Air China Limited (“Air China” or the "Company", HKEX: 753; LSE: AIRC; SSE: 601111; ADR OTC: AIRYY) announced its third quarter results for the three months ended September 30, 2007 (the "Period").

(Important notice: All figures in this report are unaudited and are prepared in accordance with the PRC GAAP. The operating figures include those of Air Macau.)

Air China continuously achieved satisfactory operating results during the Period. Its operating revenue amounted to RMB 14.472 billion, and its profit from operations was RMB2.832 billion. Net profit of the Company was RMB2.187 billion while earnings per share and net return on asset were RMB0.18 and 7% respectively.

When the financial figures of the first nine months of this year were aggregated, the Company recorded operating revenue of RMB 37.216 billion while profit from operations was RMB 4.527 billion. Net profit of the Company was RMB 3.488 billion. Earnings per share and net return on asset were RMB0.29 and 11.16% respectively.

In the third quarter of 2006, the Company registered net profit of RMB 2.979 billion, including the gain from the disposal of the Company’s equity interest in Hong Kong Dragon Airlines Limited.The Company recorded a 92.8% growth of its net profit in the third quarter when compared with the same period of last year, if the one-off gain was excluded. The stable growth of the Company’s results was mainly attributable to various factors, including the sustained rapid development of the aviation industry and the appreciation of RMB value.

Benefiting from the continuing boom of the airline industry and traditional peak traveling season, Air China continued to achieve satisfactory operating performance. Passenger traffic measured by revenue passenger kilometer (“RPK”) during the Period was 19,167 million, an increase of 5.4% over the same period of 2006. RPK on international routes and domestic routes was 8,289 million and 9,962 million respectively, representing increases of 4.9% and 6.7% respectively. RPK on Hong Kong and Macau routes was 916 million, representing a decrease of 2.9%. In the first nine months of this year, passenger traffic measured by revenue passenger kilometer (“RPK”) was 52.453 billion, an increase of 10.9% over the same period in 2006.

In the Period, passenger load factor of international routes, domestic routes and regional routes increased 0.65, 3.81 and 2.49 percentage points to 82.05%, 83.69% and 79.11% respectively.

Cargo traffic experienced growth of 9.2% to 1.006 billion RFTK in the Period. Cargo capacity (“AFTK”) decreased 2.3% to 1.722 billion. The cargo load factor was 58.44%, an increase of 6.18 percentage points.

About Air China

Air China Limited (Air China) is the national flag carrier of China and a leading provider of air passenger, air cargo and airline-related services in China. Its operational head office is in Beijing, the capital of the PRC and an important aviation hub for domestic and international flights. It also provides airline-related services, including aircraft maintenance, ground services and in-flight catering services in Beijing, Chengdu and other locations through its own business units and joint ventures. Air China was listed on the Hong Kong Stock Exchange and the London Stock Exchange on December 15, 2004 under codes 0753 and AIRC respectively. On July 2, 2006, Air China issued its American Depositary Receipt (ADR) listing in New York under the code AIRYY. On August 18, 2006, Air China's A share was listed on the Shanghai Stock Exchange under code 601111. Air China was designated on August 4, 2004 as the sole passenger airline partner of the Beijing Olympic Games. For further details, please visit Air China's website: www.airchina.com.cn.

Disclaimer

This press release contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those projected.