China Airlines

2024 1st Investor Conference
Jun.6 ’24

Safe Harbor Notice•

The information disclosed in this presentation and its accompanying announcements, including content
relating to business outlooks, financial operations, and business forecasts, is based on information
derived from internal corporate data and external economic developments as a whole. The Company is
not responsible for updating or making adjustments to the contents of this presentation to reflect theactual needs of the market, the latest policies or the ongoing changes of the economics.
•This information disclosed here only represents the outlooks based upon the available data for thecurrent time and does not indicate or ensure the actual performance in the future. Neither should thedata be taken as the full statement of the future development of the company nor the industrial
phenomena.

•For the convenience of readers, this presentation has been translated into English from an original
Chinese version. If there is any conflict between these two versions any misinterpretation in place ,information in the Chinese version shall prevail.

2Agenda
 2024Q1 Operating Performance Market Outlook

Passenger Market, Performance & Strategies
Cargo Market, Performance & Strategies
Fleet Development
Sustainability Actions and Achievements

32024 Q1 Operating Performance

2024 Q1 Financial Performance
NTD 100 Million

2024 Q1

2023 Q1

Differences

YoY

486.5

426.9

59.5

13.9%

Passenger revenue

330.1

245.5

84.6

34.5%

Cargo revenue

123.1

157.0

-33.9

-21.6%

Other operating revenue

33.3

24.4

8.9

36.4%

Net Operating Income

38.5

18.3

20.3

111.0%Net Income After Tax

34.1

14.0

20.1

144.3%Net Income Attributableto Owners of thecompany

31.0

13.1

17.9

137.3%

Earnings Per Share (TWD)

0.51

0.220.29

131.8%

Operating revenue

5Operating Revenue by Source
The share of passenger revenue has gradually increased to nearly 70% of total revenue, and passenger revenue inthe first quarter of 2024 increased more than 30% compared with the same period in 2023

Monthly revenue

NTD100 million

Pax Rev

160

Cgo Rev

Other Rev

12080

92

107

4077

61

73

8176

Mar

AprMay96

92

JulAug

79

87

7784

Nov

Dec

96
90

0JanFeb

Jun2023
Based on individual financial report

SepOctJanFebMar2024
6

The growth operating revenue in 2024Q1
The operating revenue over the first quarter of 2024 increased by 9.6% compared with thesame period last year. Mostly contributed by the 32.1% annual growth rate of passenger
revenue, the passenger revenue from all regions increased significantly.
NTD100 million

Quarterly revenue

2024Q1passenger revenue distribution
by region (YoY)

420

NorthAmerica
+17%

380

2024 Q1,416

340
2023 Q1,
3802023 Q2,414

2023 Q3,413

2023 Q4,411

Europe,+15%

China+60%

North East
Asia
+58%
South East
Asia,+30%

Oceania,+33%

300

Based on individual financial report7

Cost Breakdown and Comparison
0%2024Q1

2023Q1

10%

20%

33.2%

30%

40%

50%

14.3%

60%

16.7%

70%

90%

100%

14.2%

10.5%

Airport &ground Passenger service,handling Sales & OTH

FuelRental &Depreciation

Labor

Maint.

35.5%

17.4%

14.2%

13.6%

Based on individual financial report

80%

10.0%

11.1%

9.3%

8

Fuel Cost Analysis
Unit

2024Q12023Q1

YoY

Jet fuel(MOPS)USD/BBL

102.4

110.6

-7.4%

Fuel Consumption

10K BBL

377.7

354.7

6.5%

Fuel CostTWD
100 million

130.7

130.3

0.3%

Hedging gain

TWD
100 million

0.040.13-Total fuel cost

TWD
100 million

130.7

130.4

0.2%

Based on individual financial report9Crude Oil and Jet Fuel Price Trends
USD/BBLBrent

Jet Fuel120

108100108

98
91

94

82
8180

23 MAY 24’

77
60

1-Jan-24

1-Feb-24

1-Mar-24

1-Apr-24

1-May-24

10

Financial Risk Management• CAL’s hedging of fuel, exchange rates and interests rates etc., are basedon the decisions made by the Risk Committee of Board of Directors.

•Exchange rates：Natural hedge is applied in order to reduce exposureof currency fluctuation risks.

• Interest rates ： Issue fixed-rate corporate bonds and trade derivative
products such as IRS to reduce interest rate risks.

11Market Outlook

2024 Global Economics Outlook－Slow but Steady• From 2023 to 2024, the global GDP is expected to remain steady at 3.2%
• In 2024, the U.S. GDP is projected to reach as high as 2.7%, serving as a major driver of global growth• China's economic outlook is weakening due to sluggish domestic demand
GDP（%）forecastUSA
2.520232.72024

Japan1.9

ChinaEurope
0.4

0.820232024

5.24.60.92023India
7.8

6.82023ASEAN-5
4.1

4.52024

2023

2023

2024

3.1
1.420232023

3.22024

Taiwan2024

3.220242024※ ASEAN-5： Malaysia, Philippines, Singapore, Thailand※ IMF forecasts Taiwan’s GDP only on April and October

Source：IMF (Apr 2024)

13

Global Passenger Market Overview• In February 2024, driven by the Lunar New Year celebrations, global international passenger traffic for the firsttime exceeded pre-pandemic (2019) levels.
• Due to factors such as aircraft supply and labor shortages, the load factor across various regions for theentirety of 2023 and the beginning of 2024 generally remained higher than in 2019.
International L/F by Regions

Intl. Passenger Market－RPK/ASK/LF

2019

RPK/ASK YOY%
(2019=100%)

L/F %

20%

100%

Load Factor

0%

83%

81%

83%

2021

2022

86%

83%

2023
76%

2024Q1

80%

84%

85%

80%

-20%

60%-40%RPK

40%-60%

2020

2021

2022

JanJul2023

Oct

AprJan

Oct

Jul

20%

AprJanJul

AprJanOct

Jul

AprJanOctJulJan

Apr2019

Oct

ASK-80%-100%

82%

2020

0%

2024

GlobalSource：IATA

Asia PacificEuropeMiddle EastN.A.
14

Forecast for the Recovery of International Passenger Markets by Region
Regional Recovery（RP, 2020-2026）
2020

2019 = 100%

2021

95%

85%
73%

2023

2024

79%

2025

2026

123%
113%
107%

110%
104%
97%

109%

107%
98%

2022

86%

113%
106%
97%

15%
2%

91%

79%

67%

62%

34%

111%
102%

40%
31%

33%
28%

35%
27%

19%

26%28%

9%

8%

TaiwanAsia Pacific

EuropeMiddle East

North America

World

2026

2025

2024

2023

2024

2024

Year to Reach 2019’s Level

Source：Oxford Economics

15

Global Cargo Market Overview• Driven by the booming e-commerce, limited shipping capacity (due to the Red Sea crisis), and diversification of
supply chains, the demand for air freight has shown positive YoY growth since August 2023.
• In January 2024, the Asia-Pacific region reached a peak in cargo volume due to the Lunar New Year, and it isexpected to continue growing, driven by e-commerce.

Regional Cargo Volume Development

Intl. Cargo Market- CTK、ACTK（％YOY）／LF（％）

In Tons(% change YoY)

CTKACTK

Load Factor

2023.12

40%

70%

30%

60%

20%

50%

10%

40%

0%

30%

-10%

20%

-20%

10%

-30%

0%
1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 32022

2023

Source：IATA、DHL

2024

2024.012024.0234

12 14
7 515157 9 630-2-3EuropeMiddle
EastAsia
Pacific-7

North
America

Latin
America16

Passenger Market Overview

Taoyuan airport passenger Demand Continues to Soar
• In Q1 2024, passenger traffic at Taoyuan Airport reached 93% of the levels in 2019
• Since the lifting of travel restrictions in 2022, travel demand has been rising month by month, regardless of the season• It is anticipated that the Dragon Boat Festival and the summer vacation will approach pre-pandemic levels even moreclosely"

Taoyuan Intl. Airport Passenger TTL Vol.
10K500

Taoyuan Airport Daily Average Passenger Vol.

2019-2024.2

2019-2024/3

10K

419
(Mar 19)392(Mar 24)

400

15

10300

13.0

11.6
6.7

200

13.7 13.5 13.9

13.1 13.4

12.2

10.9
10.4 10.7

12.6 12.6
9.2
7.2

13.6 13.9

7.9

10.2

13.3 13.2 13.2 (2019)11.1 11.3 11.5

2022.10

5

2021

2023

Jan

Oct

Jul

AprJan

Jul

2022

Oct

AprJanOct

Jul

AprJanJul2020

Oct

AprJanJul2019

Oct

AprJan02024

Source：Taoyuan Intl. Airport Corp.

0.3

0.3(2023)

8.9

Border Reopen100(2024)

0.3

0.4

0.4

0.7

1.1

1.5

1.6

2.2

5.1(2022)

3.50(2020)(2021)Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

17Cargo Market Outlook---Benefiting from E-commerce Boom, Expected to Grow Quarterly• In Q1 2024, cargo volume was higher compared to the same periods in 2019 and 2023
• Due to a continuous supply of cross-border e-commerce goods after the Lunar New Year in March, andincreased shipments of AI and semiconductor products."
Import/Export/Transshipment vol.
2018 – 2024 (only Q1)

Taoyuan Airport Monthly Cargo Vol.
2019 – 2024/3
Unit：10K tons

Unit：10K tons

26

Mail

Transshipment

24
22

53.8

50.1

49.9

Export

67.0

67.0

32.9
(49.1%)

34.1(51.0%)

17.6

16.7

16.0

15.7

ImportTotal

50.4

52.3

25.4
(50.5%)

27.5(52.6%)

11.7

11.7

12.9

12.8

20
182024 Q1

16+3.7%+4.4%1412

v.s 23 Q1
v.s 19 Q1

101 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1
20192020

2021

2022

2023

2024

Source：Taoyuan Intl. Airport Corp.

25.1(46.6%)

22.3(44.6%)

22.3(44.7%)

13.8

12.6

13.4

14.5

14.8

13.8

2018Q1 2019Q1 2020Q1 2021Q1 2022Q1 2023Q1 2024Q118

Delivery Delays, Capacity Constrained• Based on previous aircraft delivery cycles, the peak annual delivery volume from 2020
to 2023 should have reached approximately 1,800 aircraft per year.
• Due to post-pandemic supply chain disruptions, the global aviation industry is facing
delivery delays, with a shortfall of approximately 3,500 to 4,000 aircraft.

Boeing + Airbus Annual Deliveries（2016-2024）

1800
1600
1400

1200
1000
800600400200020162017

2018

2019

2020

2021

2022

Source：Airbus、Boeing、CAPA、Forecast International

2023

2024F

19Passenger Market,
Performance & Strategies

2024 Q1 Passenger Operational Results
2024Q12023Q12024Q1 vs2023Q1

Passenger
revenue

27.9

21.1

+32.1%

Revenuepassenger

2,945

1,877

+56.1%

Available
Seat Kilometer

11.8

9.5

+24.8%

Averageload factor (%)

79.5

74

+5.5 ppt(NT $billion )(‘000)(ASK)(billion)

Passenger
yield (NT$/RPK)

2.96

3.00

-1.5%

2024Q1 Passenger Revenue
Sources by Region
Hong
Kong, 4%
Northeast
Asia, 32%TransPacific,
21%

Southeast
Asia, 19%

Oceania,8%Europe,China, 6%
10%

Based on individual financial report

21SOURCE：本公司整理

Capacity (AS) Reached 80% & Revenue up to 119% of
pre-COVID19
Long-Haul

S.E. Asia

AS：90%~116%

AS：90%（PAX revenue：138%~178%）

China &Hong Kong

AS up to 80%
Revenue up to 119%in 2024Q1

AS：52%~61%（PAX revenue：52%~68%）※ 2024Q1 vs.. 2019Q1(AS & Revenue)（PAX revenue：116%）

Japan、Korea
AS：80%（PAX revenue：114%）

22Passenger Operation Strategy
Continuous Innovation

Steady Development•

Take advantage of Taiwan’sgeographic position as a transit hub.

•Develop bilateral tourism by integrating
local resources.

•

Strengthen cooperation between
partner airlines.

•

Develop diversified and global businesscustomers.

•

Cultivate new generation customers.

•

Flexibly passenger schedule flights tomaximize capacity.

••
•
•
•

•

Provide a unique journey to passengers
with enhanced digitalized customer
service.
Upgrade member system.
Enhance official website and app
function.
Enhance product value by crossindustry collaboration.
Improving the ticket purchasing
experience by optimizing the officialwebsite.
Incorporate ESG and promote green
Economy.
23

Cargo Market,Performance & Strategies

2024 Q1 Cargo Operational Results
2024Q1vs 2023Q1

vs 2019Q1

Cargorevenue

12.3-21.6%+21.6%

Carried tons(‘000)

166

-9.8%

-8.3%

Available
Freight
Ton Kilometer(AFTK)(billion)

1.82

-6.6%

-0.5%

(NT $billion )Averageload factor(%)

Cargo yield
(NT$)

67.5

-0.7ppt

+2ppt

9.98

-15.1%+18.6%

Based on individual financial report

2024Q1 Cargo Revenue
Sources by Region

North East
Asia, 5%Hong
Oceanic, Kong, 4%
2%

China, 6%South East,11%Europe,12%North
America,60%

25

Cargo Market Share Performance in 2024Q1
CI's Cargo Market Share in Taiwan
Market in 2024Q1•

In 2024Q1, China Airlines maintained theleading market share from 2023 across all

60.0%
51.2%

cargo segments, including export, import,
transfer, and direct transfer in Taiwan.

40.0%

40.0%
30.7%

26.0%

•20.0%

China Airlines' transfer market share in theTaiwan market is as high as 51.2%, which

fully reflects its important role as an Asia0.0%

ExportImportTransfer

Direct Transfer

Source: Warehouse statistics

Pacific transshipment center.

26

Global Market Outlook• 2024H2, the global freight market will maintain stable growth, and demand is estimated to be better than 2024H1• Global e-commerce will continue to see a growth in the near future• The industrial supply chain inventory continues to be depleted, and the forecasts for the prospects of related
indicator industries are positive

Global E-Commerce Sales

Growth Rate
YoY%

Load Factor(%)

International Air Cargo Market

35%

80%

20%

60%

5%
40%
-10%
20%

-25%
-40%

2019

0%

2020
FRTK YoY (%)

2021

2022

FATK YoY (%)

2023

2024Load Factor (%)

Source： Boeing Market Update (2023), IATA Air Cargo Market Analysis (Monthly Report)

27

Cargo Operation Strategy
Optimize Network and Strengthen Revenue Management•

Introduce the new 777F freighter.

•Focus on the cross-border e-commerce and AI-related semiconductor markets, andoptimize the cargo network accordingly.
•Pursue medium- and long-term customized services and chartered flights.

•Pursue high-yield sources of goods, such as semiconductors and cool chain products.

•Collaborate with integrators and other interline partners to expand the CI network.

28Fleet Development

Fleet Development
Aircraft Type2024.Q1

End of 2024

Remark

777-300ER

1010787-9002025 Commencing Introduction

A350-900

1515One Extra Lease

A330-300

1816Revert Aircraft to Lessor、Extend Short Leases

737-800

1010

Extend Short Leases

A321neo1115Continue to Introduce

Passenger

6466744F

138Phase out

777F

710Continue to Introduce

Freighter

2018Total

848430Sustainability Actions and Achievements

Carbon Reduction Target/Strategy• CAL continues to execute fleet renewal, introduce fuel-saving
technologies/sustainable fuels, improve passenger/cargo loadfactors, optimize routes and air traffic management operations,
reduce fuel consumption and carbon emissions intensity, andlower operational and regulatory compliance costs.
• CAL has developed short, medium, and long-term carbon
reduction targets for flight and ground operations as well as theusage targets of SAF(Sustainable Aviation Fuel) and groundrenewable energy installation capacity targets, to achieve GHG
reduction and reach net zero carbon emissions by 2050 .

*** It is not the proportion of electricity use. Rather, it is an additional target beside the Taiwan national power grid target .

32Thank you