Impact of COVID-19 on Industry Environment

Composition of Op. Expenses - Cl 2020 Q1-Q3 Fuel 21.9% Personnel Rental & Depreciation 16.5% 23.0% Airport & Ground Handling 12.1% 1.9% 1.6% Maitenance 19.4% Others Pax Service 3.6% Sales&General Adm. 2019 Q1-Q3 Fuel 30.7% Airport & Ground Handling 13.7% Personnel 13.6% Rental & Depreciation Maitenance 16.6% 13.3% Sales&General Adm. Others 3.7% Pax Service 4.4% 4.0% Fuel cost accounted for 21.9% of operating expenses due to COVID-19 pandemic in the first three quarters of 2020. CHINA AIRLINES 7

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