1st Half 2019 Operating Results

Global Cargo Market Trend Year-over-year FRTK (traffic) and FATK (capacity) growth 12% 10% 8% 6% FATKS Growth 4% 2% 0% -2% -4% FRTK Growth 3.3% -2.0% 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 Air Cargo growth is expected to weaken in 2019 due to recent escalating China-US trade war and overstock resulting from unexpected cargo growth demand during past 2 years. CHINA AIRLINES Sources: IATA Monthly Statistics, Boeing Market Analysis 25

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