accurately, and comprehensively apply the new development philosophy. We will support the acceleration of a new development framework, advance sustainable development, and drive high-quality corporate growth.

In safety management, we will remain steadfast in prioritizing safety above all else, resolutely implementing a holistic approach to national security and reinforcing a safety-first mindset. We will continuously enhance safety management standards, strengthen our management systems, and maintain strict control over key safety processes. By fostering a long-term safety culture and upholding the highest safety standards, we will ensure the safety of every passenger.

In service excellence, we will further elevate service standards and quality, striving to build a distinguished service brand. Through enhanced quality control and strengthened digital capabilities, we will continue to refine hub operations and drive high-quality service development. By innovating service models and improving the travel experience, we aim to provide passengers with more comfortable and seamless journeys.

In green and low-carbon development, we will implement initiatives in accordance with the Action Plan for Carbon Peaking, promote the regular adoption of sustainable aviation fuel, and advance the Net-Zero Flight program, making solid strides toward green, circular, and low-carbon development. We will actively explore new energy aircraft and green airport construction, minimizing aviation's environmental impact and fostering industry-wide sustainability.

In efficiency and quality improvement, we will adopt a multi-pronged approach to optimize operational efficiency and revenue performance. By improving aircraft utilization, increasing revenue generation, and establishing a lean cost management system, we will exercise strict cost control and mitigate potential risks. Through refined management, we aim to achieve a balance between economic and social benefits.

In reform and innovation, we will accelerate the implementation of reform initiatives, advance key strategic tasks, and ensure the effective execution of Air China's strategic plans and reform measures. By deepening reforms, innovating management models, and enhancing core competitiveness, we will expedite our transformation into a world-class airline.

Table of Major Indicators[12]

Indicators	2022	2023	2024
Total assets (RMB million)	295,011	335,303	345,769
Total actual tax paid during this year (RMB million)	3,223	5,784	6,631
Number of registered aircraft (unit)	762	905	930
Average aircraft age (years)	8.59	9.36	9.90
Safe flight hours (1,000 hours)	1,166.9	2,529.5	2,950.9
RTK (million tonnes kilometres)	9,688	21,887	29,743
Passenger carried (million passengers)	45	125	155
Cargo and mail carried (1,000 tonnes)	902.8	1,070.4	1,480.1
Purchase from the five largest suppliers (RMB million)	24,598	42,684	48,780
Passengers' overall satisfaction (points)	87.5	88.4	87.9
Premium passengers' overall satisfaction (points)	87.6	89.4	88.3
Ground service satisfaction (points)	84.9	87	86.9
Ticket service satisfaction (points)	89.8	90.6	89.3
Cabin service satisfaction (points)	85.7	88.1	88.2
International baggage error rate (pieces/1,000 person-times)	1.56	1.78	1.38
Domestic baggage error rate (pieces/1,000 person-times)	0.2	0.12	0.09
Total number of passenger complaint cases from all channels (cases)	14,787	27,000	55,242
Passenger complaint handling rate (%)	100	100	100
Flight on-time performance (%)	95.45	87.94	88.07
Flight execution rate (%)	99.2	99.2	99.0
Total energy consumption (10,000 tonnes standard coal)	463.10	1,060.8	1,298.11
Aviation fuel consumption (1,000 tonnes)	3,102	7,157	8,766.1
Power consumption (MWh)	227,952.30	274,869.50	308,279.21
Gasoline consumption (tonnes)	1,708.80	2,276.80	2,354.78

Diesel consumption (tonnes)	3,945.50	5,830.70	5,966.68
Natural gas consumption (1,000 m³)	16,105	17,837	17,870.6
Thermal power (MKJ)	251,909.30	239,902.00	258,989.07
Other energy consumption (tonnes of standard coal)	6.4	36.7	45.52
Fuel consumption intensity (kg/tonne-km)	0.358	0.336	0.301
CO2 emission intensity (g/tonne-km)	1,126.50	1,058.70	946.8
CO2 emissions (1,000 tonnes)	10,053	22,791	27,882.0
Water consumption in the offices (1,000 tonnes)	4,531.0	5,268.0	5,424.0
Water consumption intensity in the offices (tonnes/person)	52	51.2	51.7
Environmental protection investment (RMB1,000)	244,159	385,010	541,997
Number of employees on the post (persons)	87,190	102,874	104,909
Labor contract signing rate (%)	100	100	100.00
Proportion of employees guaranteed by collective bargaining agreements (%)	100	100	100.00
Social insurance coverage (%)	100	100	100.00
Work-related deaths (persons)	1	0	2
Proportion of employees who died due to work (%)	0.001	0	0.002

* HKEX ESG Indicator Index

Indicator	Details	Sections
Mandatory disclosure indicators
Governance Structure
A disclosure of the board's oversight of ESG issues;		1.1ESG Governance System
The board's ESG management approach and strategy, including the process used to evaluate, prioritise and manage material ESG-related issues (including risks to the issuer's businesses); and		1.1ESG Governance System
How the board reviews progress made against ESG-related goals and targets with an explanation of how they relate to the issuer's businesses.		1.1ESG Governance System
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.		1.1ESG Governance System
"Comply or explain" provisions
A.Environmental
Aspect A1: Emissions
General Disclosure
A1.1	The types of emissions and respective emissions data.	3.4 Pollution Prevention
A1.2	Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility).	3.2 Addressing Climate Change
A1.3	Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility).	3.4 Pollution Prevention
A1.4	Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility).	3.4 Pollution Prevention
A1.5	Description of emissions target(s) set and steps taken to achieve them.	3.4 Pollution Prevention
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.	3.4 Pollution Prevention
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).	3.3 Resource Utilization
A2.2	Water consumption in total and intensity (e.g. per unit of production volume, per facility).	3.3 Resource Utilization
A2.3	Description of energy use efficiency target(s) set and steps taken to achieve them.	3.3 Resource Utilization
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.	3.3 Resource Utilization
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.	3.3 Resource Utilization
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 Employment and Employees' Rights and Interests
B1.2	Employee turnover rate by gender, age group and geographical region.	5.1 Employment and Employees' Rights and Interests
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.	Table of Major Indicators
B2.2	Lost days due to work injury.	5.3 Occupational Health and Safety
B2.3	Description of occupational health and safety measures adopted, and how they are implemented and monitored.	5.3 Occupational Health and 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: Labor Standards
General Disclosure
B4.1	Description of measures to review employment practices to avoid child and forced labor.	5.1 Employment and Employees' Rights and Interests
B4.2	Description of steps taken to eliminate such practices when discovered.	5.1 Employment and Employees' Rights and Interests
Aspect B5: Supply Chain Management
General Disclosure
B5.1	Number of suppliers by geographical region.	1.7Responsible Supply 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.	1.7Responsible Supply Chain
B5.3	Description of practices used to identify environmental and social risks along the supply chain, and how they are implemented and monitored.	1.7Responsible Supply Chain
B5.4	Description of practices used to promote environmentally preferable products and services when selecting suppliers, and how they are implemented and monitored.	1.7Responsible Supply 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 Customer Experience Enhancement
B6.3	Description of practices relating to observing and protecting intellectual property rights.	1.9Intellectual Property Rights Protection
B6.4	Description of quality assurance process and recall procedures.	4.1Service Quality Management
B6.5	Description of consumer data protection and privacy policies, and how they are implemented and monitored.	4.2 Customer Experience Enhancement
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.	1.6Anti-Corruption and Business Ethics
B7.2	Description of preventive measures and whistleblowing procedures, and how they are implemented and monitored.	1.6Anti-Corruption and Business Ethics
B7.3	Description of anti-corruption training provided to directors and staff.	1.6Anti-Corruption and Business Ethics
B8: Community Investment
General Disclosure
B8.1	Focus areas of contribution (e.g. education, environmental concerns, labor needs, health, culture, sport).	6.3 Supporting the Community
B8.2	Resources contributed (e.g. money or time) to the focus area.	6.3 Supporting the Community

Climate-related Disclosures

Climate-related Disclosures	Governance	Governance	3.2 Addressing Climate Change
	Strategy	Climate-related risks and opportunities	3.2 Addressing Climate Change
		Business model and value chain	3.2 Addressing Climate Change
		Strategy and decision-making	3.2 Addressing Climate Change
		Financial position, financial performance and cash flows	/
		Climate resilience	/
		Financial impacts of climate-related risks and opportunities	/
	Risk Management	Risk management	3.2 Addressing Climate Change
	Metrics and Targets	Greenhouse gas emissions	3.2 Addressing Climate Change
		Climate-related transition risks	3.2 Addressing Climate Change
		Climate-related physical risks	3.2 Addressing Climate Change
		Climate-related opportunities	/
		Capital deployment	/
		Internal carbon prices	/
		Remuneration	/
		Industry-based metrics	/
		Climate-related targets	/
		Cross-industry metrics and applicability of cross-industry metrics	/

GRI Index

Report Contents			GRI Standards Benchmarking
About this Report			2-1,2-3,2-4,2-5
Chairman's Statement			/
ESG Statement from Board of Directors			2-22
About Air China			2-1,2-3
2024 Highlights of ESG Performance			/
Sustainable Development Management	ESG Governance System		2-2,2-3,2-9,2-10,2-11,2-12,2-13,2-14,2-17,2-23,2-24
	Stakeholder Communication		2-2,2-3,2-4,2-9,2-15,2-16,2-23,2-29
	Materiality Determination		3-1, 3-2, 3-3
	Corporate Governance		2-2,2-4,2-9,2-10,2-11,2-12,2-13,2-14,2-17,2-18,2-19,2-20,2-23,2-24,405-1[13]
	Risk Management		2-4,2-15,2-23,2-24,2-27
	Anti-Corruption and Business Ethics		2-23,2-24,2-25,2-26,2-27,205-1,205-3,206-1
	Responsible Supply Chain		2-6,2-23,2-27,308-1,414-1
	Innovation-driven Development		/
	Intellectual Property Rights Protection		/
	Equal Treatment of Small and Medium Enterprises		2-23,2-27,203-2
	Digital Transformation		/
Safety Operations	Safety Management	Safety Targets	416-1,416-2
		Safety Governance Structure	416-1
		Emergency Management	416-1
		Safety Management Priorities	416-1
	Safeguarding Passenger Safety	Flight Safety	416-1
		Cabin Safety	416-1
		Ground Safety	416-1
		In-flight Food Safety	416-1
	Safety Culture		416-1
Low-carbon Development	Environmental Management and Ecological Protection	Environmental Management Enhancement	103-2
	Environmental Management and Ecological Protection	Conservation of Ecological Diversity	304-1
	Addressing Climate Change	Climate Governance	201-2
		Risk Management	201-2
		Metrics and Targets	305-1,305-2,305-4,305-5
		Our Actions	201-2
	Resource Utilization	Energy Management	203-3,302-1,302-2,302-4
	Resource Utilization	Water Management	303-1,303-2
	Pollution Prevention	Waste Gases Management	/
		Wastewater Management	303-4,303-5,306-5
		Waste Management	306-1,306-2,306-3,306-4,306-5,306-6
		Noise Management	/
		Safety Awareness Cultivation	416-1,103-2
Quality Service	Service Quality Management	Quality Management System	416-1,417-1
	Customer Experience Enhancement	Guaranteeing Flight Regularity	203-1
		Response to Customer Demands	416-1,417-1
		Privacy and Data Security	418-1
		Responsible Marketing	417-1,417-2,417-3
	Quality Enhancement		416-1,417-1
Employee Development	Employment and Employees' Rights and Interests	Employment Management	2-7,2-8,2-30,401-1,405-1,406-1,408-1
	Employment and Employees' Rights and Interests	Democratic Management	2-30
	Employee Training and Development	Training System for Technical Employees	404-1
	Employee Training and Development	Employee Career Development	404-2
	Occupational Health and Safety	Occupational Disease Prevention and Control	403-1,403-2,403-3,403-8,403-9
		Caring for Employees' Health	403-3,403-6
		Health Promotion and Education	403-3,403-6
	Employee Incentives and Care	Employee Salary and Performance	2-19,2-20,404-3
		Employee Welfare and Care	201-3,401-2,401-3
		Employee Activities	401-2
		Commendation of Excellent Individuals and Units	404-2
		Employee Service and Communication	201-3
Social Contribution	Rural Revitalization		203-1,203-2,413-1
	The Belt and Road Initiative and Industry-wide Co-building		2-28,2-29,3-2
	Supporting the Community		203-1,203-2,413-1

1⁴The age of Board members and other information can be found in the annual report.

Shanghai Stock Exchange Index

Dimension	Number	Topic	Articles	Sections
Environment	1	Climate change tackling	Article 21-28	3. Low-carbon Development-3.2Addressing Climate Change
	2	Pollutant discharge	Article 30	3. Low-carbon Development-3.4 Pollution Prevention
	3	Waste disposal	Article 31	3. Low-carbon Development-3.4 Pollution Prevention
	4	Ecosystem and biodiversity protection	Article 32	3. Low-carbon Development-3.1Environmental Management and Ecological Protection
	5	Environmental compliance management	Article 33	3. Low-carbon Development-3.1Environmental Management and Ecological Protection
	6	Energy usage	Article 35	3. Low-carbon Development-3.3 Resource Utilization
	7	Usage of water resources	Article 36	3. Low-carbon Development-3.3Resource Utilization
	8	Circular economy	Article 37	3. Low-carbon Development-3.3 Resource Utilization
Social	9	Rural revitalization	Article 39	6. Social Contribution-6.1 Rural Revitalization
	10	Contributions to the society	Article 40	6. Social Contribution
	11	Innovation-driven	Article 42	1. Sustainable Development Management -1.8Innovation-driven Development
	12	Ethics of science and technology	Article 43	1. Sustainable Development Management -1.8Innovation-driven Development
	13	Supply chain security	Article 45	1. Sustainable Development Management-1.7Responsible Supply Chain
	14	Equal treatment to small and medium-sized enterprises	Article 46	1. Sustainable Development Management 1.10 Equal Treatment of Small and Medium Enterprises
	15	Safety and quality of products and services	Article 47	2. Safety Operations-2.1Safety Management; 4.Quality Service-4.1Service Quality Management, 4.2Customer Experience Enhancement
	16	Data security and customer privacy protection	Article 48	4. Quality Service-4.2Customer Experience Enhancement
	17	Employees	Article 50	5. Employee Development
Sustainability-related governance	18	Due diligence	Article 52	1. Sustainable Development Management-1.5Risk Management
	19	Communications with stakeholders	Article 53	1. Sustainable Development Management-1.2Stakeholder Communication
	20	Anti-commercial bribery and anti-corruption	Article 55	1. Sustainable Development Management-1.6Anti-Corruption and Business Ethics
	21	Anti- unfair competition	Article 56	1. Sustainable Development Management-1.6Anti-Corruption and Business Ethics

Major Laws, Regulations and Corporate Policies

ESG Indicator

Applicable Laws and Regulations

Corporate Policies

A1 Emissions

Law of the People's Republic of China on the Prevention and Control of Air 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 Environment Pollution Caused by Solid Wastes

Integrated Emission Standard of Air Pollutants

The standard for Pollution Control on the Municipal Solid Waste Incineration

Integrated Emission Standard of Water Pollutants

Regulation on Urban Drainage and Sewage Treatment

Technical Policy on the Prevention and Control of Pollution Caused by Hazardous Waste

Provisions on the Administration of Urban Construction Garbage

Waste Disposal Management Procedures

Solid Waste Management Procedures

Special Emergency Response Plan for Hazardous Waste

Hazardous Waste Disposal Agreement

Notice on Promoting Plastic Pollution Control in Offices

Waste Gas Emission Management Procedures

Wastewater Discharge Management Procedures

A2 Use of

Resources

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 of Major Energy-Consuming Entities

Water Management Regulations

Energy Conservation and Emission Reduction Management Manual

Energy-Saving and Environmental Protection Management Methods

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

The Circular Economy Promotion Law of the People's Republic of China

Emergency Response Plan for Environmental Incidents

Energy Conservation and Environmental Protection Responsibility Letters

Air China Environmental Management Manual

Environmental Management Implementation Plan

List of Environmental Laws, Regulations, and Other Requirements (2024 Edition)

Climate

Change

The 14th Five-Year Special Plan for Green Development

The 14 Five-Year Plan

China's Policies and Actions for Addressing Climate Change (2022)

Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful

Implementation of the New Development Philosophy

Notice by the State Council of the Action Plan for Carbon Dioxide Peaking Before 2030

Air China Green Development and Dual-Carbon Key Task List

Action Plan for Carbon Peaking

Employment

Labor Law of the People's Republic of China

Labor Contract Law of the People's Republic of China

Employment Promotion Law of the People's Republic of China

Employee Recruitment Management Regulations

Collective Contract

Special Collective Contract for the Protection of Female Employees' Rights and Interests

Provisions on Labor Contract Management

Employee Position Performance Management Measures

List of Matters for Review by the Workers' Representative Assembly and the Joint Meeting of Its Delegation Chairs

Health and

Safety

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 Central Enterprises

Civil Aviation Administration's Regulations on the Management of Dual Prevention Mechanisms of Graded Control and Hidden Danger Investigation and Governance of Civil Aviation Safety Risks

Law of the People's Republic of China on the Prevention and Control of Occupational Diseases

Provisions on the Administration of Occupational Health at Workplace

Notice of the General Office of the National Health Commission of the People's Republic of China on Further Strengthening Occupational Health Training for Employers

Regulations on Work-Related Injury Insurance

Regulations on Operation Qualification of Large Aircraft Public Air Transport Carriers (CCAR-121)

Provisions on the Administration of Civil Aviation Safety (CCAR-398)

Flight Inspector Manual

Flight Instructor Manual

Guidelines on the Implementation of the Company's Three-level Risk Control Mechanism Across Business Areas

Implementation Measures for Backup of Base Units

Emergency Response Manual

Emergency Response Management Procedures for Safety-related Incidents (Trial Version)

Notice on the Special Campaign for the Regulation of Dangerous Goods Air Transport at Terminals

Terminal Aviation Security Risk Alert Checklist

Air China ARJ21-700 Aircraft Terminal Support Operation Guide

Dual Prevention Work Procedure for Safety Risk Classification Control and Hidden Danger Investigation and Management

Flight Schedule Adjustment Procedure

Collaborative Mechanism for Domestic Flight Temporary Diversions

Workflow for Flight Traffic Management Positions

Flight Normality Management Measures

Detailed Rules for Reporting Information on Major Emergencies of China National Aviation Holding Corporation Limited and Air China Limited

Notice on Further Clarifying the Centralized Reporting Responsibilities for Major Group Emergencies

Aviation Security Program

CNAHC Implementation Plan for the Three-Year Fundamental Improvement Action of Work Safety (2024-2026)

Cabin Service Department Safety Practitioner Work Style Long-term Mechanism Construction Implementation Plan

Ground Services Department Aviation Safety Management Manual

Ground Services Department Aviation Safety Management Procedures

Ground Services Department Safety Practitioner Work Style Long-term Mechanism Construction

Aviation Safety Management Manual

Aviation Safety Management Training Outline

Regulations on Occupational Disease Prevention and Control of CNAHC and Air China Limited

Safety Tips for Strengthening the Occupational Health and Protection of Crew Members

Food Safety Management Manual

Public Health Safety Manual

Notice on Streamlining the Workflow of Handling Work-related Injury Insurance Business

Employee Physical Examination Management System

Development

and Training

Notice on Further Promoting the Reform of Market-oriented Assessment and Incentive Mechanism

Training Management Manual

Notice on Establishing the Qualification and Capability Level System for Professional Technical and Vocational Skills Personnel of Air China

Compliance Training Outline

Training Outline on Work Style for All Employees

Administrative Measures for the Evaluation and Employment of Professional Talents

Labor

Standards

Labor Law of the People's Republic of China

Labor 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

Employee Code of Conduct

Punishment Regulations for Labor Discipline Violation

Supply Chain Management

Bidding Law of the People's Republic of China

Regulations on the Implementation of the Bidding Law of the People's Republic of China

Civil Code of the People's Republic of China

Procurement Management Regulations of Air China Limited

Standard Procurement Management Procedures of China National Aviation Holding Corporation Limited and Air China Limited

Procurement Plan Management Regulations of China National Aviation Holding Corporation Limited and Air China Limited

Supplier Management Regulations of China National Aviation Holding Corporation Limited and Air China Limited

Procurement Review Management Regulations of China National Aviation Holding Corporation Limited and Air China Limited

Notice on the Implementation of Green Procurement

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 on the Implementation of the Trademark Law of the People's Republic of China

Patent Law of the People's Republic of China

Regulations on the Implementation 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

Guidelines for Standardization Work

Madrid Agreement Concerning the International Registration of Marks

Service Quality Management Manual

Service Quality Management System Usage Management Regulation

Service Quality Inspection Management Regulations

Service Quality Risk and Hazard Management Regulations

Service Quality Prevention and Corrective Action Management Procedures

Air China Flight Operation Support Standards

Air China Flight Normality Management Measures

Special Passenger Service Standards

Management Regulations for Service Remediation Authorization

Data Management Regulations

Data Security Management Implementation Guidelines

Cybersecurity Management Measures

Passenger Personal Information Management Regulations

Data Security Management Framework of the Information Management Department

Digital Transformation Action Plan (2022-2025)

Special Implementation Plan for the Digital Transformation Action Plan

Legal Affairs Management Regulations of China National Aviation Holding Corporation Limited and Air China Limited

Intellectual Property Management Measures of China National Aviation Holding Corporation Limited and Air China Limited

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 Prohibition of Commercial Bribery Actions

Anti-Monopoly Law of the People's Republic of China

Bidding Law of the People's Republic of China

Supervision Law of the People's Republic of China

Rules for Disciplinary Inspection and Supervision Organs on Handling Reports and Complaints

Regulations of the Supreme People's Procuratorate on Protecting Citizens' Rights to Report

Securities Law of the People's Republic of China

Code of Corporate Governance for Listed Companies

Guide to the Anti-Monopoly Compliance of Undertakings

Regulations on Fair Competition Review

Compliance Management Regulations of China National Aviation Holding Corporation Limited and Air China Limited

Code of Conduct for Compliance of China National Aviation Holding Corporation Limited and Air China Limited

Air China Limited Overseas Compliance Management Regulations

Overseas Compliance Training Manual (Chinese-English Bilingual Edition)

Audit Rectification Tracking Management Measures of China National Aviation Holding Corporation Limited and Air China Limited

Implementation Rules for the Handling of Letters and Visits by Discipline Inspection and Supervision Institutions

Implementation Measures for Applying the First Form

Compliance Manual for Data in Various Jurisdictions (2022 Edition)

Compilation of Antitrust Cases in the Aviation Industry

Compliance Manual for Data in Various Jurisdictions

Recommended Measures for Discipline Inspection and Supervision Work

List of Enterprises Prohibited from Transactions (2024)

Summary of Integrity Risk Prevention and Control Measures in Key Areas

Implementation Rules for the Handling of Letters and Visits by Discipline Inspection and Supervision Institutions (for Trial Implementation)

Education and Training Plan for Inspection and Oversight Leaders (2023-2027)

Implementation Measures for the Construction of the Inspection Leader Team

Management Measures for the Key Inspection Talent Pool

Management Measures for Inspection Staff

Work Rules of the Strategy and Investment Committee of the Board of Directors

Work Rules of Audit and Risk Control Committee (Supervision Committee)

Implementation Measures for High-Standard Fulfillment of Social Responsibility in the New Era by CNAHC

Articles of Association

Rules of Procedure for Shareholders' Meeting

Rules of Procedure for Board Meetings

Work Rules for Independent Directors

Summary of Board Resolution Implementation

Feedback Form on Execution of Board-authorized Matters

Guidelines on Articles of Association for Subsidiaries

Management Measures for the Performance of Duties by Directors in Investment Enterprises Without a Board of Directors

Administration Office's Rules of Procedure

Implementation Rules for Risk Assessment and Reporting

Work Manual for Internal Control, Supervision, and Evaluation

Community

Investment

Administrative Measures for External Donations

Implementation Opinions on Practicing Targeted Assistance Work

Articles of Association of Chinese Youth Volunteers Association

Regulations on Youth Volunteer Services

Administrative Measures for Volunteer Teaching Program of "CNAHC Blue Sky Classroom"

Third-Party Assurance

ASSURANCE STATEMENT CN25/00001820

SGS-CSTC'S REPORT ON SUSTAINABILITY ACTIVITIES IN THE AIR CHINA LIMITED'S SUSTAINABILITY REPORT FOR 2024

NATURE OF THE ASSURANCE/VERIFICATION

SGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. (hereinafter referred to as SGS) was commissioned by AIR CHINA LIMITED (hereinafter referred to as Air China) to conduct an independent assurance of the Chinese version of Air China's 2024 Sustainability (ESG) Report (hereinafter referred to as the Report).

INTENDED USERS OF THIS ASSURANCE STATEMENT

This Assurance Statement is provided with the intention of informing all Air China's Stakeholders.

RESPONSIBILITIES

The information in the Report and its presentation are the responsibility of the directors and the management of Air China. SGS has not been involved in the preparation of any of the material included in the Report.

Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of assurance with the intention to inform all Air China's stakeholders.

SGS hereby states that it shall not be held responsible or liable for any direct, indirect, incidental, or consequential damages or losses arising from or in connection with the use of information provided in this report.

ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCE

The SGS ESG & Sustainability Report Assurance (SRA) protocols used to conduct assurance are based upon internationally recognised assurance standards including the AA1000 series of standards and ISAE3000.

The assurance of this report has been conducted according to the following Assurance Standards:

Assurance Standard Options	Level of Assurance
AA1000AS v3 Type 2	Moderate

SCOPE OF ASSURANCE AND REPORTING CRITERIA

The assurance engagement was conducted to evaluate the accuracy and reliability of the sustainability performance information included in the Report. Additionally, it assessed the extent to which the Report's content is in accordance with the requirements of Appendix C2 Environmental, Social and Governance Reporting Code of Listing Rules published by Hong Kong Exchanges and Clearing Limited's (HKEX).

Additionally, it assessed the extent to which the Report's content refers to the requirements of GRI Standards 2021.

ASSURANCE METHODOLOGY

The assurance comprised a combination of pre-assurance research, on-site interviews with relevant employees and departments of the Air China head-office,which is located in 30 Tianzhu Road, Airport Industrial Zone, Shunyi District, Beijing, P.R. China,documentation and record review and validation where relevant.

LIMITATIONS AND MITIGATION

Data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process.

The greenhouse gas emissions related data in the Report has not undergone verification by an independent third-party auditor. In the context of the present assurance engagement, our procedures were limited to sample- based validation.

No compliance verification was conducted in respect of Part D: Climate-related disclosures of the Appendix C2 Environmental, Social and Governance Reporting Code of Listing Rules published by HKEX, and the climate- related verification was still implemented in accordance with the previous version of Appendix

C2 Environmental, Social and Governance Reporting Guide.

This assurance engagement was restricted to the group level of Air China headquarters and did not include traceability of original data from all subordinate institutions.

STATEMENT OF INDEPENDENCE AND COMPETENCE

The SGS Group of companies is the world leader in inspection, testing and certification, operating in multiple countries and providing services. SGS affirm our independence from Air China, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.

The assurance team was assembled based on their knowledge, experience and qualifications for this assignment.

FINDINGS AND CONCLUSIONS ASSURANCE/VERIFICATION OPINION

On the basis of the methodology described and the assurance engagement performed, the specified

performance information included in the scope of assurance is accurate, reliable, and has been fairly stated.

CONCLUSIONS, FINDINGS AND RECOMMENDATIONS BASED ON APPENDIX C2 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTING CODE OF LISTING RULES PUBLISHED BY HKEX

The assurance team concludes that the Report has been prepared in accordance with the requirements of

Appendix C2 Environmental, Social and Governance Reporting Code of Listing Rules published by HKEX.

CONCLUSIONS, FINDINGS AND RECOMMENDATIONS BASED ON GRI STANDARDS 2021

The assurance team concludes that the Report has referred to the requirements of GRI Standards 2021.

FINDINGS AND RECOMMENDATIONS

All observations pertaining to commendable practices, sustainable development activities, and managerial recommendations identified throughout the assurance process have been thoroughly documented in the Internal Management Report on Sustainability Reporting Assurance. This report has been officially presented to the relevant management divisions of Air China to serve as a reference for their ongoing efforts towards continuous improvement.

For and on behalf of SGS-CSTC David Xin

Sr. Director - Business Assurance

16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, P.R. China

Mar. 25th, 2025 WWW.SGS.COM

Feedback Collection

Dear reader,

Thanks for reading the 2024 Sustainability & ESG Report of Air China Limited, which is the 17th social responsibility (Sustainability) report published by Air China. You are welcome to provide us with your comments and suggestions on this report for consideration and adoption, enabling us to make continuous improvements in future report preparation and to improve our corporate social responsibility management and practice. We look forward to your valuable comments and suggestions.

1. Do you think the overall report is satisfactory?