• The information contained in this presentation,including all forward-looking information, issubject to change without notice, whether as aresult of new information, further events orotherwise, and China Airlines(the “Company”)
undertakes no obligation to publicly update orrevise the information contained in thispresentation.

Legal
China Airlines
Disclaimer
2020 Investor Conference
December 1, 2020
TSE：2610• No guarantees regarding the completeness,accuracy, and reliability of information contained
are made explicitly or implicitly. They are notintended to represent complete statement of theCompany, industry or future development.

1Agenda

1. First Three Quarters Financial Resultsfor 2020
1) Operating Performance2) Composition of Op. Revenue & Cost
3) Financial Risk Management

2. Impact of COVID-19 Pandemic
1) Industry Environment Update2) Operational Performance Update
3) Response to COVID-19

3. Post-COVID-19 Outlook

2

First Three Quarters Financial Results for2020

3

Operating Performance – 2020Q3
Consolidated Financial Statistics

TWD 100 Million
2019Q32020Q3

YoY %Operating Revenue

430.05266.12-38.12%Net Operating Income(Loss)

14.62-3.57-Net Income(Loss) After Tax

4.96-8.17-Net Income(Loss) Attributable toOwners of the company

3.40-7.08-Earnings(Loss) Per Share (TWD)

0.06

-0.13

-Group Revenue

TWD 100 Million
2019Q32020Q3

YoY %Passenger Revenue

290.9632.41-88.86%

Cargo Revenue

106.82215.09101.36%

Other Operating Revenue

32.27

18.62

-42.3%

Total Group Operating Revenue

430.05266.12-38.12%
4

Operating Performance – 2020Q1-Q3
Consolidated Financial Statistics

TWD 100 Million

2019Q1-Q3

2020Q1-Q3

YoY %1,263.02

854.84-32.32%Net Operating Income(Loss)

27.96-5.8-Net Income (Loss) After Tax

0.58-23.75-Net Loss Attributable toOwners of the company-3.46-20.22-

Loss Per Share (TWD)

-0.06

-0.37

-

Operating Revenue

Group Revenue

TWD 100 Million
2019Q1-Q3

2020Q1-Q3

YoY %845.52234.83-72.23%

Cargo Revenue

318

560.4676.25%

Other Operating Revenue

99.5

59.55

-40.15%

1,263.02

854.84-32.32%Passenger Revenue

Total Group Operating Revenue

5Composition of Op. Revenue - CI
4%

Passenger
Revenue

Cargo Revenue 72%

24%

Passenger Revenue

67%

Cargo Revenue

29%

Other Op. Rev.

2019
Q1-Q3

Other Op. Rev.

2020
Q1-Q3

4%

Passenger, Cargo and other operating revenue accounted for 24%, 72%
and 4% respectively in the first three quarters of 2020.

6Composition of Op. Expenses - CI
1.9% 1.6%

Airport & Ground
Handling
Personnel

21.9%

16.5%

Maitenance

Personnel

30.7%

13.7%

13.6%

3.6%

Rental &Depreciation
16.6%

Maitenance
13.3%

4.4%

4.0%

Others

Airport & Ground
Handling

3.5%

Pax Service

Fuel

19.4%

Sales&General Adm.

2019
Q1-Q3

12.1%

Rental &Depreciation
23.0%

OthersFuel

Pax Service
Sales&General Adm.

2020
Q1-Q3

3.7%

Fuel cost accounted for 21.9% of operating expenses due to COVID-19
pandemic in the first three quarters of 2020.

7

Financial Risk Management – Fuel (CI)
Fuel Cost
2019Q1-Q3

2020Q1-Q3

YoY%

Jet Fuel (MOPS)USD/BBL

77.69

44.04

-43.3%

Fuel Consumption

10KBBL1,300.39

1,026.71-21%

Fuel Expend

TWD/100Million

333.14166.23-50.1%

Hedging Loss

TWD/100Million

0.14

0.34

142.9%

Total Fuel Cost

TWD/100Million

333.28166.57-50%

Fuel Hedging
YearHedging%2020.12-2021.11

0.16%

8Impact of COVID-19 Pandemic
Industry Environment Update

9Air Travel Recovery Slower Than Expected
IATA forecast global passenger traffic will not return to pre-COVID-19 levels

until 2024 and full-year 2020 traffic to be down 66% compared to 2019.

Previous Forecast -63%

Latest Forecast -66%

Source： IATA Economics

10IMF Upgraded 2020 Economic Forecast
The global economy is projected to contract by 4.4% in 2020 — an upward revisionfrom an estimate of -4.9% made in June due to the better-than-expected growth inadvanced economies and Mainland China.
Major Economies 2020→2021 Economic Growth RateEuro Zone
-10.2% → 6.0%
-8.3% → 5.2%

America-8.0% → 4.5%
-4.3% → 3.1%

Mainland China

Japan

1.0% → 8.2%
1.9% → 8.2%

-5.8% → 2.4%
-5.3% → 2.3%

India
-4.5% → 6.0%
-10.3% → 8.8%

Taiwan
-4.0% → 3.5%
0.0% → 3.2%

Brazil
-9.1% → 3.6%
-5.8% → 2.8%

Forecast in June
Forecast in October

Source： IMF

11

Source: CIER

11

Impact of COVID-19 Pandemic
Operational Performance Update

12

Passenger Performance
Revenue

Composition by Region

TWD 78.82 Billion
Trans Pacific
Ocean
21%

Australia/New
Zealand9%▼73.8%Europe12%
Hong Kong
4%

TWD 19.07 Billion

2019 Q1-Q3•

2020 Q1-Q3

South East
Asia
21%Mainland
China8%

North EastAsia
25%

Passenger revenue decreased by 73.8% to TWD 19.07 billion in the first threequarters of 2020.

•Northeast Asia accounted for the largest share (25%) of revenue, followed byTrans Pacific Ocean and South East Asia with revenue share of 21% respectively.
13Passenger Operation Index
ASK (MN)
39,255

Load Factor
80.7%

2.30

▼19.3ppt▼68.0%

Yield (TWD)

61.4%

2.47
▲7.4%

12,569

2019Q1-Q3

2020Q1-Q3

2019Q1-Q3

2020Q1-Q3

2019Q1-Q3

2020Q1-Q3

ASK and load factor decreased by 68.0% and 19.3ppt respectively while yield
increased by 7.4% in the first three quarters of 2020.

14

Impact on Passenger Traffic
5,000
4%
0%
4,000
3,240
3,128
3,000

-23%
3,253

3,229

3,271

2,984

3,194

3,331

3,315

3,157
-40%

2,309
-65%
2,000
-80%

1,150

1,000

Round Trips Jan

-97%

-98%

-97%

-95%

89

53

86

156

-94%
187

-93%
232
-120%

FebMarAprMayJun20192020

YoY%JulAugSep•

CAL provided a minimum passengers-carried schedule to meet market demand.

•Our frequencies between April and June plunged more than 97% compared to the same period
last year; however there is slowly recovering with essential travelling in the third quarter.
15

Passenger Impact- Skeletal NetworkRegion

North America

Route Adjustments

Los Angeles/San Francisco 3 Flights/wk, Vancouver 2 Flights/wk, NewYork 2 Flights/mth

EuropeAmsterdam 2 Flights/wk, Frankfurt/ London 1 Flight/wk

Oceania

Sydney 1 Flight/wk, Melbourne/ Brisbane 2 Flights/mth, Auckland 1Flight/mth

Northeast Asia

Tokyo 3 Flights/wk, Seoul 2 Flights/wk, Osaka/ Fukuoka/ Nagoya 1Flight/wk

Southeast Asia

Jakarta 1 Flight/day, Manila 4~5 Flights/wk, Phnom Penh 2 Flights/wk,
Vietnam 11~12 Flights/wk, Bangkok 3~4 Flights/wk, Singapore/ Kuala
Lumpur 2 Flights/wk, Penang/Yangon 1~2 Flights/wk

Mainland China

Shanghai 9 Flights/wk, Xiamen 3 Flights/wk, Chengdu 2 Flights/wk, Beijing
1 Flight/wk(KHH departures included)

Hong Kong(KHH departures included)

10 Flights/wk

16

Cargo Performance
Revenue

Composition by Region

TWD 55.89 Billion

Europe9%▲77.4%TWD 31.05 Billion
Trans PacificOcean
58%

2019Q1-Q3•

Australia/New Zealand
3%

North EastAsia
5%
MainlandChina
6%

HongKong
4%

South EastAsia
15%

2020Q1-Q3

Cargo revenue totaled TWD 55.89 billion, a 77.4% increase, in the first threequarters of 2020.

•Trans Pacific Ocean accounted for the largest share(58%) of revenue, followed bySoutheast Asia and Europe with revenue share of 15% and 9% respectively.
17Cargo Performance Index
FATK (MN)
5,860

Load Factor

Yield (TWD)

6,286▲ 7.3%

2019 Q1-Q3

12.44

66.3%

2020Q1-Q3

71.5%▲ 5.2ppt

2019Q1-Q38.11

2020Q1-Q3

2019Q1-Q3▲53.4%

2020Q1-Q3

FATK increased by 7.3% and load factor grew 5.2 ppt with a 53.4% rise inyield in the first three quarters of 2020.

18

Response to COVID-19- Passenger- Cargo

19

Flight Schedule Adjusted in Line with Market Demand
Operations remain active in adapting to the dynamic changes of the market landscapeand governments regulations.

Operate selected routes to maintain network connectivity, taking
advantage of sixth traffic rights.
Gradually resume flights to align with boarder reopening, regional
business travel needs and travel bubble.

Increase Taiwan domestic air travel market via CAL Group’s
subsidiaries .

Operate charter flights to generate revenue.

20

Resuming Operation with Safety Procedures
CAL was also rated as the top safest airlines to fly during COVID-19 by Safe Travel
Barometer in August, having implemented numerous pro-traveler health and safety
initiatives.
Clean Cabin
Sky Boutique Duty FreeService
COVID-19 Service Information
Flight Messaging Service

Prepare for Travel At the Airport

Wear face masks
Temperature checks
Social distancing
CAL Lounges are temporarily closed
Safe Airport Journey Plan

Cabin Crew Protective Equipment
PA Announcement
Inflight Supplies
Inflight Meal
Fresh and recycled air quality
Onboard Lavatory

On BoardArrival

Cabin Disinfection & Cleaning
Meal Carts Disinfection
Luggage Disinfection upon Arrival

21

CAL Ranked Top Global Cargo Carrier in 2019
With a fleet of 18 Boeing 747-400 freighters in operation and well-establishednetwork, CAL holds the edge on air cargo capacity during COVID-19.
Freight Tonnes
Carried ('000)

Airlines

Airlines

FRTK(m)1st Emirates

2,413

1st Qatar Airways

13,024

2nd Qatar Airways

2,281

2nd Emirates

12,052

3rd Federal Express2,192

3rd Cathay Pacific Airways

10,930

4th Cathay Pacific Airways

1,716

4th Federal Express

8,851

5th United Parcel Service

1,539

5th Korean Air

7,390

6th Turkish Airlines

1,433

6th Lufthansa

7,723

7th Korean Air

1,383

8th China Airlines

1,374※ 2019 Top Airlines by International Cargo Traffic

13th China Airlines

Source：WATS World Air Transport Statistics 2020

5,334
22

Expanding Cargo Service to Seize the window ofOpportunity
CAL leverages Taiwan’s strategic position and cargo capacity to make 10% more cargoflights per week.
• Utilize CAL 18 747-400 freighters• Make the most of belly capacity of passenger aircraft• Improve operational efficiency with 3 upcoming 777Fdeliveries• Monthly route review and flexible routeadjustment• Priority for high-yield goods andregular project shipment for route
profit boost• Pursue charter or BSA business tomaintain load factor and revenue uplift

34 destinations with 100 flights per week for
freighter service
23

Post-COVID-19 Outlook24

New Normal of Air travel in Post-Covid-19 AgeMarket• Domestic and regional air travel will recover first.
• 3rd/4th traffic rights will be dominant and 6th traffic right will complement.
• Family visit and leisure travel will recover first.
• Local staycation becomes popular.
Passenger• International travelers will be most concerned with safety.

• Wearing masks, checking temperatures, and cleaning hands throughout the journey
will be required.
Service• Digital solution will be implemented to reduce touchpoints literally in the check-in

and boarding process25

Post-COVID-19 Cargo Market Outlook
Potential Business• COVID-19 has led to a major change in consumer behavior toward online channels.
Online demand for essentials and entertainment has increased.
• Work-from-home triggers a jump in demand for chips, laptops and network goods.

• Vaccines against COVID-19 are under active development.

26

Proactive COVID-19 Response Strategies
01 Conserve
cash-flow& lower thecost

02

04 Rebuild
passenger

with
05 Comply
regulations

confidencein air travel

Maintainbusiness
continuity
and stability

03

Integrate
sales andmarketingstrategy

to promote
safe travel

27

Giving Back to Society and Creating Social ValueCAL wins awards for seventh consecutive year at the “Oscars” of Taiwan Corporate
Sustainability- Taiwan Corporate Sustainability Awards (TCSA) and two consecutive
year at Global Corporate Sustainability Awards (GCSA).

28

Thank you# We fly We fight# We will all be fine2020.12China Airlines│No.1, Hangzhan S. Rd., Dayuan Dist., Taoyuan City, Taiwan
TEL│03.399.8888