THE COMPLETION OF SALE OF 51% EQUITY INTEREST

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中國國際航空股份有限公司

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 00753)

ANNOUNCEMENT IN RELATION TO

THE COMPLETION OF SALE OF 51% EQUITY INTEREST IN AIR CHINA CARGO

Reference is made to the announcement of Air China Limited (the "Company") dated 30 August 2018 and the circular dated 4 September 2018 in relation to the sale of 51% equity interest in Air China Cargo by the Company to Capital Holding. Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings as defined in the announcement and circular.

As at 28 December 2018, the registration change for the Disposal has been completed at Beijing Municipal Administration of Industry and Commerce, and Capital Holding has been registered as the shareholder holding 51% equity interest in Air China Cargo. The Company no longer holds any equity interest in Air China Cargo.

Upon completion of the Disposal, the resources of the Company will be further focused on air passenger transportation business, which will help the Company enhance the management capacity and competitiveness for the air passenger transportation business and is in the interests of the Company and its Shareholders as a whole.

By Order of the Board

Air China Limited

Zhou Feng Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 28 December 2018

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Xue Yasong, Mr. John Robert Slosar, Mr. Wang Xiaokang*, Mr. Liu Deheng*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.

* Independent non-executive director of the Company