1st Half 2019 Operating Results and Outlook

Composition of Op. Expenses 1st Half 2018 TWD 71.12 Billion 1st Half 2019 TWD 72.17 Billion Pax. Service Insurance 0.2% Others 3.3% 4.0% Sales & General Adm. 4.0% Maintenance 12.3% Fuel 31.8% Rental& Depreciation 17.1% Personnel 14.0% Insurance Pax. Service 0.2% 4.0% Others 3.5% Sales & General Adm 4.3% Maintenance 13.4% Airport & Ground Handling 13.3% Rental& Depreciation 16.8% Personnel 13.8% Fuel 30.5% Airport & Ground Handling 13.5% In the first half of 2019, Fuel cost accounted for 30.5% of operating expenses mainly due to the decrease in oil prices CHINA AIRLINES 7

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