SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549   FORM 20-F/A (Amendment No. 1)    ☐
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR  ☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR  ☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  ☐
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-14550   中国东方航空股份有限公司 (Exact Name of Registrant as Specified in Its Charter)    China Eastern Airlines Corporation Limited

The Peoples Republic of China(Translation of Registrants Name Into English)

(Jurisdiction of Incorporation or Organization) 5/F, Block A2, Northern District, CEA Building 36 Hongxiang 3rd Road, Minhang District, Shanghai Peoples Republic of China Tel: (8621) 6268-6268 Fax: (8621) 6268-6116 (Address and Contact Details of the Board Secretariats Office) Securities registered or to be registered pursuant to Section 12(b) of the Act:  Title of Each Class

Trading Symbol

Name of Each Exchange on which
RegisteredAmerican Depositary Shares
Ordinary H Shares, par value RMB1.00 per share

CEA

The New York Stock Exchange
The New York Stock Exchange*  (1)
Not for trading, but only in connection with the registration of American Depositary Shares. The Ordinary H
Shares are also listed and traded on The Stock Exchange of Hong Kong Limited. Securities registered or to be
registered pursuant to Section 12(g) of the Act: None (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None (Title of Class) Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the
period covered by the annual report. As of December 31, 2020, 11,202,731,426 Ordinary Domestic Shares, par value RMB1.00 per share,
were issued and outstanding, and 5,176,777,777 Ordinary H Shares par value RMB1.00 per share, were issued and outstanding. H Shares are Ordinary Shares of the Company listed on The Stock Exchange of Hong Kong Limited. Each American Depositary Share
represents 50 Ordinary H Shares. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act.    Yes  ☐    No  ☒ If this report is an annual or
transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
..    Yes  ☐    No  ☒ Indicate by check mark whether the
registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to suchfiling requirements for the past 90 days.    Yes  ☒    No  ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to
Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such
files).    Yes  ☒    No  ☐ Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of large accelerated filer, accelerated filer and
emerging growth company in Rule 12b-2 of the Exchange Act.  Large Accelerated Filer  ☒

Accelerated Filer  ☐

Non-Accelerated Filer  ☐

Emerging Growth Company  ☐ If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by
check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act.  ☐ The term new or revised financial accounting standard refers to any update issued by the Financial Accounting Standards Board to
its Accounting Standards Codification after April 5, 2012. Indicate by check mark whether the registrant has filed a report on and
attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.  ☒ Indicate by check mark which basis of accounting the registrant has used to prepare the
financial statements included in this filing:  U.S. GAAP  ☐

International Financial Reporting Standards as issued
by the International Accounting Standards Board  ☒


Other
☐ If Other has been checked in response to the previous question, indicate by check mark which
financial statement item the registrant has elected to follow. Item 17  ☐    Item
18  ☐ If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒




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EXPLANATORY NOTE This Amendment No. 1 on Form 20-F/A (this Amendment) amends the Annual Report on Form 20-F of China Eastern Airlines Corporation Limited. (the Company, , we, and our) for the year ended December 31, 2020, which was originally filed with the Securities and
Exchange Commission on April 28, 2021 (the Original Filing). The Company is filing this Amendment solely for the purpose
of updating the disclosure in respect of climate change and related matters in Item 3 and Item 4 of Part I. In addition, pursuant to Rule 12b-15 under the Exchange Act, the Company is including Item 19 of Part III with this
Amendment solely to file the certifications required under the Sarbanes-Oxley Act of 2002. Except as described above or as otherwise
expressly provided by the terms of this Amendment, no other changes have been made to the Original Filing. Except as otherwise indicated herein, this Amendment continues to speak as of the date of the Original Filing, and the Company has not updated
the disclosures contained therein to reflect any events that occurred subsequent to the date of the Original Filing.




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Item 3. Key Information  A.
Selected Financial Data Pursuant to U.S. Securities and Exchange Commission (SEC or Securities and Exchange Commission) Release 33-8879  Acceptance from Foreign Private Issuers of Financial Statements Prepared in Accordance with International Financial Reporting Standards without Reconciliation to U.S. GAAP
eliminating the requirement for foreign private issuers to reconcile their financial statements to U.S. GAAP, we prepare our financialstatements based on International Financial Reporting Standards, or IFRSs, as issued by the International
Accounting Standards Board, or the IASB, and no longer provide a reconciliation between IFRSs and U.S. GAAP. Our consolidated financial
statements as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 included in this Annual Report on Form 20-F have been prepared in accordance with IFRSs. We make an explicit and unreserved statement of compliance with IFRSs with respect to our consolidated financial statements as
of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 included in this Annual Report. Ernst & Young Hua Ming LLP, our current independent registered public accounting firm in the PRC, has issued an
unqualified auditors report on our consolidated statements of financial position as of December 31, 2019 and 2020 and the related consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows
for the years ended December 31, 2018, 2019 and 2020. The selected financial data from the consolidated profit or loss and other comprehensive income for the year ended December 31, 2017 and the selected financial data from the
consolidated financial position as of December 31, 2017 and 2018 have been derived from our audited consolidated financial statements, which have been prepared in accordance with IFRSs, and audited by Ernst & Young Hua Ming LLP. The
selected financial data from the consolidated profit or loss and other comprehensive income for the year ended December 31, 2016 and the selected financial data from the consolidated financial position as of December 31, 2016 have been
derived from our audited consolidated financial statements, which have been prepared in accordance with IFRSs, and audited by Ernst & Young, an independent registered public accounting firm in Hong Kong. The following tables present selected consolidated profit or loss and comprehensive income data for the years ended December 31, 2016,
2017, 2018, 2019 and 2020 and selected consolidated statements of financial position data as of December 31, 2016, 2017, 2018, 2019 and 2020 that were prepared under IFRSs. The selected financial information as of December 31, 2019 and
2020 and for the years ended December 31, 2018, 2019 and 2020 has been derived from, and should be read in conjunction with, the audited consolidated financial statements and their notes included elsewhere in this Annual Report. We initially
applied IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers on January 1, 2018 and IFRS 16 Leases on January 1, 2019 and elected not to reflect the figures on a retrospective basis in
comparative periods.  Year Ended December 31,2016


2017


2018


2019


2020RMB


RMB


RMB


RMB


RMB(in RMB millions, except per share or per ADS data)Consolidated Statements of Profit or Loss and Other Comprehensive Income Data:Revenues


98,904



102,475



115,278



120,986



58,727Other operating income and gains


5,469



7,481



6,592



7,202



5,698Operating expenses(1)


(91,887
)


(100,525
)


(112,561
)


(118,107
)


(78,265
)Operating profit /(loss)


12,486



9,431



9,309



10,081



(13,840
)Finance costs, net


(6,176
)


(1,072
)


(5,657
)


(6,064
)


(2,553
)Profit /(loss) before income tax


6,497



8,610



3,856



4,299



(16,488
)Profit /(loss) for the year attributable to the equity holders of the Company


4,498



6,342



2,698



3,192



(11,836
)Basic and fully diluted earnings /(loss) per share
(2)


0.33



0.44



0.19



0.21



(0.72
)Basic and fully diluted earnings /(loss) per ADS


16.5



22.0



9.5



10.5



(36
)  1




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Notes:  (1)
Including gain on fair value changes of derivative financial instruments of RMB2 million,
RMB311 million, nil and nil for the years ended December 31, 2016, 2018, 2019 and 2020, respectively, and loss on fair value changes of derivative financial instruments of RMB311 million for the year ended December 31, 2017. (2)
The calculation of earnings per share for 2016 is based on the net profit attributable to the equity holders of
the Company divided by the weighted average number of 13,811,136,000 ordinary shares in issue. The calculation of earnings per share for 2017 is based on the net profit attributable to the equity holders of the Company divided by the weighted
average number of 14,467,585,682 ordinary shares in issue. The calculation of earnings per share for 2018 is based on the net profit attributable to the equity holders of the Company divided by the weighted average number of 14,467,585,682 ordinary
shares in issue. The calculation of earnings per share for 2019 is based on the net profit attributable to the equity holders of the Company divided by the weighted average number of 15,104,893,522 ordinary shares in issue. The calculation of loss
per share for 2020 is based on the loss attributable to the equity holders of the Company divided by the weighted average number of 16,379,509,203 ordinary shares in issue.  As of December 31,2016


2017


2018


2019


2020RMB


RMB


RMB


RMB


RMB(in RMB millions)Consolidated Statements of Financial Position Data:Cash and cash equivalents


1,695



4,605



646



1,350



7,651Net current liabilities


(52,194
)


(62,035
)


(57,132
)


(58,620
)


(77,310
)Non-current assets


196,436



211,434



223,085



265,442



262,152Long term borrowings, including current portion


(29,749
)


(28,842
)


(32,506
)


(31,137
)


(39,429
)Lease liabilities, including current portion














(110,275
)


(96,251
)Obligations under finance leases, including current portion


(61,041
)


(66,868
)


(77,427
)






Total share capital and reserves attributable to the equity holders of the Company


49,450



55,360



58,008



69,008



56,249Non-current liabilities


(91,876
)


(90,621
)


(104,352
)


(134,176
)


125,688Total assets less current liabilities


144,242



149,399



165,953



206,822



184,842Total assets


212,324



229,727



239,017



285,185



284,650Net assets


52,366



58,778



61,601



72,646



59,154 Selected Operating Data The following table sets forth certain of our operating data for the five years ended December 31, 2020, which is not audited. All
references in this Annual Report to our cargo operations, statistics or revenues include figures for cargo and mail.  Year Ended December 31,2016


2016


2017


2017


2018


2019


2020(non-comparable
basis) (1)


(comparable
basis)(2)


(non-comparable
basis) (3)


(comparable
basis) (4)Selected Airline Operating Data:Capacity:ATK (millions)


28,002.3



25,097.6



27,396.9



27,136.6



29,936.5



33,455.6



20,632.5ASK (millions)


206,249.3







225,996.3







244,841.0



270,254.0



152,066.4AFTK (millions)


9,439.9



6,535.2



7,057.3



6,797.0



7,900.8



9,132.7



6,946.5Traffic:Revenue passenger-kilometers (millions)


167,529.2







183,182.0







201,486.0



221,779.1



107,273.3Revenue tonne-kilometers (millions)


19,712.9



17,333.1



18,856.1



18,651.3



20,358.4



22,518.0



11,699.7Revenue freight tonne-kilometers (millions)


4,875.2



2,495.4



2,663.0



2,458.2



2,588.3



2,971.4



2,200.1Hours flown (thousands)


1,956.5



1,918.8



2,072.7



2,069.3



2,206.0



2,394.0



1,547.6Number of passengers carried (thousands)


101,741.6







110,811.4







121,199.7



130,297.4



74,621.2Weight of cargo carried (millions of kilograms)


1,395.0



929.3



933.3



894.3



915.1



976.6



711.8Load Factor:Overall load factor (%)


70.4



69.1



68.8



68.7



68.0



67.3



56.7Passenger load factor (%)


81.2







81.1







82.3



82.1



70.5Yield and Cost Statistics (including fuel surcharge) (RMB):Passenger yield (passenger revenue/ passenger- kilometers)


0.52







0.52







0.54



0.52



0.49Cargo and mail yield (cargo and mail revenue/cargo and mail tonne-kilometers)


1.25



1.25



1.36



1.36



1.40



1.29



2.23Average yield (passenger and cargo revenue/ tonne-kilometers)


4.71



5.18



5.25



5.30



5.53



5.32



4.94Unit cost (operating expenses/ATK)


3.28



3.66



3.67



4.15



3.76



3.53



3.79  2




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Notes:  (1)
On November 29, 2016, we entered into an equity transfer agreement with Eastern Airlines Industry
Investment Company Limited (Eastern Airlines Industry Investment), in relation to the transfer of 100% equity interests in Eastern Airlines Logistics Co., Ltd. (Eastern Logistics) held by us to Eastern Airlines Industry
Investment. China Cargo Airlines Co., Ltd (China Cargo Airlines), a non-wholly owned subsidiary of Eastern Logistics, operated nine freighters then. On February 8, 2017, we completed the
transfer of 100% equity interest in Eastern Logistics to Eastern Airlines Industry Investment and the nine freighters operated by China Cargo Airlines ceased to be included in our fleet. Under non-comparable
basis, our operating data in 2016 included our whole cargo freight data during the period from February to December 2016. (2)
Under comparable basis, our operating data in 2016 did not include our whole cargo freight data during the
period from February to December 2016. (3)
Under non-comparable basis, the operating data in 2017 included our
whole cargo freight data in January 2017. (4)
Under comparable basis, the operating data in 2017 did not include our whole cargo freight data in January
2017.  B.
Capitalization and Indebtedness Not applicable.  C.
Reasons for the Offer and Use of Proceeds Not applicable.  D.
Risk Factors Risks Relating to our Business The COVID-19 pandemic and measures to reduce its spread have had, and will likely continue to have, a material adverse impact on our business, results of operations and financial condition. The outbreak of the COVID-19 pandemic and implementation of measures to reduce its spread have
adversely impacted our business and continue to adversely impact our business in a number of ways. Multiple countries have responded to the virus with air travel restrictions and closures, testing requirements or recommendations against air travel.
We experiencd a significant decline in domestic and international demand due to the decreased willingness to travel and the implementation of the Five-One policy for international flights by the
Civil Aviation Administration. For the year ended December 31, 2020, our total ASK, total number of passengers carried and passenger load factor decreased by 43.7%, 42.7% and 11.5 percentage points, respectively, as compared to the same period
of 2019. The decline in demand caused a material deterioration in our revenues in 2020, resulting in a net loss attributable to shareholders of RMB11.8 billion. The extent of the impact of the COVID-19 pandemic on our business, results of operations and financial
condition will depend on future developments, including the currently unknowable duration of the COVID-19 pandemic; the efficacy of, ability to administer and extent of adoption of any COVID-19 vaccines domestically and globally; the impact of existing and future governmental regulations, travel restrictions that are imposed in response to the pandemic and the impact of the COVID-19 pandemic on consumer behavior, such as a reduction in the demand for air travel. The total potential economic impact brought on by the COVID-19 pandemic is difficult
to assess or predict, and it has already caused, and is likely to result in further, significant disruptions to global financial markets, which may reduce our ability to access capital on favorable terms or at all, and increase the cost of capital. In addition, a recession, depression or other sustained adverse economic event resulting from the spread of the coronavirus would
materially adversely impact our business and our medium- and long-term financial condition and operations. Unfavorable economic conditions have driven changes in travel patterns, including reduced spending for both leisure and business travel.
Unfavorable economic conditions, when low fares are often used to stimulate traffic, have also historically hampered the ability of airlines to raise fares to counteract any increases in fuel, labor, and other costs. Recent developments with respect to the COVID-19 vaccines have the potential to affect the scope and
duration of the pandemic. While a number of the COVID-19 vaccines have received regulatory approval and are available in the PRC and other parts of the world, a degree of uncertainty exists with respect to the
distribution, utilization, and long-term efficacy of vaccinations among the general population. The impact of the COVID-19 vaccines on the pandemic, demand for air travel, and our business remain unknown. Even
once the pandemic and fears of travel subside, demand for air travel may remain weak for a significant period of time. In particular, consumer behavior related to traveling may be negatively impacted by adverse changes in the perceived or actual
economic climate, including higher unemployment rates, declines in income levels, and loss of wealth resulting from the impact of the COVID-19 pandemic. The ultimate impact of the COVID-19 pandemic is still highly uncertain and subject to change. Moreover, any other adverse public health developments, including SARS, Ebola, Avian Flu or Influenza A (H1N1), the
COVID-19 pandemic, and the occurrence of natural disasters may, among other things, also lead to travel restrictions and reduced levels of economic activity in the affected areas, which may in turn
significantly reduce demand for our services and have a material adverse effect on our financial condition and results of operations.  3




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We may suffer losses in the event of an accident or incident involving our aircraft or
the aircraft of any other airline. As an airline company operating a large fleet, an accident or incident involving one of our
aircraft could result in delays and require repair or replacement of a damaged aircraft, which could result in consequential temporary or permanent losses from disruption of service and/or significant liability to injured passengers and others.
Unforeseeable or unpredictable events such as inclement weather, mechanical failures, human error, aircraft defects and other force majeure events may affect flight safety, which could result in accidents and/or incidents of passenger injuries or
deaths that could lead to significant injury and loss claims. Although we believe that we currently maintain liability insurance in amounts and of the types generally consistent with industry practice, the amount of such coverage may not be adequate
to cover the costs related to an accident or incident in full, which could damage our results of operations and financial condition. In addition, any aircraft accident or incident, even if fully insured, could cause a public perception that we are
not as safe or reliable as other airlines, which could harm our competitive position and result in a decrease in our operating revenues. Moreover, a major accident or incident involving an aircraft of our competitors may cause the demand for air
travel in general to decrease. In particular, certain of our competitors in the Asia Pacific region experienced major aircraft accidents and incidents in 2014, some of which involved destinations and routes that we cover. Also, there were accidents
and incidents involving other airline companies and aircraft manufacturers in recent years. These accidents and incidents were highly publicized in the media and may have affected public perception of certain air travel routes, airline companies and
aircraft manufacturers. The occurrence of any of the foregoing could adversely affect our results of operations and financial condition. Our indebtedness and other financial obligations may have a material adverse effect on our liquidity and operations. We have a substantial amount of debt, lease and other financial obligations, and will continue to do so in the future. As of December 31,
2020, our total liabilities were approximately RMB225,496 million and our current liabilities exceeded our current assets by approximately RMB77,310 million. Our total interest-bearing liabilities (including long-term and short-term bank
borrowings, lease liabilities, bonds payable and super short-term debentures) as of December 31, 2019 and 2020 were approximately RMB162,147 million and RMB184,168 million, respectively, of which interest-bearing current liabilities
accounted for approximately 25.2% and 38.7%, respectively. Our substantial indebtedness and other financial obligations could materially and adversely affect our business and operations, including being required to dedicate additional cash flow from
operations to the payment of principal and interest on our indebtedness, thereby reducing the funds available for operations, maintenance and service improvements and future business opportunities, increasing our vulnerability to economic
recessions, reducing our flexibility in responding to changing business and economic conditions, placing us at a disadvantage compared to competitors with lower debt, limiting our ability to arrange for additional financing for working capital,
capital expenditures and other general corporate purposes, at all or on terms that are acceptable to us. Moreover, we are largely
dependent upon cash flows generated from our operations and external financing to meet our debt repayment obligations and working capital requirements, which may reduce the funds available for other business purposes.However, the
widespread and continuous COVID-19 pandemic has materially decreased passenger demand, thereby adversely affecting operating income and cash flows from operations. In 2020, the passenger traffic (as measured
in RPKs) was 107,273 million passenger-kilometres, representing a decrease of 51.6% from 2019. In 2020, our passenger revenue amounted to RMB49,215 million, representing a decrease of 55.4% from 2019. If our operating cash flow is under
continous adverse impact of factors such as increased competition, a significant decrease in demand for our services resulting from worldwide epidemic such as the COVID-19 pandemic as well as a significant
increase in jet fuel prices, our liquidity would be materially and adversely affected. We also try to secure sufficient financing through financing arrangements with domestic and foreign banks in China as well as from debt and equity capital
markets. In 2020, we actively expanded financing channels, and issued a total of RMB77.2 billion of super short-term debentures and RMB2 billion of corporate bonds to ensure that the cash flow can meet our operation needs. However, our
ability to obtain financing may be affected by our financial position and leverage, our credit rating and investor perception of the aviation industry, as well as prevailing economic conditions and the cost of financing in general. If we are unable
to obtain adequate financing for our capital requirements, our liquidity and operations would be materially and adversely affected. In
addition, the airline industry overall is characterized by a high degree of operating leverage. Due to high fixed costs, including payments made in connection with aircraft leases, and landing and infrastructure fees which are set by government
authorities and not within our control, the expenses relating to flight operations do not vary proportionately with the number of passengers carried, while revenues generated from a particular flight are directly related to the number of passengers
carried and the fare structure of the flight. Accordingly, a decrease in revenues may result in a disproportionately higher decrease in profits.  4




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We may not be able to secure future financing at terms acceptable to us or at all. We require significant amounts of external financing to meet our capital commitments for acquiring and upgrading aircraft and
flight equipment and for other general corporate needs. As of December 31, 2020, we had total unutilized credit facilities of approximately RMB33.7 billion from various banks. We expect to roll over these bank facilities in the near
future. In addition, we generally acquire aircraft through either long-term capital leases or operating leases. In the past, we have obtained guarantees from Chinese banks in respect of payments under our foreign loan and capital lease obligations.
However, we cannot assure you that we will be able to roll over our bank facilities or continue to obtain bank guarantees in the future. Unavailability of credit facilities or guarantees from Chinese banks or the increased cost of such guarantees
may materially and adversely affect our ability to borrow additional funds or enter into international aircraft lease financing or other additional financing on acceptable terms. In addition, if we are not able to arrange financing for our aircraft
on order, we may seek to defer aircraft deliveries or use cash from operations or other sources to acquire the aircraft. Our ability to obtain financing may also be impaired by our financial position, leverage and credit rating. In addition, factors beyond our
control, such as recent global market and economic conditions, volatile oil prices, and the tightening of credit markets may result in limited availability of financing and increased volatility in credit and equity markets, which may materially and
adversely affect our ability to secure financing at reasonable costs or at all. If we are unable to obtain financing for a significant portion of our capital requirements, our ability to expand our operations, purchase new aircraft, pursue business
opportunities we believe to be desirable, withstand any future downturn in our business, or respond to increased competition or changing economic conditions may be impaired. We have and in the future will likely continue to have substantial debts.
As a result, the interest costs associated with these debts might impair our future profitability. We are subject to the risk of
fuel price fluctuations. Jet fuel is one of the major expenses of airlines. Significant fluctuations of international oil prices
will significantly impact jet fuel prices and our revenue from fuel surcharge and accordingly our results of operations. In 2020, our total aircraft fuel cost was approximately RMB13,840 million, representing a decrease of approximately 59.5%
from approximately RMB34,191 million in 2019. The decrease was due to a decline in our fuel consumption by 38.5% and a drop in the average price of fuel by 34.2% from last year, both of which are attributable to the impact of the COVID-19 pandemic. In 2020, our total jet fuel cost accounted for approximately 17.7% of our total operating expenses, as compared to approximately 28.9% in 2019. As affected by the
COVID-19 pandemic, there remains great uncertainty on our fuel consumption in 2021, and hence, there also remains great uncertainty on the expected jet fuel costs. The fluctuations of international crude oil prices and adjustments on domestic jet fuel prices by the National Development and Reform
Commission (the NDRC) have a significant impact on our profitability. Aircraft fuel prices have been subject to high volatility, fluctuating substantially over the past several years. Our results of operation and financial condition are
affected by any significant fluctuations that may occur, which are generally due to factors beyond our control. As such, we generally alleviate the pressure from the rise in operating costs arising from the increase in aviation fuel by imposing fuel
surcharges, which, however, are subject to government regulations. In order to control fuel costs, we have also entered into fuel hedging transactions using financial derivative products linked to the price of underlying assets such as United States
WTI crude oil and Singapore jet fuel during previous years.In 2020, we used jet fuel forward contracts to deal with the cash flow risks arising from fluctuation of jet fuel prices. The jet fuel forward contracts entered into by us are
mainly based on the purchase of jet fuel at a fixed transaction price, and are cash flow hedges. As of December 31, 2020, the notional amount of the outstanding jet fuel forward contracts held by us was approximately US$252 million, and
will expire between 2021 and 2022. As of December 31, 2019, the notional amount of the outstanding jet fuel forward contracts held by us was nil. Since 2009, the PRC government required prior governmental approval for entering into fuel forward contracts. We may, from time to time, seek
approval from the PRC government to enter into overseas fuel forward contracts. However, these hedging strategies may not always be effective and high fluctuations in aviation fuel prices exceeding the
locked-in price ranges may result in losses. Significant decline in fuel prices may substantially increase the costs associated with such fuel hedging arrangements. In addition, where we may, from time to
time, seek to manage the risk of fuel price increases by using derivative contracts, we cannot assure you that, at any given point in time, such fuel hedging transactions will provide any particular level of protection against increased fuel costs.  5




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We are subject to the risk of exchange rate fluctuations. We operate our business in many countries and territories. We generate revenue in different currencies, and our foreign currency liabilities
are typically much higher than our foreign currency assets. Our purchases and leases of aircraft are mainly priced and settled in foreign currencies such as U.S. dollars. Fluctuations in exchange rates will affect our costs incurred from foreign
purchases such as aircraft, flight equipment and aviation fuel, and take-off and landing charges in foreign airports. As of December 31, 2020, our total interest-bearing liabilities denominated in foreign
currencies amounted to approximately RMB47,364 million, of which U.S. dollar interest-bearing liabilities accounted for approximately 77.4%. Therefore, a significant fluctuation in exchange rates will subject us to significant foreign exchange
loss/gain arising from the exchange of foreign currency denominated liabilities, which would affect our profitability and business development. We typically use hedging contracts for foreign currencies to reduce the foreign exchange risks for
foreign currency revenues generated from flight ticket sales and expenses required to be paid in foreign currencies. As of December 31, 2019, the outstanding forward foreign currency contracts held by us amounted to a notional amount of
approximately US$776 million. As of December 31, 2020, our forward foreign currency contracts have all expired, and there are no outstanding forward foreign currency contracts. We recorded net foreign exchange losses of approximately RMB990 million in 2019 and net foreign exchange gains of approximately
RMB2,494 million in 2020. However, as a result of the large value of existing net foreign currency liabilities denominated in U.S. dollars, our results would be adversely affected if the Renminbi depreciates against the U.S. dollar or the rate
of appreciation of the Renminbi against the U.S. dollar decreases in the future. In 2017 and the first quarter of 2018, we expanded our financing channels by issuing guaranteed bonds and credit enhanced bonds denominated in SGD and JPY, and
proactively optimized the mix of currency denomination of our debts. In 2019, we expanded our financing channels by means of issuing super short-term debentures and acquiring RMB borrowings to bring in RMB financing, continuing to optimize the mix
of currency denomination of our debts. As of December 31, 2020, our proportion of U.S. dollar-denominated interest-bearing debts out of our total interest-bearing liabilities decreased to approximately 19.9% from 28.7% as of December 31,
2019. Our foreign exchange fluctuation risks are also subject to other factors beyond our control. We are subject to the risk of
interest rate fluctuations. Our total interest-bearing liabilities (including long-term and short-term bank borrowings, lease
liabilities, bonds payable and super short-term debentures) as of December 31, 2019 and 2020 were approximately RMB162,147 million and RMB184,168 million, respectively, of which short-term interest-bearing liabilities accounted for
approximately 25.2% and 38.7%, respectively, and long-term interest-bearing liabilities accounted for approximately 74.8% and 61.3%, respectively. Both the short-term and long-term interest-bearing liabilities were affected by fluctuations in
current market interest rates. Our interest-bearing liabilities were primarily denominated in RMB and USD. As of December 31, 2019
and December 31, 2020, our interest-bearing liabilities denominated in RMB accounted for approximately 64.0% and 74.3% % of our total interest-bearing liabilities, respectively, and interest-bearing liabilities denominated in USD accounted for
approximately 28.7% and 19.9% of our total interest-bearing liabilities, respectively. Fluctuations in interest rates of interest-bearing liabilities denominated in these two currencies have and will continue to have significant impact on our
finance costs. As of December 31, 2020, the weighted average interest rates of our RMB-denominated interest-bearing liabilities, USD-denominated interest-bearing
liabilities, EUR-denominated interest-bearing liabilities, SGD-denominated interest-bearing liabilities, KRW-denominated
interest-bearing liabilities and JPY-denominated interest-bearing liabilities were approximately 3.08%, 2.97%,0.11%, 1.22%, 2.41% and 0.66%, respectively. In the first quarter of 2018, we also issued credit
enhanced bonds denominated in JPY with total principal of JPY50.0 billion due in 2021, bearing fixed interest at the rate of 0.33% per annum and 0.64% per annum for different tranches. To cope with the risk of interest rate fluctuation, we
strategically changed our debt portfolio by replacing our USD-denominated liabilities with floating interest rates with USD-denominated liabilities with fixed interest
rates. As of December 31, 2020, our USD-denominated interest-bearing liabilities with fixed interest rate was approximately US$3,699 million and accounted for approximately 77.6% of our total
long-term interest-bearing USD-denominated liabilities, increasing by approximately 68.0% as of December 31, 2019. As of December 31, 2020, our outstanding interest rate swap contracts amounted to a
notional principal amount of US$690 million as compared to US$888 million as of December 31, 2019. These contracts will expire between the duration of 2021 to 2025. We will continue to optimize our liability structure to lower
relevant risks by taking consideration of various factors including the market environment, interest rates and strategic plan. However, we cannot assure you that the relevant lending rates may not increase in the future for reasons beyond our
control, which may adversely affect our business, prospects, cash flows, financial condition and results of operations. In addition, we expect to issue bonds and notes or enter into additional loan agreements and aircraft leases in the future to
fund our operations and capital expenditures, and the cost of financing for these obligations will depend greatly on market interest rates.  6




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Increases in insurance costs or reductions in insurance coverage may have adverse
impact our results of operations and financial condition. We could be exposed to significant liability or loss if our property or
operations were to be affected by a natural catastrophe or other event, including aircraft accidents. We maintain insurance policies but we are not fully insured against all potential hazards and risks incident to our business. If we are unable to
obtain sufficient insurance with acceptable terms or if the coverage obtained is insufficient relative to actual liability or losses that we experience, whether due to insurance market conditions, policy limitations and exclusions or otherwise, our
results of operations and financial condition could be adversely affected. We may experience difficulty integrating our
acquisitions, which could result in a material adverse effect on our operations and financial condition. We may from time to time
expand our business through acquisition of airlines or airline-related businesses. We may devote significant resources to the integration of our operations in order to achieve the anticipated synergies and benefits of the absorption and acquisitions
mentioned above. See Item 4. Information on the Company for details. However, such acquisitions involve uncertainties and a number of risks, including:  

difficulty with integrating the assets, operations and technologies of the acquired airlines or airline-related
businesses, including their employees, corporate cultures, managerial systems, processes, procedures and management information systems and services;  

complying with the laws, regulations and policies that are applicable to the acquired businesses;  

failure to achieve the anticipated synergies, cost savings or revenue-enhancing opportunities resulting from the
acquisition of such airlines or airline-related businesses;  

managing relationships with employees, customers and business partners during the course of integration of new
businesses;  

attracting, training and motivating members of our management and workforce;  

accessing our debt, equity or other capital resources to fund acquisitions, which may divert financial resources
otherwise available for other purposes;  

diverting significant management attention and resources from our other businesses;  

strengthening our operational, financial and management controls, particularly those of our newly acquired assets
and subsidiaries, to maintain the reliability of our reporting processes;  

difficulty with exercising control and supervision over the newly acquired operations, including failure to
implement and communicate our safety management procedures resulting in additional safety hazards and risks;  

increased financial pressure resulting from the assumption of recorded and unrecorded liabilities of the acquired
airlines or airline-related businesses; and  

the risk that any such acquisitions may not close due to failure to obtain the required government approvals. We cannot assure you that we will not have difficulties in assimilating the operations, technologies, services and
products of newly acquired companies or businesses. Moreover, the continued integration of our acquired companies into our Company depends significantly on integrating the employees of our acquired companies with our employees and on maintaining
productive employee relations. In the event that we are unable to efficiently and effectively integrate newly acquired companies or airline-related businesses into our Company, we may be unable to achieve the objectives or anticipated synergies of
such acquisitions and such acquisitions may adversely impact the operations and financial results of our existing businesses. We
may be unable to retain key management personnel or pilots. We are dependent on the experience and industry knowledge of our key
management personnel and pilots, and there can be no assurance that we will be able to retain them. Any inability to retain our key management employees or pilots, or attract and retain additional qualified management employees or pilots, could have
a negative impact on our operations and profitability.  7




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Our controlling shareholder, CEA Holding, holds a majority interest in our Company,
and its interests may not be aligned with other shareholders. Most of the major airlines in China are currently majority-owned by
either the central government or provincial or municipal governments in China. As of December 31, 2020, CEA Holding holds directly or indirectly 49.79% of our Companys equity stake on behalf of the PRC government. As a result, CEA Holding
could potentially elect the majority of the board of directors of the Company (Board of Directors or the Board) and otherwise be able to control us. CEA Holding also has sufficient voting control to effect transactions
without the concurrence of our minority shareholders. The interests of the PRC government as the ultimate controlling shareholder of our Company and most of the other major PRC airlines could conflict with the interests of our minority shareholders.
Although the CAAC currently has a policy of equal treatment of all PRC airlines, we cannot assure you that the CAAC will not favor other PRC airlines over us. As our controlling shareholder, CEA Holding has the ability to exercise controlling influence over our business and affairs, including, but
not limited to, decisions with respect to:  

mergers or other business combinations;  

acquisition or disposition of assets;  

issuance of any additional shares or other equity securities;  

the timing and amount of dividend payments; and  

the management of our Company. We engage in related party transactions, which may result in conflict of interests. We have engaged in, from time to time, and may continue to engage in, in the future, a variety of transactions with CEA Holding and its various
members, from whom we receive a number of important services, including support for in-flight catering and assistance with importation of aircraft, flight equipment and spare parts. Because we are controlled
by CEA Holding and CEA Holding may have interests that conflict with our interests, we cannot assure you that CEA Holding will not take actions that will serve its interests over our interests. We may not be able to accurately report our financial results or prevent fraud if we fail to maintain effective internal controls over
financial reporting, resulting in adverse investor perception, which in turn could have a material adverse effect on our reputation and the performance of our shares and American Depositary Shares (the ADSs). We are required under relevant United States securities laws and regulations to disclose in the reports that we file or submit under the
Exchange Act to the SEC, including our annual report on Form 20-F, a management report assessing the effectiveness of our internal controls over financial reporting at the end of the fiscal year. Our
registered public accounting firm is also required to provide an attestation report on the effectiveness of our internal controls over financial reporting. Our management concluded that our internal controls over financial reporting were effective
as of December 31, 2020. However, we may discover other deficiencies or material weaknesses in the course of our future evaluation of our internal controls over financial reporting and we may be unable to address and rectify such deficiencies
in a timely manner. Any failure to maintain effective internal controls over financial reporting could lead to diminished investor confidence in the reliability of our consolidated financial statements, thereby adversely affecting our business,
operations, and reputation, including negatively affecting our performance in the securities markets and decreasing potential opportunities to obtain financing in the capital markets. As part of our business strategy, we have adopted various measures to develop the international side of our business and to enhance our
competitiveness in the international long-distance flight routes. Due to the differences in certain legal and market environments, we have encountered certain challenges during the course of developing our overseas business. We have already adopted
and will continue to implement measures in order to enhance the internal controls of our overseas offices and to continue the development of our overseas business.  8




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Any failure or disruption of our computer, communications, flight equipment or other
technology systems could have an adverse impact on our business operations, profitability, reputation and customer services. We
rely heavily on computer, communications, flight equipment and other technology systems to operate our business and enhance customer service. Substantially all of our tickets are issued to passengers as electronic tickets, and we depend on our
computerized reservation system to be able to issue, track and accept these electronic tickets. In addition, we rely on other automated systems for crew scheduling, flight dispatch and other operational needs. These systems could be disrupted due to
various events, including natural disasters, power failures, terrorist attacks, equipment failures, software failures, computer viruses, cyber attacks and other events beyond our control. We cannot assure you that the measures we have taken to
reduce the risk of some of these potential disruptions are adequate to prevent disruptions to or failures of these systems. Any substantial or repeated failure of or disruption to these systems could result in the loss of important data and/or
flight delays, and could have an adverse impact on our business operations, profitability, reputation and customer services, including being liable for paying compensation to our customers. We are subject to cyber security risks and may incur increasing costs in an effort to minimize those risks. The nature of our business involves the receipt and storage of personal information about our customers. We have a program in place to detect
and respond to data security incidents. To date, all incidents we have encountered have been insignificant. If we commit a significant data security breach or fail to detect and appropriately respond to a significant data security breach, we could
be exposed to government enforcement actions and private litigation. In addition, our customers could lose confidence in our ability to protect their personal information, which could cause them to stop using our services. The loss of consumer
confidence from a significant data security breach could hurt our reputation and adversely affect our business, result of operations and financial condition. Actual or anticipated attacks may cause us to incur increasing costs, including costs to deploy additional personnel and protection
technologies, train employees and engage third-party experts and consultants, costs incurred in connection with the notifications to employees, suppliers or the general public as part of our notification obligations to the various government
authorities that govern our business, or costs to dedicate significant resources to system repairs or other increase cyber security protection. We may also be required to pay fines in connection with stolen customer, employee or other confidential
information, or incur significant litigation or other costs. In October 2020, the Standing Committee of the National Peoples Congress officially released the draft of the Personal Information Protection Law, or the Draft Personal Information
Protection Law. The Draft Personal Information Protection Law provides the basic regime for personal information protection, including without limitation, stipulating an expanded definition of personal information, providing a long-arm jurisdiction in cross-border scenarios, emphasizing individual rights, and prohibiting rampant infringement of personal information, such as stealing, selling, or secretly collecting personal information.
If the Draft Personal Information Protection Law is promulgated as an effective regulation in the future, we cannot assure you that our business operations will comply with such regulation in all respects and we may be ordered to terminate certain
of our business operations that are deemed illegal by the regulatory authorities and become subject to fines and/or other sanctions. Interruptions or disruptions of service at one or more airports in our primary market could have an adverse impact on us. Our business is heavily dependent on our operations at our core hub airports in Shanghai, namely, Hongqiao International Airport and Pudong
International Airport and our core hub airport in Beijing, namely, Beijing Daxing International Airport as well as our regional hub airports in Xian and Kunming. Each of these operations includes flights that connect our primary market to
other major cities. Any significant interruptions or disruptions of service at one or more of our primary market airports could adversely impact our operations. Terrorist attacks or the fear of such attacks, even if not made directly on the airline industry, could negatively affect us and the
airline industry as a whole. The travel industry continues to face on-going security concerns and cost burdens. The aviation industry as a whole has been beset with high-profile terrorist attacks, most notably on September 11, 2001 in the United
States. The CAAC has also implemented increased security measures in relation to the potential threat of terrorist attacks. Terrorist attacks, even if not made directly towards us or on the airline industry, or the fear of or the precautions taken
in anticipation of such attacks (including elevated threat warnings or selective cancelation or redirection of flights) could materially and adversely affect us and the entire airline industry. In addition, potential or actual terrorist attacks may
result in substantial flight disruption costs caused by grounding of fleet, significant increase of security costs and associated passenger inconvenience, increased insurance costs, substantially higher ticket refunds and significantly decreased
traffic and RPK. International terrorist attacks targeting aircraft and airport not only directly threatens our flight safety, aviation security, operational safety and the safety of overseas institutions and employees, but also brings about on-going adverse impact on the outbound tourism demand for places where terrorist attacks have taken place.  9




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We could be classified as a passive foreign investment company by the United States
Internal Revenue Service and may therefore be subject to adverse tax impact. Depending upon the relative values of our passive
assets and income as compared to our total assets and income each taxable year, we could be classified as a passive foreign investment company, or PFIC, by the United States Internal Revenue Service, or IRS, for U.S. federal income tax purposes. We
believe that we were not a PFIC for the taxable year 2020. However, there can be no assurance that we will not be a PFIC for the taxable year 2021 and/or later taxable years, as PFIC status is re-tested each
year and depends on the facts in such year. We will be classified as a PFIC in any taxable year if either: (1) the average value
during the taxable year of our assets that produce passive income, or are held for the production of passive income, is at least 50% of the average value of our total assets for such taxable year (the Asset Test) or (2) 75% or more of
our gross income for the taxable year is passive income (such as certain dividends, interest or royalties) (the Income Test). For purposes of the Asset Test: (1) any cash, cash equivalents, and cash invested in short-term, interest
bearing, debt instruments, or bank deposits that is readily convertible into cash, will generally count as producing passive income or as being held for the production of passive income and (2) the average values of our passive and total assets
is calculated based on our market capitalization. If we were a PFIC, we would generally be subject to additional taxes and interest
charges on certain excess distributions our Company makes regardless of whether we continue to be a PFIC in the year in which you receive an excess distribution. An excess distribution would be either (1) the
excess amount of a distribution with respect to ADSs during a taxable year in which distributions to you exceed 125% of the average annual distributions to you over the preceding three taxable years or, if shorter, your holding period for the ADSs,
or (2) 100% of the gain from the disposition of ADSs. Risks Relating to the Aviation Industry Our business is subject to extensive government regulation. The Chinese civil aviation industry is subject to a high degree of regulation by the CAAC. Regulatory policies issued or implemented by the
CAAC encompass virtually every aspect of airline operations, including, among other things:  (a)
route allocation;  (b)
pricing of domestic airfares;  (c)
administration of air traffic control systems and certain airports;  (d)
jet fuel pricing;  (e)
air carrier certifications and air operator certification;  (f)
aircraft registration and aircraft airworthiness certification; and  (g)
airport expense policy. Our ability to provide services on international routes is subject to a variety of bilateral civil air transport agreements between China and
other countries, international aviation conventions and local aviation laws. As a result of government regulations, we may face significant constraints on our flexibility and ability to expand our business operations or to maximize our
profitability. In addition, as we operate internationally and corporate with various counterparties domestically and overseas, we may be exposed to the risks associated with foreign laws, regulations or other challenges arising from the regulatory
aspect. The downward trend in domestic and global economy could affect air travel. The airline industry is highly cyclical, and the level of demand for air travel is correlated to the strength of domestic and global economies.
Robust demand for our air transportation services depends largely on favorable general economic conditions, including the strength of global and local economies, low unemployment, strong consumer confidence and availability of consumer and business
credit. The COVID-19 pandemic had a severe and negative impact on the Chinese and the global economy in 2020. Whether this will lead to a prolonged downturn in the economy is still unknown. Even before the
outbreak of the COVID-19 pandemic, the global macroeconomic environment was facing numerous challenges. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal
policies which had been adopted by the central banks and financial authorities of some of the worlds leading economies, including the United States and China, even before 2020. In particular, there is significant uncertainty about the future
relationship between the United States and China with respect to trade policies, treaties, government regulations, and tariffs. Any economic downturn or slowdown and/or negative business sentiment could potentially have an adverse indirect impact on
almost all industries, and our business operations and financial condition may consequently be adversely affected.  10




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We operate in a highly competitive industry. We face intense competition in each of the domestic, regional and international markets that we serve. In our domestic market, we compete
against all airlines that have the same routes, including smaller domestic airlines that have lower operating costs. In the regional and international markets, we compete against international airlines that have significantly longer operating
history, better brand recognition, or more resources, such as large sales networks or sophisticated reservation systems. See the section headed Item 4. Information on the Company  Business Overview  Competition for more
details. The publics perception of safety of Chinese airlines could also materially and adversely affect our ability to compete against our international competitors. To stay competitive, we have, from time to time in the past, lowered
airfares for certain of our routes, and we may continue to do so in the future. Increased competition and pricing pressures may have a material adverse effect on our financial condition and results of operations. We depend on a limited number of suppliers for aircraft, aircraft engines and parts. The aviation transportation industry features advanced technology and high operation costs. As a result, the available suppliers for key
operating resources including aircraft, engines, flight spare parts, jet fuel and information technology services are limited. We depend on a limited number of suppliers for aircraft, aircraft engines and related parts and components. Due to the
limited number of these suppliers, we are vulnerable to any problems associated with the performance of their obligation to supply key aircraft, parts and engines, including design defects, mechanical problems, contractual performance by suppliers,
adverse perception by the public that would result in customers avoidance of any of our aircraft or any action by the regulatory authorities. We expect to face substantial competition from the rapid development of the Chinese rail network. The PRC government is aggressively implementing the expansion of its high-speed rail network, which has provided train services at a speed of
up to 350 kilometers per hour connecting major cities such as Beijing, Shanghai, Guangzhou and Hong Kong. The expansion of rail network, improvements in railway service quality, increased passenger capacity and urban center accessibility could
enhance the competitiveness of the railway service and negatively affect our market share on some of our routes, in particular our short-haul routes. For example, Yinchuan-Xian and Yancheng-Nantong
routes were largely affected by the opening of high-speed railway routes in 2020. The load factors of two routes demonstrated a trend to decrease significantly after the high-speed railway routes put into operation. Increased competition and pricing
pressures from the railway service may have a material adverse effect on our business, financial condition and results of operations. Limitations on foreign ownership of PRC airlines may affect our access to funding in the international equity capital markets or pursuing
business opportunities. The current CAAC policies limit foreign ownership of PRC airlines. Under these rules, non-PRC, Hong Kong, Macau or Taiwan residents cannot hold a majority equity interest in a PRC airline. As of December 31, 2020, approximately 31.6% of our total outstanding shares were held by non-PRC, Hong Kong, Macau or Taiwan residents or legal entities (excluding the qualified foreign institutional investors that are approved to invest in the A Share market of the PRC). As a result, our access to
funding in the international equity capital markets may be limited. This restriction may also limit the opportunities available to us to obtain funding or other benefits through the creation of equity-based strategic alliances with foreign carriers.
We cannot assure you that the CAAC will not increase these limits on foreign ownership of PRC airlines in the future. Any jet fuel
shortages or any increase in jet fuel prices may materially and adversely affect our financial condition and results of operations. The availability and prices of jet fuel have a significant impact on our financial condition and results of operations. In the past, jet fuel
shortages have occurred in China and, on limited occasions, required us to delay or cancel flights. Although jet fuel shortages have not occurred since the end of 1993, we cannot assure you that jet fuel shortages will not occur in the future. Fuel
prices continue to be susceptible to, among other factors, political unrest in various parts of the world, OPEC policies, the rapid growth of the economies of certain countries, including China and India, the inventory levels carried by industries,
the amount of reserves built by governments, disruptions to production and refining facilities and weather conditions. Fuel efficiency of our aircraft decreases as they advance in age which results in an overall increase in our aviation fuel costs.
The foregoing and other factors that impact the global supply and demand for jet fuel may affect our financial performance due to its sensitivity to fuel prices. Aircraft fuel prices have been subject to high volatility, fluctuating substantially over the past several years. Setting aside the adjustment
in factors such as fuel surcharge, if the average price of jet fuel had increased or decreased by 5%, based on the actual fuel consumption of flights in 2020, our jet fuel costs would have increased or decreased by approximately RMB692 million,
our net profit will decrease or increase by approximately RMB519 million and our other comprehensive income will increase or decrease by approximately RMB62 million. In addition, the NDRC adjusts gasoline and diesel prices in China from
time to time, taking into account the changes in international oil prices, thereby affecting aviation fuel prices. As such, we cannot assure you that jet fuel prices will not fluctuate further in the future. Due to the highly competitive nature of
the airline industry, we may be unable to fully or effectively pass on to our customers any future increase in jet fuel costs.  11




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The airline industry is subject to increasing environmental regulations, which would
increase costs and affect profitability. In recent years, regulatory authorities in China and other countries have issued a number
of directives and other regulations to address, among other things, aircraft noise and engine emissions, the use and handling of hazardous materials, aircraft age and environmental contamination remedial
clean-up measures. These requirements impose high fees, taxes and substantial ongoing compliance costs on airlines, particularly as new aircraft brought into service will have to meet the environmental
requirements during their entire service life. We have significant expenditures in respect of environmental compliance, which may affect
our operations and financial condition. For example, we focused on pollution prevention and control by facilitating the application of new technologies for energy conservation and emission reduction, speeding up the diesel-to-electric (replacement of diesel vehicle by electric vehicle) project in airports, and promoting the replacement of Auxiliary Power Unit (APU) on aircraft. We also took measures to reduce
the impact of our operations on the environment by optimizing our route network and flight schedules as well as installing energy-saving environmentally friendly engines. In addition, we continue to improve the energy efficiency of our fleet by
introducing aircraft with energy-saving technologies, such as A320neo, B787-9 and A350-900 and by retiring old aircraft. However, these measures have resulted in
significant costs and expenditures. We expect to continue to incur significant costs and expenditures on an ongoing basis to comply with environmental regulations, which could restrict our ability to modify or expand facilities or continue
operations. Our results of operations tend to be volatile and fluctuate due to seasonality. The aviation industry is characterized by annual high and low travel seasons. Our operating revenue is substantially dependent on the passenger
and cargo traffic volume carried, which is subject to seasonal and other changes in traffic patterns, the availability of appropriate time slots for our flights and alternative routes, the degree of competition from other airlines and alternate
means of transportation, as well as other factors that may influence passenger travel demand and cargo and mail volume. As a result, our results tend to be volatile and subject to rapid and unexpected change. The aviation industry is subject to many forms of environmental regulation, including increased regulation to reduce emissions and other
risks associated with climate change. Failure to comply with existing or future environmental regulations or to otherwise manage the risks of climate change effectively could have a material adverse effect on our business. Many aspects of our operations are subject to evolving and increasingly stringent national, local and international laws governing the
protection of the environment. Existing laws and future regulatory action concerning climate change and aircraft emissions could have a significant effect on the aviation industry. Given the scope of our business, we are required to comply with
international and domestic regulatory requirements for carbon emission concerning our business activities and daily operations issued by relevant authorities. Compliance with existing and future environmental laws and regulations could require
capital investment and increase operational costs, and violations can lead to significant fines and penalties and reputational harm. For more details, see Item 4. Information on the Company - B. Business Overview - Climate Change and Related
Matters. Additional regulation could result in taxation, regulatory or permitting requirements from multiple jurisdictions for the
same operations and costs for the aviation industry, including us. In addition to direct costs, such regulation could result in increased fuel costs passed through from fuel suppliers affected by any such regulations. While the specific nature of
future actions is hard to predict, new laws or regulations related to environmental matters adopted in the PRC or other countries could impose significant additional costs on our operations. Certain airports have also adopted, and others could in
the future adopt, greenhouse gas emission or climate-related goals and requirements that could impact our operations or require us to make changes or investments in our infrastructure. Finally, there is uncertainty with respect to the future supply,
demand and price of sustainable or lower carbon aircraft fuel, carbon offset credits and technologies that could allow us to reduce our emissions of carbon dioxide. Risks Relating to the PRC Our ADSs
may be delisted under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect our auditor who is located in China. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the
value of your investment. Additionally, the inability of the PCAOB to conduct inspections deprives our investors with the benefits of such inspections. The Holding Foreign Companies Accountable Act, or the HFCAA, was enacted on December 18, 2020. The HFCAA states if the SEC determines that
we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit our shares or ADSs from being traded on a national
securities exchange or in the over the counter trading market in the U.S. Our auditor, the independent registered public accounting firm
that issues the audit report included in this annual report, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB conducts
regular inspections to assess its compliance with the applicable professional standards. Without a mutual and practical cooperation mechanism between securities regulatory authorities, it remains uncertain whether and when PCAOB could implement
cross-border inspection in the PRC.  12




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There could be additional regulatory or legislative requirements or guidance that could
impact us if our auditor is not subject to PCAOB inspection. The implication of possible regulations in addition to the requirements of the HFCAA are uncertain. Such uncertainty could cause the market price of our ADSs to be materially and adversely
affected, and our securities could be prohibited from being traded or even delisted. It is unable for the PCAOB to fully evaluate the
audits and quality control procedures of registered public accounting firms in the PRC due to the PCAOBs inability to conduct inspections in the PRC. As a result, we and our investors are deprived of the benefits of such PCAOB inspections. The
inability of the PCAOB to conduct inspections of auditors in PRC makes it more difficult to evaluate the effectiveness of our independent registered public accounting firms audit procedures or quality control procedures as compared to auditors
outside of PRC that are subject to the PCAOB inspections, which could cause investors and potential investors in our stock to lose confidence in our audit procedures and reported financial information and the quality of our financial statements. Proceedings instituted by the SEC against certain PRC-based accounting firms, including our
independent registered public accounting firm, could result in financial statements being determined not to comply with the requirements of the Exchange Act. In December 2012, the SEC brought administrative proceedings against five accounting firms in China, including our then independent registered
public accounting firm, alleging that they had refused to produce audit work papers and other documents related to certain other China-based companies under investigation by the SEC. On January 22, 2014, an initial administrative law decision
was issued, censuring these accounting firms and suspending four of these firms from practicing before the SEC for a period of six months. The decision is neither final nor legally effective unless and until reviewed and approved by the SEC. On
February 12, 2014, four of these PRC-based accounting firms appealed to the SEC against this decision. In February 2015, each of the four PRC-based accounting firms
agreed to pay a fine to the SEC to settle the dispute and avoid suspension of their ability to practice before the SEC. The settlement requires the firms to follow detailed procedures to provide the SEC with access to the Chinese firms audit
documents via the China Securities Regulatory Commission (the CSRC). If the firms do not follow these procedures, the SEC could impose sanctions such as suspensions, or it could restart the administrative proceedings. Our audit committee
is aware of the policy restriction and regularly communicated with our independent auditor to ensure compliance. In the event that the
SEC restarts the administrative proceedings, depending upon the final outcome, listed companies in the United States with major PRC operations may find it difficult or impossible to retain auditors in respect of their operations in the PRC, which
could result in financial statements being determined not to be in compliance with the requirements of the Exchange Act, and possibly delisting of the securities. Moreover, any negative news about the proceedings against these audit firms may cause
investor uncertainty regarding China-based U.S.-listed companies and the market price of our ADSs may be adversely affected. If our
independent registered public accounting firm was denied, even temporarily, the ability to practice before the SEC and we were unable to find another registered public accounting firm in a timely manner to audit and issue an opinion on our financial
statements, our financial statements could be determined not to be in compliance with the requirements of the Exchange Act. Such determination could ultimately lead to our delisting from the New York Stock Exchange (NYSE) or
deregistration from the SEC, or both, which would substantially reduce or effectively terminate the trading of our ADSs in the United States. It may be difficult for overseas regulators to conduct investigation or collect evidence within China. Shareholder claims or regulatory investigation that are common in the United States generally are difficult to pursue as a matter of law or
practicality in China. For example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigations initiated outside China. Although the authorities in China may establish a
regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the Unities States may
not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct
investigation or evidence collection activities within the PRC territory. While detailed interpretation or implementation of rules under this Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly
conduct investigation or evidence collection activities within China may further increase the difficulties you face in protecting your interests. Changes in the economic policies of the PRC government may materially affect our business, financial condition and results of
operations. Since the late 1970s, the PRC government has been reforming the Chinese economic system. These reforms have resulted
in significant economic growth and social progress. These policies and measures may be modified or revised from time to time. Adverse changes in economic and social conditions in China, in the policies of the PRC government or in the laws and
regulations of China, if any, may have a material adverse effect on the overall economic growth of China and investments in and profitability of the domestic airline industry. These developments, in turn, may have a material adverse effect on our
business, financial condition and results of operations.  13




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Changes in the foreign exchange regulations in the PRC may result in fluctuations of
the Renminbi and adversely affect our ability to pay dividends or to satisfy our foreign currency liabilities. A significant
portion of our revenue and operating expenses are denominated in Renminbi, while a portion of our revenue, capital expenditures and debts are denominated in U.S. dollars and other foreign currencies. The Renminbi is currently freely convertible in
the current account, which includes payment of dividends, trade and service-related foreign currency transactions, but not in the capital account, which includes foreign direct investment, unless approval from or registration or filing with the
relevant authorities, is obtained. As a foreign invested enterprise approved by the PRC Ministry of Commerce (the MOFCOM), we can purchase foreign currencies without the approval of State Administration of Foreign Exchange (the
SAFE) for settlement of current account transactions, including for the purpose of dividend payment, by providing commercial documents evidencing these transactions. We can also retain foreign currencies in our current accounts, subject
to a maximum amount approved by SAFE, to satisfy foreign currency liabilities or pay dividends. The relevant PRC government authorities may limit or eliminate our ability to purchase and retain foreign currencies in the future. Foreign currency
transactions in the capital account are still subject to limitations and require approvals from SAFE. This may affect our ability to raise foreign capital through debt or equity financing, including through loans or capital contributions. We cannot
assure you that we will be able to obtain sufficient foreign currencies to pay dividends, if any, or satisfy our foreign currency liabilities. Furthermore, the value of the Renminbi against the U.S. dollar and other currencies may fluctuate significantly and is affected by, among
other things, the PRC government policies, domestic and international economic and political conditions and changes in the supply and demand of the currency. On July 21, 2005, the PRC government changed its policy of pegging the value of the
Renminbi to the U.S. dollar. Under the new policy, the Renminbi is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. The Renminbi depreciated 2.0% against the U.S. dollar for the year ended
December 31, 2018. The Renminbi depreciated 4.1% against the U.S. dollar for the year ended December 31, 2019. The Renminbi appreciated by appoximately 6.5% against the U.S. dollar for the year ended December 31, 2020. However, it
remains unclear what further fluctuations may occur or what impact this will have on the value of the Renminbi. It is possible that the PRC government could adopt a more flexible foreign exchange policy, which could result in further and more
significant revaluations of the Renminbi against the U.S. dollar or any other foreign currency. Any resulting fluctuations in exchange rates as a result of such policy changes may have an adverse effect on our financial condition and results of
operations. Our operations may be adversely affected by rising inflation rates in the PRC. Increase in inflation is due to many factors beyond our control, such as rising production and labor costs, high debts, changes in the PRC and
foreign governmental policy and regulations, and movements in exchange rates and interest rates. The national consumer price index, which is an indicator of the inflation, was 2.1%, 2.9% and 2.5% in 2018, 2019 and 2020, respectively. The national
consumer price index was -0.3%, -0.2% and 0.4% in January, February and March 2021, respectively. We cannot assure you that inflation rates will not increase in the future. If inflation rates rise beyond our expectations, the costs of our business
operations may become significantly higher than anticipated, and we may be unable to pass on such higher costs to consumers in amounts that are sufficient to cover those increasing operating costs. As a result, further inflationary pressures in the
PRC may have a material adverse effect on our business, financial condition and results of operations, as well as our liquidity and profitability. Any withdrawal of, or changes to, tax incentives in the PRC may adversely affect our results of operations and financial condition. Prior to January 1, 2008, except for a number of preferential tax treatment schemes available to various enterprises,
industries and locations, business enterprises in China were subject to an enterprise income tax rate of 33% under the relevant PRC Enterprise Income Tax Law. On March 16, 2007, China passed a new enterprise income tax law, or the EIT Law,
which took effect on January 1, 2008 and amended on February 24, 2017 and December 29, 2018. The EIT Law imposes a uniform income tax rate of 25% for domestic enterprises and foreign invested enterprises. Business enterprises enjoying
preferential tax treatment that was extended for a fixed term prior to January 1, 2008 will still be entitled to such treatment until such fixed term expires. Certain of our subsidiaries are entitled to preferential tax treatment, allowing us
to enjoy a lower effective tax rate that would not otherwise be available to us. To the extent that there are any increases in the applicable effective tax rate, withdrawals of, or changes in, our preferential tax treatment or tax exemptions, our
tax liability may increase correspondingly. We are a foreign private issuer within the meaning of the rules under the Exchange Act,
and as such we are exempt from certain provisions applicable to domestic public companies in the United States. Because we are a
foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including: (i) the rules under the Exchange Act
requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC; (ii) the sections of the Exchange Act regulating the
solicitation of proxies in respect of a security registered under the Exchange Act; (iii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and short swing
liability for insiders who profit from certain trades; and (iv) the selective disclosure rules by issuers of material nonpublic information under Regulation FD.  14




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We are required to file an annual report on Form
20-F within four months of the end of each fiscal year. In addition, we publish our results on a quarterly basis through press releases. Press releases relating to financial results and material events are
furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and may be less timely compared with that required to be filed with the SEC
by U.S. domestic issuers. As a result, holders of ADSs may not be afforded the same protections or information, which would be made available to them, were they investing in a U.S. domestic issuer. We are subject to the corporate governance requirements of the NYSE. However, the NYSE rules permit a foreign private issuer like us to follow
the corporate governance practices of our home country in lieu of certain NYSE rules. Certain corporate governance practices in the PRC, which is our home country, may differ significantly from the NYSE corporate governance requirements. To the
extent we choose to follow home country practice, our shareholders may be afforded less protection than they would otherwise enjoy under the NYSE corporate governance listing standards applicable to U.S. domestic issuers. Uncertainties embodied in the PRC legal system may limit certain legal protection available to investors. The PRC legal system is a civil law system based on written statutes. In 1979, the PRC government began to promulgate a comprehensive system of
laws and regulations governing economic matters in general. Legislation over the past 20 years has significantly enhanced the protection afforded to foreign investors in China. However, the interpretation and enforcement of some of these laws and
regulations involve uncertainties that may limit the legal protection available to investors. As a result, it may be difficult or impossible for our investors to bring an action against us or our directors and officers in the United States in the
event that such investors believe that their rights have been infringed under the U.S. federal securities laws or otherwise. Even if such investors are successful in bringing an action of this kind, the PRC laws may render them unable to enforce a
judgment against our assets or the assets of our directors and officers.Such uncertainties pervade as the legal system in the PRC continues to evolve. Even where adequate laws exist in the PRC, the enforcement of the existing laws or contracts may
be uncertain and sporadic, and it may be difficult to obtain swift and equitable enforcement, including enforcing a foreign judgment. In addition, the PRC legal system is based on written statutes and their interpretation; prior court decisions may
be cited as reference but have limited authority as precedents. As such, any litigation in the PRC may be protracted and result in substantial costs and diversion of our resources and management attention. We have full or majority board control over
the management and operation of all of our subsidiaries established in the PRC. The control over these PRC entities and the exercise of shareholder rights are subject to their respective articles of association and PRC laws applicable to
foreign-invested enterprises in the PRC, which may be different from the laws of other developed jurisdictions. The enacted laws and
regulations may not sufficiently cover all aspects of economic activities in the PRC and this may create additional uncertainties as to the outcome of any litigation. In addition, interpretation of statutes and regulations may be subject to
government policies reflecting domestic political changes. Furthermore, in case of new laws and regulations, the interpretation, implementation and enforcement of these laws and regulations would involve uncertainties due to the lack of established
practice or published court decisions available for reference. We cannot predict the future legal development in the PRC, including promulgation of new laws, changes to existing laws or interpretation or enforcement thereof, or inconsistencies
between the local rules and regulations and the national law. As a result, we may not be aware of any violations until sometime after the violation has occurred. This may also limit the remedies available to investors and to us in the event of any
claims or disputes with third parties. Item 4. Information on the Company A. History and Development of the Company Our registered office is located at 66 Airport Street, Pudong International Airport, Shanghai, China, 201202. Our principal executive office
and mailing address is 5/F, Block A2, Northern District, CEA Building, 36 Hongxiang 3rd Road, Minhang District, Shanghai, China. The telephone number of our principal executive office is (86-21) 6268-6268 and
the fax number for the Board Secretariats office is (86-21) 6268-6116. We currently do not have an agent for service of process in the United States. Our Company, China Eastern Airlines Corporation Limited was established on April 14, 1995 under the laws of China as a company limited by
shares in connection with the restructuring of our predecessor and our initial public offering. We are commercially known in the industry as China Eastern Airlines. Our predecessor was one of the six original airlines established in 1988 as part of
the decentralization of the airline industry in China undertaken in connection with Chinas overall economic reform efforts. Prior to 1988, the CAAC was responsible for all aspects of civil aviation in China, including the regulation and
operation of Chinas airlines and airports. In connection with our initial public offering, our predecessor was restructured into two separate legal entities, our Company and EA Group. According to the restructuring arrangement, by operation of
law, our Company succeeded to substantially all of the assets and liabilities relating to the airline business of our predecessor. EA Group succeeded to our predecessors assets and liabilities that do not directly relate to the airline
operations and do not compete with our businesses. Assets transferred to EA Group included our predecessors equity interests in companies engaged in import and export, real estate, advertising, in-flight
catering, tourism and certain other businesses. In connection with the restructuring, we entered into various agreements with EA Group and its subsidiaries for the provision of certain services to our Company. CEA Holding assumed the rights and
liabilities of EA Group under these agreements after it was formed by merging EA Group, Yunnan Airlines Company and China Northwest Airlines Company in October 2002. See Item 7. Major Shareholders and Related Party Transactions for more
details.  15




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The following chart sets forth the organizational structure of our Company and our
significant subsidiaries as of December 31, 2020:  LOGO In 2020, we took the initiative to confront the COVID-19 pandemic
and made every effort to stabilize our operations, striving to reduce the adverse impact of the COVID-19 pandemic. We have closely followed the situation of the COVID-19
pandemic and market changes to dynamically adjust the deployment of transportation capacity, laid a solid foundation in servicing the coordinated development of Beijing-Tianjin-Hebei and the construction of Xiongan New District and steadily
promoted the construction of the core hub of Beijing, and moved our base to Beijing Daxing International Airport as the main base airline as planned. During the outbreak of the COVID-19 pandemic, we launched
Wild Your Dreams, a series of innovative products, to stimulate passengers travel demand, restore market confidence, promote the recovery of the aviation market, effectively serve the internal circulation of China and achieve good
economic, social and brand benefits. We also launched the new Eastern Miles membership system and introduced the Eastern Airlines Wallet enabling points + cash payment, so as to increase the ways of using member
points. In 2020, we actively expanded financing channels and issued a total of RMB77.2 billion of super short-term debentures and RMB2 billion of corporate bonds to ensure that the cash flow can meet our operation needs. The material development of our indebtedness is set out in Note 36 to the consolidated financial statements. The capital expenditure is set
out in Item 5 in this Annual Report. The SEC also maintains a website at http://www.sec.gov that contains reports, proxy statements and
other information regarding issuers that file electronically with the SEC. We maintain our own website at http://www.ceair.com. B. Business Overview We were one of the three largest air carriers in China in terms of several indicators including number of passengers carried, ATK and
ASK in 2020 and is an important domestic airline based in and serving Shanghai, which is considered to be the international financial and shipping center of China. The primary focus of our business is the operation of civil aviation, including the
provision of passenger, cargo, mail delivery, tour operations and other extended transportation services. We operate most of our flights
through our three hubs located in eastern, northwestern and southwestern China, namely Shanghai, Xian and Kunming, respectively. With Shanghai as our core hub and Xian and Kunming as our regional hubs, we believe that we will benefit
from the level of development and growth opportunities in eastern, northern and western China as a whole by providing direct services between various cities in those regions and between those regions and other major cities in China. We have steadily
fostered the construction of a flight system for these core hubs by introducing new flight destinations and increasing the frequency of certain flights, thereby enhancing our transfer and connection capability in these hub markets. With the
commencement of operation of Beijing Daxing International Airport in 2019, Beijing Daxing International Airport also becomes one of our core hubs. With dual core hubs in both Shanghai and Beijing, we believe that we are better positioned to further
strengthen our hub network and accommodate market demands.  16




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Our domestic routes contributed approximately 82.0% of our total passenger revenues in 2020.
Our most heavily traveled domestic routes generally link Shanghai to the large commercial and business centers of China, such as Beijing, Guangzhou and Shenzhen. Our flight routes include all provincial capital cities in China and specifically
designated cities. As of December 31, 2020, we served a route network that covers 1,036 domestic and foreign destinations in 170 countries through SkyTeam, an international airlines alliance. Our passenger traffic volume (as measured in revenue passenger-kilometers, or RPKs) decreased by 51.6% from approximately 221,779 million
in 2019 to approximately 107,273 million in 2020. Our cargo and mail traffic volume (as measured in revenue freight tonne-kilometers, or RFTKs) decreased by 26.0% from approximately 2,971 million in 2019 to approximately 2,200 million
in 2020. As a result, our traffic volume (as measured in RTKs) decreased by 48.0% from approximately 22,518 million in 2019 to approximately 11,700 million in 2020. Awards We have received many awards,
recognitions and accolades through the years. In 2020, we withstood the challenges brought by the
COVID-19 pandemic and achieved constructive results. At the National Commendation Conference for Fighting the COVID-19 Pandemic in 2020, we were awarded honorary titles
including National Advanced Group in Fighting the COVID-19 Pandemic, National Advanced Individual in Fighting the COVID-19 Pandemic and
National Advanced Primary Party Organisation, and was awarded the most number of national-level advanced commendations for the COVID-19 pandemic prevention among entities in the civil aviation
system in China. In 2020, we were selected as the 2020 Golden Bee Corporate Social Responsibility  China List for our outstanding performance in social responsibility and were rated as Golden Bee Enterprise; MSCI
assigned us an ESG rating of A. Our Operations by Activity The following table sets forth our traffic revenues by activity for each of the years ended December 31, 2018, 2019 and 2020:  Year Ended December 31,2018


2019


2020(in RMB millions)Traffic revenuesPassenger


104,309



110,416



49,215Cargo and mail


3,627



3,826



4,895Total traffic revenues


107,936



114,242



54,110 Passenger Operations The following table sets forth our certain passenger operating statistics by route for each of the years ended December 31, 2018, 2019 and
2020:  Year Ended December 31,2018


2019


2020Passenger Traffic (in RPKs) (millions)


201,486



221,779



107,273Domestic


128,906



142,921



96,206Regional (Hong Kong, Macau and Taiwan)


5,289



5,046



458.0International


67,290



73,812



10,609Passenger Capacity (in ASKs) (millions)


244,841



270,254



152,066Domestic


154,059



171,684



134,702Regional (Hong Kong, Macau and Taiwan)


6,374



6,408



902International


84,408



92,162



16,463Passenger Yield (RMB)


0.54



0.52



0.49Domestic


0.56



0.54



0.46Regional (Hong Kong, Macau and Taiwan)


0.73



0.74



0.90International


0.49



0.47



0.82Passenger Load Factor (%)


82.29



82.06



70.54Domestic


83.67



83.25



71.42Regional (Hong Kong, Macau and Taiwan)


82.99



78.75



50.79International


79.72



80.09



64.44  17




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In 2018, our fleet size, number of flights and number of users with in-flight internet
connection ranked the first in China. We actively sought to establish an in-flight internet joint venture with telecom operators to reinforce and enhance our first-mover advantage in the inflight internet connection business. We continuously
optimized the customers experience on our official website and mobile application, added and optimized important functions such as pre-flight ordering of in-flight meals and publication of information regarding unusual flights. We have
vigorously promoted the establishment of overseas e-commerce platform, launched 14 new overseas websites and introduced value-added products such as oversized baggage check-in, VIP lounges and online seat selection. We strengthened the operation of
points mall, enriched point redemption products, and optimized the points payment function. In 2018, we introduced a total of 67 aircraft
of major models and a total of 14 aircraft retired. With the introduction of new aircraft, such as A350-900, B787-9 and A320NEO, and the retirement of B767 aircraft, our fleet age has been made younger. As of December 31, 2018, we operated a fleet
of 692 aircraft, which included 680 passenger aircraft and 12 business aircraft held under trust. We continuously intensified our cooperation with strategic partners to enrich the contents for cooperation and enhance the quality of cooperation.
Delta Air Lines and we continued to intensify bilateral cooperation in four aspects, namely, revenue from cooperation (including mutual sales revenue and revenue from SPA (special allocation agreements)), experience of travelers, communication
between personnel and cooperation for expansion and development. We entered into a new cooperation agreement with Air France-KLM, pursuant to which, additional routes such as Kunming-Paris and Wuhan-Paris were operated jointly commencing from
January 1, 2019. We worked with Delta Air Lines and Air France-KLM to carry out the plan for network optimization connection, as well as ground service and procedure standards for Beijing Daxing International Airport. By entering into a
comprehensive and upgraded business agreement with Qantas Airways Limited, we intensified the business partnership of both parties based on the original joint partnership. We has signed a joint cooperation agreement with Japan Airlines Co., Ltd.
(Japan Airlines), and both parties are performing the relevant anti-monopoly legal procedures of China and Japan. In 2018,
our market share (in terms of passenger throughput) in hubs such as Shanghai, Beijing and Kunming increased by 0.6, 0.4 and 0.8 percentage point, respectively, while our market share in Xian remained the same year-on-year. Through the
optimization of transit connection, the effect of hub network has gradually appeared. In respect of the number of transits connecting origin to destination, Pudong reached 4,614, representing an increase of 9.2% as compared to 2017;
Kunming reached 1,793, representing an increase of 11.5% as compared to 2017; Xian reached 739, representing an increase of 12.7% as compared to 2017; and Beijing reached 751, representing an increase of 1.0% as compared to 2017. In 2018, we put in available seat  kilometers (ASK) of approximately 244,841 million passenger-kilometers, representing an increase of
approximately 8.3% from 2017. Number of passengers carried in 2018 was approximately 121 million, representing an increase of approximately 9.4% from 2017. Passenger load factor in 2018 was approximately 82.3%, representing an increase of
approximately 1.2 percentage points from 2017. Passenger revenue in 2018 amounted to approximately RMB104,309 million, representing an increase of approximately 13.9% from 2017. In 2019, we introduced a total of 44 aircraft of major models and one aircraft retired. With the introduction of new aircraft, such as
A350-900, B787-9 and A320NEO, our fleet age structure has remained young. As of December 31, 2019, we operated a fleet of 734 aircraft, which included 723 passenger aircraft and 11 business aircraft held under trust. We have intensified our
comprehensive cooperation with strategic partners and core partners to improve the capacity of international routes and enhance the quality of cooperation. For the core markets of Shanghai and Beijing, leveraging on the operation of the satellite
terminal S1 of Shanghai Pudong International Airport (the Satellite Terminal S1 of Pudong) and Beijing Daxing International Airport, we worked with SkyTeam Airline Alliance members and other important partners to carry out the plan for
route network optimization connection, as well as the development of ground service procedure and standards, explore ground operating cooperation opportunities, design passenger travel plan portfolio products and continue to expand the scope of
code-sharing. As of the end of 2019, our codesharing covered 347 flight route destinations, 1,007 routes and 4,617 flights. For the North American market, we and Delta Air Lines started to operate in the same terminal in Satellite Terminal S1 of
Pudong and recorded increase in revenue from cooperation. For the European market, we have expanded joint operation routes with Air France-KLM by adding new routes from Kunming and Wuhan to Paris, and intensified the cooperation in the aspects such
as transfer mode of connected flights, corporate clients and joint sales. For the Australian market, our in-depth cooperation with Qantas Airways Limited in the areas of code-sharing, allocation of flight capacity, joint marketing, resources sharing
and personnel exchange has driven the growth in mutual sales revenue from cooperation. For the Asia Pacific market, we continued to facilitate the anti-monopoly approval procedures for the joint cooperation with Japan Airlines and deepened the
cooperation in the areas of route network and flight capacity sharing with Japan Airlines to strengthen our market position in Japan routes. In 2019, we have focused on the core hubs of Beijing and Shanghai, and the regional hubs such as Xian and Kunming to continuously
optimize our route network layout and flight capacity allocation so as to strengthen the our market share and influence. In 2019, our market shares in hubs such as Shanghai, Beijing, Kunming and Xian were 40.6%, 18.3%, 37.2% and 29.4%,
respectively. Through the scientific matching of routes and flight capacity and the optimization of transit connection procedures, the effect of hub network has gradually appeared. The number of transits connecting origin to destination
of the three hubs, namely Shanghai Pudong, Xian and Kunming, significantly increased by 11.6%, 34.4% and 9.9%, respectively. The transit passengers of the three hubs, namely Shanghai Pudong, Kunming, and Xian amounted to 3,488,000
passengers, 1,658,000 passengers and 580,000 passengers, respectively, representing a year-on-year increase of 11.1%, 3.0% and 7.8%, respectively. In 2019, we put in available seat  kilometers (ASK) of approximately 270,254 million passenger-kilometers, representing an increase of
approximately 10.4% from 2018. Number of passengers carried in 2019 was approximately 130 million, representing an increase of approximately 7.5% from 2018. Passenger load factor in 2019 was approximately 82.06%, remaining relatively stable as
compared to 2018. Passenger revenue in 2019 amounted to approximately RMB110,416 million, representing an increase of approximately 5.9% from 2018.  18




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In 2020, we introduced a total of 13 aircraft of major models and a total of 11 aircraft
retired. With the introduction of new aircraft, such as A350-900, B787-9 and A320NEO, our fleet age structure still continues to remain young. As of December 31,
2020, we operated a fleet of 734 aircraft, which included 725 passenger aircraft and nine business aircraft held under trust. In 2020, we
have closely followed the situation of the COVID-19 pandemic and market changes to dynamically adjust the deployment of transportation capacity. To improve our route network and the establishment of our core
hubs, we paid special attention to adjusting our capacity; we paired core hubs and important business cities with more wide-body aircraft; we optimized our route network layout and focused on the construction of express and quasi express routes in
key markets; we continued to faciliate the construction of the core hub of Beijing and moved our base to Beijing Daxing International Airport; we steadily promoted construction of hubs in important business markets such as Chengdu, Qingdao and
Wuhan. Due to the adverse impact of the COVID-19 pandemic, our production volume, revenue, profit
and other indicators all dropped significantly. In 2020, our passenger revenue amounted to RMB49,215 million, representing a decrease of 55.4% from last year, and accounted for 91.0% of our traffic revenue. The passenger traffic volume was
107,273 million passenger-kilometres, representing a decrease of 51.6% from last year. Meanwhile, our cargo traffic revenues amounted to RMB4,895 million, representing an increase of 27.9% from last year, and accounted for 9.0% of our
traffic revenue. The cargo and mail traffic volume was 2,200 million tonne-kilometres, representing a decrease of 26.0% from last year. Our other revenue amounted to RMB4,617 million, representing a decrease of 31.5% from last year. Cargo and Mail Operations We also provide air cargo and mail services. The following table sets forth certain of our cargo and mail operations statistics by route for
each of the years ended December 31, 2018, 2019 and 2020:  Year Ended December 31,2018


2019


2020Cargo and Mail Traffic (in RFTKs)


2,588



2,971



2,200(millions)Domestic


886



951



774Regional (Hong Kong, Macau and Taiwan)


35



29



9International


1,667



1,991



1,416Cargo and Mail Capacity (in AFTKs)


7,901



9,133



6,946(millions)Domestic


2,741



3,216



2,755Regional (Hong Kong, Macau and Taiwan)


191



189



42International


4,969



5,728



4,150Cargo and Mail Yield (RMB)


1.40



1.29



2.23Domestic


1.12



1.05



0.97Regional (Hong Kong, Macau and Taiwan)


5.57



5.56



8.91International


1.47



1.34



2.87Cargo and Mail Load Factor (%)


32.76



32.54



31.67Domestic


32.33



29.58



28.11Regional (Hong Kong, Macau and Taiwan)


18.39



15.21



22.45International


33.55



34.77



34.13 China Cargo Airlines has exclusive operation to independently operate and manage our passenger aircraft cargo
business. Our Operations by Geographical Area Our revenues (net of business tax) by geographical area are analyzed based on the following criteria:  (1)
Traffic revenue from services within the PRC (excluding Hong Kong Special Administrative Region (Hong
Kong), Macau Special Administrative Region (Macau) and Taiwan, (collectively known as Regional)) is classified as domestic operations. Traffic revenue from inbound and outbound services between overseas markets
excluding Regional is classified as international operations. (2)
Revenue from ticket handling services, ground services, cargo handling service and other miscellaneous services
is classified based on where the services are performed.  19




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The following table sets forth our revenues by geographical area for each of the three years
ended December 31, 2020:  2018


2019


2020(in RMB millions)Domestic


76,517



80,058



45,479Regional (Hong Kong, Macau and Taiwan)


4,017



3,846



489International


34,744



37,082



12,759Total


115,278



120,986



58,727 Regulation The PRC Civil Aviation Law provides the framework for regulation of many important aspects of civil aviation activities in China, including:  (1)
the administration of airports and air traffic control systems;  (2)
aircraft registration and aircraft airworthiness certification;  (3)
operational safety standards; and  (4)
the liabilities of carriers. The Chinese airline industry is also subject to a high degree of regulation by the CAAC. Regulations issued or implemented by the CAAC
encompass virtually every aspect of airline operations, including route allocation, domestic airfare, licensing of pilots, operational safety standards, aircraft acquisition, aircraft airworthiness certification, fuel prices, standards for aircraft
maintenance and air traffic control and standards for airport operations. Although the PRC airlines operate under the supervision and regulation of the CAAC, they are accorded a significant degree of operational autonomy. These areas of operational
autonomy include:  

whether to apply for any route;  

the allocation of aircraft among routes;  

the airfare pricing for the international and regional passenger routes;  

the airfare pricing within the limit provided by the CAAC for the domestic passenger routes;  

the acquisition of aircraft and spare parts;  

the training and supervision of personnel; and  

many other areas of day-to-day
operations. Although we have generally been allocated adequate routes in the past to accommodate our expansion plans
and other changes in our operations, those routes are subject to allocation and re-allocation in response to changes in governmental policies or otherwise at the discretion of the CAAC. Consequently, we cannot
assure you that our route structure will be adequate to satisfy our expansion plans. The CAAC has established regulatory policies
intended to promote controlled growth of the Chinese airline industry. We believe those policies will be beneficial to the development of and prospects for the Chinese airline industry as a whole. Nevertheless, those regulatory policies could limit
our flexibility to respond to changes in market conditions, competition or our cost structure. Moreover, while we generally benefit from regulatory policies that are beneficial to the airline industry in China as a whole, the implementation of
specific regulatory policies may from time to time materially and adversely affect our business operations. Because we provide services
on international routes, we are also subject to a variety of bilateral civil air transport agreements between China and other countries. In addition, China is a contracting state as well as a permanent member of the International Civil Aviation
Organization, an agency of the United Nations established in 1947 to assist in the planning and development of the international air transportation. The International Civil Aviation Organization establishes technical standards for the international
airline industry. China is also a party to a number of other international aviation conventions. Our business operations are also subject to these international aviation conventions, as well as certain foreign country aviation regulations and local
aviation laws with respect to route allocation, landing rights and related flight operation regulation.  20




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Domestic Route Rights Chinese airlines must obtain from the CAAC the right to carry passengers or cargo on any domestic route. The CAACs policy on domestic
route rights is to assign routes to the airline or airlines suitable for a particular route. The CAAC will take into account whether an applicant for a route is based at the point of origin or termination of a particular route. This policy benefits
airlines, such as us, that have a hub located at each of the active air traffic centers in China. The CAAC also considers other factors that will make a particular airline suitable for an additional route, including the applicants safety
record, previous on-time performance and level of service and availability of aircraft and pilots. The CAAC will consider the market conditions applicable to any given route before such route is allocated to
one or more airlines. Generally, the CAAC will permit additional airlines to service a route that is already being serviced only when there is strong demand for a particular route relative to the available supply. The CAACs current general
policy is to require the passenger load factor of one or two airlines on a particular route to reach a certain level before another carrier is permitted to commence operations on such route. Regional Route Rights Hong Kong routes and the corresponding landing rights were formerly derived from the Sino-British air services agreement. In February 2000, the
PRC government, acting through the CAAC, and Hong Kong signed the Air Transportation Arrangement between mainland China and Hong Kong. The Air Transportation Arrangement provides equal opportunity for airlines based in Hong Kong and mainland China.
Competition from airlines based in Hong Kong increased after the execution of the Air Transportation Arrangement. The CAAC normally will not allocate an international route or a Hong Kong route to more than one domestic airline unless certain
criteria, including minimum load factors on existing flights, are met. There is more than one Chinese airline company on certain of our Hong Kong routes. The CAAC and the Economic Development and Labor Bureau of Hong Kong entered into an agreement in 2007 to further expand the Air Transportation
Arrangement. This agreement increases the routes between Hong Kong and mainland China to expand coverage to most major cities in mainland China. The capacity limits for passenger and/or cargo services on most routes will also be gradually lifted.
Beginning in 2007, each side designated three airline companies to operate passenger and/or cargo flights and another airline company to operate all-cargo flights on the majority of the routes between Hong
Kong and mainland China. Since then, the two sides signed memorandums to further expand the Air Transportation Arrangement several times. On December 15, 2008, mainland China and Taiwan commenced direct air and sea transport and postal services, ending a nearly six-decade ban on regular links between the two sides since 1949. Under a historic agreement signed by the governments of mainland China and Taiwan in early November 2008, the new air links expanded from weekend
charters to a daily service. According to the flight plan of 2019-2020 winter and spring season of CAAC, the total number of flights between mainland China and Taiwan reached 1,320 per week. International Route Rights International route rights, along with the corresponding landing rights, are derived from air services agreements negotiated between the PRC
government, acting through the CAAC, and the government of the relevant foreign country. Each government grants to the other the right to designate one or more domestic airlines to operate scheduled services between certain points within each
country. The CAAC awards the relevant route to an airline based on various criteria, including:  (1)
availability of appropriate aircraft and flight personnel;  (2)
safety record;  (3)
on-time performance; and  (4)
hub location. Although hub location is an important criterion, an airline may be awarded a route that does not originate from an airport where it has a hub. The route rights awarded do not have a fixed expiry date and can be terminated at the discretion of the CAAC. Airfare Pricing Policy The PRC Civil Aviation Law provides that airfares for domestic routes are determined jointly by the CAAC and the agency of the State Council
responsible for price control, primarily based upon average airline operating costs and market conditions.  21




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The CAAC and NDRC jointly issued a notice on April 13, 2010, effective on June 1,
2010, pursuant to which airlines may set first-class and business-class airfares in accordance with market prices, subject to relevant PRC laws. Such pricing must be filed 30 days before effectiveness with the CAAC and NDRC. Efforts by the Chinese
regulators to promote a sale market with fair competition will also help provide a favorable environment for our business growth. At the
end of 2014, the CAAC and the NDRC jointly promulgated The Notice on Further Improving the Problems About Civil Aviation Domestic Air Transport Price Policy, which lifted the control over the civil domestic airlines cargo freight rate and changed
the prices of specific airlines from government-oriented pricing to market-oriented pricing. At the end of 2015, the CAAC announced the
Implementation Opinion on the Reform of Mechanism of Prices and Service Fee in Civil Aviation Transport, which sets the goal to generally lift the control over the prices and service fee in competitive part of civil aviation transport
by 2017,and to generally set up a basically optimized, scientific, standardized, transparent and market-oriented pricing regulatory system by 2020. In October 2016, the CAAC and the NDRC jointly promulgated the Circular on the Further Reform of Passenger Transport Price Policy in
Civil Aviation Domestic Air Transport, which loosened the control over the civil domestic airlines passenger transportation and changed the pricesfrom government-oriented pricing to market-oriented pricing. According to the circular, the
price of routes under 800km or routes above 800km that are in competition with high-speed rails for passenger transportation can be determined independently. At the end of 2017, the CAAC and the NDRC jointly promulgated the Notice on Further Improving the Problems about Passenger Transport
Price Policy in Civil Aviation Domestic Air Transport, given greater freedom to set fares on more domestic routes. On April 13,
2018, the CAAC issued the Notice on the Issuance of Domestic Route Directory with Market-adjusted Prices showing a total of 1,030 domestic routes implementing market adjusted ticket prices. On November 23, 2020, the Civil Aviation Authority and the National Development and Reform Commission, jointly issued a Notice on
Issues Related to Further Deepening the Reform of Transport Prices on Domestic Routes of Civil Aviation, which may greatly increase the volume of market-adjusted domestic routes, and the market price-determining mechanism may be further
strengthened. Under the PRC Civil Aviation Law, maximum airfares on regional and international routes are set in accordance with the
terms of the air services agreements pursuant to which these routes are operated. In the absence of an air services agreement, airfares are set by the airlines themselves or by the CAAC with reference to comparable market prices, taking into account
the international airfare standards established through the coordination of the International Air Transport Association, which organizes periodic air traffic conferences for coordinating international airfares. Discounts are permitted on regional
and international routes. For the airline industry in China as a whole, the airfare per kilometer is substantially higher for regional and international routes than that for domestic routes. Acquisition of Aircraft and Spare Parts We are permitted to import aircraft, aircraft spare parts and other equipment for our own use from manufacturers through Eastern Aviation
Import and Export Co., Ltd., or EAIEC, which is 55% owned by CEA Holding and 45% owned by our Company. This gives us a sale market with fair competition flexibility with our inventory management by allowing us to maintain a relatively lower overall
inventory level of aircraft parts and equipment than we otherwise would have to maintain. We are still required to obtain approval from the NDRC and may be subject to appraisal of the relevant competent authorities for any import of aircraft. We
generally pay a commission to EAIEC in connection with these imports. Domestic Fuel Supply and Pricing The Civil Aviation Oil Supply Company, or the CAOSC, which is supervised by the State-owned Assets Supervision and Administration Commission of
the State Council, or the SASAC, is currently the dominant civil aviation fuel supply company in China. We currently purchase a significant portion of our domestic fuel supply from CAOSC. The PRC government determines the fuel price at which the
CAOSC acquires fuel from domestic suppliers and the CAAC issues a guidance price. The retail price at which the CAOSC resells fuel to airline customers is set within a specified range based on this guidance price.  22




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In 2005, the NDRC, the CAAC and the China Air Transport Association jointly launched the
linkage mechanism for aviation fuel prices and transportation prices by airline companies. The fuel surcharge standards for domestic passenger routes were adjusted according to a series of notices regarding the adjustments of passenger fuel
surcharges on domestic routes issued by the NDRC and the CAAC from 2006 to 2008. In the second half of 2008, international crude oil prices decreased significantly, leading the NDRC and the CAAC to release an announcement on January 14, 2009 to
suspend fuel surcharges for domestic passenger routes with effect from January 15, 2009. A Notice Concerning the Relevant Issues on Establishment Linkage Mechanism for Passenger Fuel Surcharges on Domestic Routes and the Price of Domestic
Aviation Coal Oil Fuel by NDRC and CAAC, with effect from November 14, 2009, provided that fuel surcharges shall be charged by the airlines, at the airlines discretion, but within certain limits as set forth in the notice. On
March 31, 2010, the NDRC and CAAC issued the Notice Regarding the Publication of Passenger Fuel Surcharges Rate on Domestic Routes, which reduced the standard fuel surcharge by 3.1% for domestic routes. In addition, on March 31, 2011, the
NDRC and CAAC issued another similar notice, which further adjusted the standard fuel surcharge downwards. From August 1, 2011, according to the Announcement on the Linking Mechanism for Fuel Surcharges and Aviation Coal Oil Fuel,issued by the NDRC and CAAC, the rate of domestic route fuel surcharges will beadjusted each month if the difference in consolidated purchase costs for domestic aviation coal oil fuel exceeds RMB250 per ton. On March 24, 2015, the CAAC and the NDRC jointly promulgated the Notice on Adjustment of the Linking Mechanism for Fuel
Surcharges and Aviation Coal Oil Fuel in Passenger Transport of Domestic Airlines, in which they decided to increase the base price of aviation coaloil fuel from RMB4,140 per ton to RMB5,000 per ton. Safety The CAAC
has made the continuance of improvement of air traffic safety in China a high priority. The CAAC is responsible for the establishment of operational safety, maintenance and training standards for all Chinese airlines, which have been formulated
based on international standards. Each Chinese airline is required to provide flight safety reports to the CAAC, including reports of flight incidents or accidents involving its aircraft, which occurred during the relevant reporting period and other
safety related problems. The CAAC conducts safety inspections on each airline periodically. The CAAC oversees the training of most
Chinese airline pilots through its operation of the pilot training college. The CAAC implements a unified pilot certification process applicable to all Chinese airline pilots and is responsible for the issuance, renewal, suspension and cancelation
of pilot licenses. Each pilot is required to pass the CAAC-administered examinations before obtaining a pilot license and is subject to an annual examination in order to have such certification renewed. All aircraft operated by Chinese airlines, other than a limited number of leased aircraft registered in foreign countries, are required to be
registered with the CAAC. All of our aircraft are registered with the CAAC. All aircraft operated by Chinese airlines must have a valid certificate of airworthiness issued and annually renewed by the CAAC. In addition, maintenance permits are issued
to a Chinese airline only after the maintenance capabilities of that Chinese airline have been examined and assessed by the CAAC. These maintenance permits are renewed annually. All aircraft operated by Chinese airlines may be maintained and
repaired only by CAAC certified maintenance facilities, whether located within or outside China. Aircraft maintenance personnel must be certified by the CAAC before assuming aircraft maintenance posts. In early 2013, the CAAC amended the original Civil Aviation Incidents Standards and published the new Civil Aviation Incidents Standards which
became effective as of March 1, 2013. The CAAC amended the Management Rules on Safety Information of Civil Aviation which became effective on April 4, 2016 and required that related Chinese airlines should arrange a certain number
of specialists that satisfied with special requirements to take charge of the management of safety information. The CAAC promulgated the new Administrative Provisions on Emergencies of Chinas Civil Aviationwhich became effective
from April 17, 2016 and formulated the duties and responsibilities of Chinese airlines on the preventionand emergency preparedness, prediction and early warning, emergency disposal, handling and other emergency work of civil aviation.
We will ensure our relevant employees implement the new standards, which will enable us to enhance our daily operations. For more information on the safety standards and measures implemented by us, see  Maintenance and Safety 
Safety. In 2016, the CAAC promulgated the new Administrative Provisions on Civil Aviation Safety Information.As a result, we formulated new internal regulations on aviation safety information to strengthen thesafety of
our information system. Security The CAAC establishes and oversees the implementation of security standards and regulations based on the PRC laws and standards established by
international civil aviation organizations. Each airline is required to submit to the CAAC an aviation security handbook describing specific security procedures established by the airline for the day-to-day operations and security training for staff. Such security procedures must be formulated based on the relevant CAAC regulations. Chinese airlines that operate international routes must also adopt
security measures in accordance with the requirements of the relevant international agreements and applicable local laws. We believe that we comply with all applicable security regulations.  23




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Environmental Regulation We are subject to a number of environmental laws and regulations issued by regulatory authorities in China including the Environment Protection
Law of the PRC, the Prevention and Control of Noise Pollution Law of the PRC, the Environmental Protection Tax Law of the PRC, Implementing Regulations of Environmental Protection Tax Law of the PRC and Implementation Opinions on Further Promoting
the Green Development of Civil Aviation. We believe that we comply with all applicable noise and environmental regulations in material aspects. Chinese Airport Policy Prior to September 2003, all civilian airports in China were operated directly by the CAAC or by provincial or municipal governments. In
September 2003, as part of the restructuring of the aviation industry in China, the CAAC transferred 93 civilian airports to provincial or municipal governments. The CAAC retained the authority to determine the
take-off and landing charges, as well as charges on airlines for the use of airports and airport services. Prior to 2004, Chinese airlines were generally required to collect from their passengers on behalf of
the CAAC a levy for contribution to the civil aviation infrastructure fund, which was used for improving Chinas civilian airport facilities. Our revenue for the previous years is shown net of this levy. In 2003, the levy was 5% of domestic
airfares and 2% of international airfares. The levy was waived by the CAAC from May 1, 2003 to December 31, 2003. With effect from September 2004, the civil aviation infrastructure levies, now paid to the Ministry of Finance of the PRC
(MOF), have been reflected in airfares of Chinese airlines rather than collected as a separate levy. On December 28,
2007, the CAAC and the NDRC released the Implementing Scheme for the Civil Aviation Airport Charges Reform Implementation Plan, which was implemented on March 1, 2008. This new plan divides airport charges into three parts: charges related to
airline businesses; charges related to important non-airline items; and other non-airline charges. The charges related to airline businesses and important non-airline items must follow the national guided prices, in which the standard prices are rarely increased, while reduced rates can be negotiated between the airport or the service provider and the users. The plan
grants us the right to negotiate with airports on the airport charges. On January 23, 2017, CAAC promulgated the Notice of Distributing the Adjustment Plan for Charging Standards for Civil Airport, adjusting the general aviation fee policy and
the preferential policy for passenger service fees, including but not limited to the categories, meanings, management methods, benchmark prices and floating ranges of several airport charges and take-off and
landing fees. On May 28, 2019, the CAAC issued Notice on Issues Related to Civil Airport Charging, which lowered the charging standards for some airport charging items. Limitation on Foreign Ownership The CAACs present policies limit foreign ownership in Chinese airlines. Under these limits,
non-Chinese residents and Hong Kong, Macau or Taiwan residents cannot hold a majority of our total outstanding shares individually or together. For PRC air transportation companies, pursuant to the Special
Administrative Measures for Foreign Investment Access (Negative List) (2020 Edition), Chinese investors should be the controlling shareholders of a PRC public air transportation company and the total shares held by foreign investment enterprises and
its associated enterprises are not permitted to exceed 25% of the total shares of a PRC public air transportation company. Domestic
Investment According to the Regulations on Domestic Investment in Civil Aviation Industry issued by the Ministry of Transport of
PRC and effected on January 19, 2018, public air transport companies that require special management for domestic investment can keep a relative state-owned holding in its equity structure. The state-owned shares ratio requirement of major
civil transport airports is loosened. Moreover, investment restrictions among various entities in the civil aviation industry are further liberalized. Competition Domestic We compete against our domestic competitors primarily based on safety, quality of service and frequency of scheduled flights. With the
combination of our dominant position in Shanghai, our route network and our continued commitment to safety and service quality, we believe that we are well-positioned to compete against our domestic competitors in the growing airline industry in
China. However, domestic competition from other Chinese airlines has been increasing recently as our competitors have increased capacity and expanded operations by adding new routes or additional flights to existing routes and acquiring other
airlines. In addition, we have faced intense competition from entrants to our domestic markets as new investments into Chinas civil aviation industry have been made following the CAACs relaxation of certain private-sector investment
rules in July 2005. In December 2008, the CAAC announced ten measures to protect and encourage the domestic aviation industry, one of which provides that no new Chinese airlines will be licensed to incorporate and operate aviation businesses before
2010. In October 2010, the CAAC announced that the suspension of approvals for new Chinese airlines companies would continue for an indefinite period. However, if the restriction is lifted in the future, we expect that competition from other Chinese
airlines on our routes will further intensify.  24




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There are currently approximately 50 Chinese airlines in mainland China, and we compete with
many of them on various domestic routes. All of these airlines operate under the regulatory supervision of the CAAC. Our Company, Air China Limited, or Air China, which is based in Beijing and listed on the Hong Kong Stock Exchange
(HKEX) and the London Stock Exchange, and China Southern Airlines Company Limited, or China Southern, which is based in Guangzhou and listed on the HKEX and the NYSE, are the three leading air carriers in China. Each of the domestic airlines competes against other airlines operating the same routes or flying indirect routes to the same destinations.
Our principal competitors in the domestic market are China Southern and Air China, which also provide transportation services on some of our routes, principally routes originating from the major air transportation hubs in China, such as Shanghai,
Guangzhou and Beijing. Some of these routes are among our most heavily traveled routes. Since most of the major domestic airlines operate routes from their respective hubs to Shanghai, we also compete against virtually all of the major domestic
airlines on these routes. In addition, we are facing increasing competition from certain low-cost carriers, such as Spring Airlines, in the domestic market. Spring Airlines competes with us, as it operates
daily domestic routes to certain destinations such as Harbin, Shenyang, Guangzhou, Xiamen, Sanya, Kunming and Chongqing, which are covered in our domestic routes. The Twelfth Five-Year Plan for civil aviation industry in China encourages
low-cost airlines to enter into major logistics market gradually. In February 2014, CAAC issued Guidance on Facilitating Low-cost Aviation Development which aims at
supporting the development of domestic low-cost airlines. This will further intensify the competition in domestic aviation market. However, we believe we are well-positioned to compete against domestic low-cost carriers due to our expansive route network, competitive pricing, greater availability of flight services to these destinations and strong brand name. Domestic Rail The
PRC government is aggressively implementing the expansion of its domestic high-speed rail network, which has provided train services at speeds of up to 350 km per hour connecting major cities such as Beijing, Shanghai, Guangzhou and Hong Kong. The
expansion of rail network, improvements in railway service quality, increased passenger capacity and urban center accessibility could enhance the competitiveness of the railway service and negatively affect our market share on some of our routes, in
particular our short-haul routes. For example, in 2020, Yinchuan-Xian and Yancheng-Nantong routes were largely affected by the opening of high-speed railway routes. The load factors of two routes
demonstrated a trend of significant decrease after the high-speed railway routes put into operation. We have been taking active measures
in decreasing the number of short-haul routes that overlap with high-speed train routes, as well as adjusting certain airfare prices on affected routes, facilitating
air-to-railway transfers, adjusting the flight structure, and allocating flight resources to alternative routes or medium-to-long-haul routes that have higher profitability, higher demand and lessened competition. In addition, in 2013, we developed ground connection services such as
Air-Rail Service and Air-Bus Service and cooperated with Disney, brand hotel groups, and renowned international travel enterprises to develop travel products. Our Air-Rail Service and Air-Bus Service have been developing steadily with increased routes in Yangtze River Delta, Xian, Lanzhou and other cities and regions. We expect to
continue exploring cooperation opportunities with domestic railway authorities, while maintaining and strengthening our other competitive advantages, which include providing high quality services, increasing our
pre-sale product promotions and developing our transfer services. In 2020, we cooperated with China National Railway Group Co., Ltd. to open a new era of air-rail
combined transportation by linking the system of the CEA APP and Railway 12306 APP and providing one-stop joint booking of aircraft + high-speed rail, thereby offering passengers with more
convenient one-stop services. Regional Our Hong Kong routes were highly competitive before the outbreak of the COVID-19 pandemic. We operated
approximately 20 flight routes between various cities in mainland China and Hong Kong in 2019. The primary competitors on our Hong Kong routes were Cathay Pacific Airways (Cathay) and HongKong Airlines. Cathay and HongKong Airlines
compete with us on several of these routes, particularly the Shanghai-Hong Kong route. In addition, we continue to face competition from other low-cost airlines on overlapping routes connecting Hong Kong and
mainland cities. The Air Transportation Arrangement signed between the PRC government and the administrative government of Hong Kong in February, 2000 provides for equal opportunity for airlines based in Hong Kong and mainland China. We currently
operate one flight route between mainland China and Hong Kong. The policy restraint on direct flights between Taiwan and mainland China
has been further loosened in the past few years but there has been no further negotiation on the expansion of such arrangement between Taiwan and mainland China since mid-2016. However, given the arrangement
is subject to the political relationship between Taiwan and mainland China, any deterioration in such political relationship may cause the discontinuity or disruption in the flight arrangement. As one of the several airlines offering Taiwan-mainland
China direct flight services, we cannot assure you that we will maintain or will continue to be allocated sufficient Taiwan-mainland China routes, or our results will not be adversely impacted. We compete with China Airlines, China Southern and Eva
Air on our route connecting mainland cities and Taiwan. We currently operate one flight to Taipei from mainland China.  25




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We compete with Air Macau on the Shanghai Pudong-Macau route. Air Macaus routes also
provide an alternative to our Hong Kong routes for passengers traveling between Taiwan and mainland China. As of December 31, 2020, we operated five flight routes from mainland China to Macau. International We
compete with Air China, China Southern and many other well-established foreign carriers on our international routes. Most of our international competitors are very well-known international carriers and are substantially larger than we are and have
substantially greater financial resources than we do. Many of our international competitors also have significantly longer operating histories and greater name recognition than we do. Some international passengers, who may perceive these airlines to
be safer and provide better service than Chinese airlines in general, may prefer to travel on these airlines. In addition, many of our international competitors have more extensive sales networks and utilize more developed reservation systems than
ours, or engage in promotional activities, such as frequent flyer programs, that may be more popular than ours and effectively enhance their ability to attract international passengers. To improve our competitive position in international markets, we have established additional dedicated overseas sales offices, launched our
own frequent flyer program, participated in Asia Miles, a popular frequent flyer program in Asia, and entered into code-sharing arrangements with a number of foreign airlines. We have also improved our online reservation and payment
system. In addition, in June 2011, we joined SkyTeam, an international airlines alliance and frequent flyer mileage program that includes, among others, international carriers such as Delta Air Lines, China Southern, Alitalia, Air France and KLM. As
a member of SkyTeam alliance, our Elite members can enjoy approximately 790 VIP lounges worldwide. Since 2013, we have been implementing code-sharing programs to extend our international route and improve our competitiveness and reputation in the
international market. In 2020, we have actively responded to industry competition, proactively strived for additions of air traffic rights and time slot resources in hub markets and core markets, steadily improved utilization of aircraft and
penetration in core markets, and consolidated and expanded our market share in the four major hubs and core markets. Leveraging on the SkyTeam Airline Alliance platform, we enhanced our strategic cooperation with Delta Air Lines, Inc. and Air France
KLM, and strengthened our cooperation with non-member airlines of the SkyTeam Airline Alliance such as Qantas Airways Ltd and Japan Airlines Co., Ltd, so as to develop an efficient and convenient flight
network covering all parts of China and connecting all parts of the world. As of December 31, 2020, we cooperated with 10 airline companies outside the SkyTeam Airline Alliance on code sharing. Maintenance and Safety The rapid
increase in air traffic volume in China in recent years has put pressure on many components of Chinas airline industry, including air traffic control systems, the availability of qualified flight personnel and airport facilities. In recent
years, the CAAC has placed increasing emphasis on the safety of airline operations in China and has implemented a number of measures aimed at improving the safety record of the airlines. Our ability to provide safe air transportation in the future
depends on the availability of qualified and experienced pilots in China and the improvement of maintenance services, national air traffic control and navigational systems and ground control operations at Chinese airports. We have a good safety
record and regard the safety of our flights as the most important component of our operations. Maintenance Capability Through our cooperation with service providers and ventures with other companies, we currently perform regular repair and maintenance checks on
all of our aircraft, which include D1 checks, C checks and other maintenance services for certain aircraft and other flight equipment. We also perform certain maintenance services for other Chinese and international airlines. We have four main
maintenance bases in Shanghai, Kunming and Xian and several maintenance bases in our provincial hubs including Taiyuan, Qingdao, etc. We also constructed a new maintenance base in Beijing Daxing International Airport in 2019. Our primary
aircraft maintenance base is at Pudong International Airport. We employed approximately 13,258 workers as maintenance personnel as of December 31, 2020. We prepared our own training plan for our employees to meet the requirements of certain
regulations and the needs for future development. In order to enhance our maintenance capabilities and to reduce our maintenance costs, we have acquired additional maintenance equipment, tools and fixtures and other assets over the past few years,
such as airborne testing and aircraft data recovery and analysis equipment. In 2019, we increased our capacities in our maintenance bases in Kunming and Xian by installing one additional production line for the maintenance of narrow-body
aircraft in each of the two bases.Our avionics equipment is primarily maintained and repaired at our electronic maintenance equipment center located in Shanghai. In 2020, our maintenance bases continued to guarantee the maintenance and support work
required for the daily operation of our large fleet.  26




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We entered into a joint venture with Honeywell International Inc. (Honeywell),
formerly Allied Signal Inc., in Shanghai for performing maintenance and repairs on aircraft wheel assemblies and brakes. Since October 1997, we have operated a maintenance hangar at Hongqiao International Airport, which has the capacity to house two
wide-body aircraft. We and Rockwell Collins International Inc. of the United States have also co-established Collins Aviation Maintenance Service Shanghai Limited, which is primarily engaged in the provision
of repair and maintenance services for avionics and aircraft in-flight entertainment facilities in China. We and Rockwell Collins International Inc. hold 35% and 65%, respectively, of the equity interests in
the joint venture. Moreover, in November 2002, we, jointly with Aircraft Engineering Investment Limited, established Shanghai Eastern Aircraft Maintenance Limited, in which we hold 60% of the equity interests, to provide supplemental avionics and
other maintenance services to us. STA, which was established in 2004 by us and Singapore Technologies Aerospace Ltd. under a joint venture agreement dated March 10, 2003, also provides us with aircraft maintenance, repair and overhaul services.
In 2019, we entered into one agreement with Honeywell, pursuant to which we expected we will save certain repairing costs. In 2020, we did not enter into any maintenance agreement with Honeywell. In 2007, we entered into joint venture with United Technologies Corp. and took over equity interests in maintenance companies such as Boeing
Shanghai Aviation Services Co., Ltd., Shanghai Hute Aviation Technology Co., Ltd. and Shanghai Airlines. In 2014, we established Eastern Airlines Technology Co. Ltd. (Eastern Technology), a wholly-owned subsidiary specializing in
aircraft maintenance. Since 2016, our customer base continued to expand, other airlines such as Singapore Airlines, AirAsia, Royal Brunei Airlines, Macau Airlines, Delta Air Lines, Asiana Airlines, Hong Kong Airlines, Malaysia Airlines, Air Busan,
British Airways and Egypt Air became customers of Eastern Technology. In 2020, we did not enter into any joint venture or cooperation agreement. Safety The
provision of safe and reliable air services for all of our customers is one of our primary operational objectives. We implement uniform safety standards and safety-related training programs in all operations. Our flight safety management division
monitors and supervises our flight safety. We have had a flight safety committee since the commencement of our business, comprised of members of our senior management, to formulate policies and implement routine safety checks at our Shanghai
headquarters and all provincial hubs. The flight safety committee meets monthly to review our overall operation safety record during the most recent quarter and to adopt measures to improve flight safety based upon these reviews. We have also
implemented an employee incentive program, using a system of monetary rewards and discipline, to encourage compliance with the CAAC safety standards and our safety procedures. We periodically evaluate the skills, experience and safety records of our
pilots in order to maintain strict control over the quality of our pilot crews. In 2011, we were awarded the Flight Safety Five-star Award by CAAC for our commitment to aviation and operations safety. Since 2013, we have been strengthening our Safety Management System (SMS) and further enhanced our safety management system by
strengthening the enforcement of safety responsibilities, our safety supervision and inspection, our risk control over special routes and international routes for long-haul flights, enhancing our operational risk alert abilities, boosting the
quality of training for our pilots, improving our system for developing talents with core skills, enhancing our ability in handling security-related contingencies, and strictly implementing safety requirements for our flights. In 2019, we adhered to
the civil aviation safety with zero tolerance for safety hazards, and has maintained safe operation throughout the year. In addition, we have studied the risks of new aircraft and new routes in advance to continuously strengthen the foundation for
safe development. In terms of mechanism establishment, we have improved the relevant rules and regulations as well as implementation rules of our safe production responsibility system to further enhance safety requirements. In 2020, we continued to place great emphasis on ensuring safe operation and have ensured that all employees signed the safety responsibility
agreement on maintaining the original aspiration, assuming the mission, fulfilling commitments and making contributions to further strengthen the implementation of safety responsibilities. In respect of strengthening risk supervision, we
carried out in-depth safety rectification and special inspections of safety work, inspected and supervised key units and key tasks, carried out comprehensive investigation of hidden dangers, and improved
safety management capabilities. In respect of the promotion of practice construction, based on the theme of the three reverences, we strengthened safety publicity and education, carried out practice and discipline rectification, and laid
a solid foundation for safety management. In 2020, our fleet had 1,547,600 safe flying hours and 672,200 take-off and landing flights in total, which have respectively decreased by 35.4% and 32.0% compared to
the same period in 2019 due to the decrease in travel demand resulting from the COVID-19 pandemic.  27




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Cyber-security With respect to our internal policies on cyber-security and internet safety, we have established an information safety management system and
issued internal regulations on cyber-security, internal hardware and data safety systems to prevent loss of information due to cyber-security incidents, network outages or hardware incidents. We also plan to implement measures relating to the office
environment information safety management and information system emergency management, information system access control, protection from any malicious software, management of information exchange tools and internal review and audit of information
safety risks. Furthermore, we have entered into a strategic cooperation plan with the China Information Technology Security Evaluation Center by which their trained engineers evaluate our internal data security policies and cyber-security measures.
Since 2012, we established and announced four internal regulations relating to cyber-security, namely, China Eastern Airlines Information Security Management Regulation, China Eastern Airlines Information System Application and Development Safety
Regulation, China Eastern Airlines Information Security Incident Management Regulation, China Eastern Airlines Information System Classification Measures, China Eastern Airlines Accounts Management Regulation and China Eastern Airlines Information
System and Personal Data Protection Management Requirements, which we believe will strengthen our information safety management systems and overall cyber-security defenses. In addition, in strict compliance with the relevant provisions of the
General Data Protection Regulation (GDPR) by the European Union, we have appointed a data protection officer to enhance the protection of customer information and prevent network security risks. In 2020, we continuously promoted the construction of information security projects, and established a sound information security-related
technical protection and security management platform. We strengthened information security management by deepening the strategic cooperation with external security agencies. In response to the implementation of the GDPR released by the European
Union, we appointed a data protection officer. We strengthened customer privacy terms of online channels, assessed risks of third-party platforms and reinforced the passenger information protection firewall. In addition, we initiated a
special task for network protection to improve its network security protection capabilities. We did not purchase any insurance for
internet security. Fuel Supplies Jet fuel is one of the major expenses of airlines. Fuel costs represented approximately 17.7% of our total operating expenses in 2020. We
currently purchase a significant portion of the aviation fuel for our domestic routes from regional branches of the CAOSC.Fuel costs in China are affected by costs at domestic refineries and limitations in the transportation
infrastructure, as well as by insufficient storage facilities for aviation fuel in certain regions of China. Fuel prices at six designated major airports in China, namely, the airports in Shanghai Pudong, Shanghai Hongqiao, Beijing, Guangzhou,
Shenzhen and Tianjin, are set and adjusted once a month by the CAAC in accordance with prevailing fuel prices on the international market. For our international routes, we purchase a portion of our aviation fuel from foreign fuel suppliers located
at the destinations of these routes, generally at international market prices. Significant fluctuations of international oil prices will significantly impact jet fuel prices and our revenue from fuel surcharge and accordingly our results of
operations. In 2020, our total aircraft fuel cost was approximately RMB13,840 million, representing a decrease of 59.5% from
RMB34,191 million in 2019. The decrease was due to a decline in our fuel consumption by 38.5% and a drop in the average price of fuel by 34.2% from last year, both of which are attributable to the impact of the
COVID-19 pandemeic. We cannot assure you that fuel prices will not fluctuate in the future. Further, due to the highly competitive nature of the airline industry and government regulation on airfare pricing,
we may be unable to fully or effectively pass on to our customers any increased fuel costs we may encounter in the future. However, we intend to continue focusing on enhancing our jet fuel procurement policies and developing additional internal
cost-control measures, which include streamlining the number of aircraft models in our fleet and optimizing route structures, which we believe will enable us to control our fuel costs. Ground Facilities and Services The
center of our operations is Shanghai, one of Chinas principal air transportation hubs. Our Shanghai operations are based at Hongqiao International Airport and Pudong International Airport. In addition, we also started our operation in Beijing
Daxing International Airport following its commencement of operation in September 2019. We currently also operate from various other domestic airports. We have hangars, aircraft parking and other airport service facilities at these airports, and
provide ground services in these locations. We have our own ground services and other operational services, such as aircraft cleaning and
refueling and the handling of passengers and cargo for our operations at Hongqiao International Airport and Pudong International Airport. We also provide ground services for many other airlines that operate to and from Hongqiao International Airport
and Pudong International Airport. In-flight meals and other catering services for our
Shanghai-originated flights are provided primarily by Shanghai Eastern Air Catering Limited Liability Company, a joint venture company affiliated with CEA Holding. We generally contract with local catering companies for flights originating from
other airports. In 2020, we strengthened our service management, further improved service efficiency and service experience such as check-in, baggage check-in, priority boarding and VIP lounge.  28




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Marketing and Sales Passenger Operations Our marketing strategy with respect to passenger operations is primarily aimed at increasing our market share for all categories of air
travelers. With respect to our Hong Kong and international routes, we are permitted to market our services based on price. We have limited flexibility in setting our airfares for domestic routes and adjust our domestic airfares in response to market
demand. As part of our overall marketing strategy, we emphasize our commitment to safety and service quality. We believe that emphasis on safety is a critical component of our ability to compete successfully. We have also adopted customized strategies to market our services to particular travelers. We seek to establish long-term customer
relationships with business entities that have significant air travel requirements. In order to attract and retain business travelers, we focus on the frequency of flights between major business centers, convenient transit services and an extensive
sales network. We launched our initial frequent flyer program in 1998 and joined the Asia Miles frequent flyer program in April 2001 to attract and retain travelers. In August 2003, we upgraded and rebranded our frequent flyer program to
Eastern Miles and introduced a series of new services, including, among others, instant registration of membership and mileage, online registration of mileage, and accumulation of mileage on expenses at certain hotels, restaurants and
other service providers that are our strategic partners. The special services hotline 95530 call center was established and came into operation in 2004. In light of the expansion of national high-speed railway network, we have cooperated
with the Shanghai Railway Bureau to launch Air-Rail Pass Transportation products. Our domestic and international flights together with the high-speed railway products at Shanghai Hongqiao
International Airport and Shanghai Pudong International Airport, have formed an air-rail two-way transportation product, which has helped us broaden our customer
resources. In terms of our customer resources, we have actively explored and expanded our customer base of
high-end business travelers to accelerate the development of group clients. In addition, we have fully promoted the expansion of Eastern Miles membership. In order to attract more members and to provide
members with better experience in terms of diversity, comprehensiveness and flexibility, we have strengthened our cooperation with retail stores by increasing the number of co-operative stores, covering
various industries such as financial services, hotel, car rental and health services. We also strengthened the operation of points mall, enriched point redemption products, and optimized the points payment function. During the outbreak of the COVID-19 pandemic, we first launched Wild Your Dreams, a series of innovative products, to stimulate passengers travel demand, restore market confidence, promote the recovery of the aviation
market, effectively serve the internal circulation of China and achieve good economic, social and brand benefits. We actively expanded the sales channels of auxiliary products such as VIP lounges and realized the voucher sales of products such as
class upgrades, so as to increase auxiliary revenue; and launched the new Eastern Miles membership system and introduced the Eastern Airlines Wallet enabling points + cash payment, so as to increase the ways of
using member points. Our members can use CEA points for purchasing products from us and other suppliers. The consumption scenarios and value for CEA points were increased. We also strictly implemented on-board
protection measures, optimized on-board service procedures and meal services, and improved passenger satisfaction. Taking into account the significant reduction in air travel of members during the outbreak of
the COVID-19 pandemic, we proactively issued a protection policy for automatic extension of membership level to enhance member loyalty and satisfaction.As of the end of 2020, frequent flyer members of
Eastern Miles reached 45.22 million, increased by 5.95% as compared to 2019. Our advertising, marketing and other
promotional activities include the use of social media, online platforms, radio, television and print advertisements. We continue to diversify our advertising and promotional channels. We plan to continue to use advertising and promotional campaigns
to increase sales on new routes and competitive routes. In 2016, China Eastern Airlines E-Commerce
Co., Ltd. (Eastern E-Commerce) established an e-commerce platform by integrating our online and offline platforms. Ticket returns, rebooking and upgrades via
multiple channels, such as our official website, mobile application and member website were launched with success. In 2020, we continued to optimize the e-commerce platform to ensure user experience. At the
same time, we upgraded the CEA APP and official website, supporting new functions such as Wild Your Dreams ticket packages, seat selection, multiple login methods, unified display of orders, site-wide search and epidemic prevention
functions. We made efforts to provide passengers with more product choices while ensuring the efficiency of the system. Ticket
Booking Systems In 2002 and again in 2012, we upgraded our online ticket booking and payment system to facilitate customer
purchases of tickets via the Internet. In 2012, we also expedited the construction of nine overseas websites in a variety of languages. We continue to encourage our customers to book and purchase tickets via the Internet by initiating various
promotional campaigns, upgrading and expanding the services offered by our online sales system. In 2012, we introduced China Eastern Mobile E, a smartphone application that provides mobile flight booking, flight status and online
checking services, which we believe will provide our customers with additional convenient, value-added services. We have been continuing to update our mobile phone application and our official website to enhance our direct sales efforts as well as
vigorously promoting the establishment of overseas e-commerce platform.  29




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In 2019, we established a joint team comprising of our client department, IT department and
Eastern E-Commerce to upgrade our overall capabilities of e-commerce operation. We also launched a series of updates to our official website and mobile phone application
in 2019. In 2020, our global websites have used global acceleration services. The access speed and the system availability have been imporoved significantly. In 2020, revenue from our direct sales channels (including our official website and mobile
phone application) amounted to RMB93.8 billion, representing a decrease of approximately 29.5% as compared to 2019, primarily due to government restrictions on and decreased willingness to travel resulting from the outbreak of the COVID-19 pandemic. It is estimated that a new version of our official website and mobile phone application with multiple languages and currencies incorporated will be launched in 2020, where global travelers can
purchase tickets and other products through one website and one mobile phone application. We also maintain an extensive domestic network
of sales agents and representatives in order to promote in-person ticket sales and to assist customers. Direct sales are also promoted through the availability of our telephone reservation and confirmation
services. In addition to our domestic sales agents located in various cities in mainland China, Hong Kong, Macau and Taiwan, we maintain overseas sales or representative offices worldwide, including: (i) North American locations such as
Honolulu, Los Angeles, New York, San Francisco and Vancouver; (ii) European and Middle Eastern locations such as Frankfurt, Hamburg, London, Moscow, Paris, Rome, Madrid, Brussels and Munich; (iii) Asia-Pacific locations such as Seoul,
Tokyo, Osaka, Nagoya, Fukuoka, Hiroshima, Sapporo, Niigata, Fukushima, Okinawa, Shizuoka, Kanazawa, Toyama, Nagasaki, Kagoshima, Okayama, Matsuyama, Singapore, Bangkok, Phuket, New Delhi, Kolkata, Kuala Lumpur, Ho Chi Minh, Bali, Dubai, Dhaka, Phnom
Penh, Siem Reap, Vientiane, Yangon, Mandalay, Kathmandu and Maldives; and (iv) Australian locations such as Melbourne and Sydney. As
of June 1, 2008, we stopped issuing paper tickets for air travel in accordance with a mandate from the International Air Transport Association (IATA). The IATA currently represents approximately 290 airlines and comprises
approximately 82% of the worlds air traffic. As a result of the mandate, we now issue electronic itineraries and receipts as well as electronic tickets to our passengers. We believe the transition to 100% electronic ticketing will decrease
administrative costs, increase flexibility and travel options for passengers, in addition to benefiting the environment through the reduced need for paper. All of our direct passenger ticket sales are recorded on our computer systems. Most Chinese
airlines, including us, are required to use the passenger reservation service system provided by the CAACs computer information management center, which is linked with the computer systems of major Chinese commercial airlines. In 2020, we
continued to use the TravelSky Passenger Service System (PSS), cooperated with several international reservation systems with which we have carried out relevant business cooperation for many years, including Amadeus, Sabre, Travelport, Infini and
Axess. Among them, Axess is scheduled to terminate its operations with us on June 30, 2021 due to its sole reason and our cooperation with other companies developed normally. In 2020, we cooperated with China National Railway Group Co., Ltd. to
open a new era of air-rail combined transportation by linking the system of the CEA APP and Railway 12306 APP and providing one-stop joint booking of
aircraft + high-speed rail, thereby offering passengers with more convenient one-stop services. SkyTeam Alliance We officially joined SkyTeam, an international airlines alliance and frequent flyer mileage program that includes international carriers such
as, among others, Delta Air Lines, Alitalia, Air France and KLM, on June 21, 2011 and have continued expand our code-sharing programs with SkyTeam members on more routes. In 2019, we further deepened and expanded our cooperation with SkyTeam
member airlines. In 2020, leveraging on the SkyTeam Airline Alliance platform, we enhanced our strategic cooperation with Delta Air Lines, Inc. and Air France KLM to develop an efficient and convenient flight network covering all parts of China and
connecting all parts of the world. By connecting to the route networks of other SkyTeam member airlines, we were able to offer our
passengers seamless transit to 44 destinations in 15 countries under a single plane ticket with direct luggage services as of December 31, 2020. Passengers may also enjoy the comfort of more than 750 VIP airport lounges of SkyTeam around the
world. 1,036 domestic and foreign destinations in 170 countries were covered through extensive global cooperation of 19 member airlines. We believe this will be another benefit for our passengers, as they will be afforded additional flight options
and frequent flyer mileage benefits through our SkyTeam alliance partners. In addition, we will benefit from possible codeshare and cooperative flight options, reduced costs and increased alliance-related marketing and promotion overseas.  30




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Patents and Trademarks We own or have obtained licenses to use various domestic and foreign patents, patent applications and trademarks related to our business. While
patents, patent applications and trademarks are important to our competitive position, no single one is material to us as a whole. In addition, we own various trademarks related to our business. The most important trademark is the service trademark
of China Eastern Airlines Corporation Limited. All of our trademarks are registered in China. Insurance The CAAC purchases fleet insurance from PICC Property and Casualty Company Limited (PICC), and China Pacific Property Insurance
Company Ltd., on behalf of all Chinese airlines. PICC has reinsured a substantial portion of its aircraft insurance business through Lloyds of London. The fleet insurance is subject to certain deductibles. The premium payable in connection
with the insurance is allocated among all Chinese airlines based on the aircraft owned or leased by these airlines. Under the relevant PRC laws, the maximum civil liability of Chinese airlines for injuries to passengers traveling on domestic flights
has been increased to RMB400,000 per passenger in March 2006, for which we also purchase insurance. As of July 31, 2006, the Convention for the Unification of Certain Rules for International Carriage by Air of 1999, or Montreal
Convention, became effective in China. Under the Montreal Convention, carriers of international flights are strictly liable for proven damages up to 128,821 Special Drawing Rights and beyond that, carriers are only able to exclude liability if they
can prove that the damage was not due to negligence or other wrongful act of the carrier (and its agents) or if the damage solely arose from the negligence or other wrongful act of a third party. We believe that we maintain adequate insurance
coverage for the civil liability that can be imposed due to injuries to passengers under Chinese law, the Montreal Convention and any other agreement we are subject to. We also maintain hull all risk, hull war risk and aircraft legal liability
insurance, including third party liability insurance, of the types and in amounts customary for Chinese airlines. Climate Change and Related Matters Many aspects of our operations are subject to evolving and increasingly stringent national, local and international laws governing the
protection of the environment. In recent years, regulatory authorities in China and other countries have issued a number of directives and other regulations to address, among other things, aircraft noise and emissions, the use and handling of
hazardous materials, aircraft age and environmental contamination remedial clean-up measures. These requirements impose high fees, taxes and substantial ongoing compliance costs on airlines, particularly as
new aircraft brought into service will have to meet the environmental requirements during their entire service life. Existing laws and
future regulatory action concerning climate change and aircraft emissions could have an effect on the aviation industry. For example, in order to address aircraft carbon dioxide emissions, the International Civil Aviation Organization
(ICAO), a United Nations specialized agency, formally adopted, on the 39th Session of the ICAO Assembly, a global market-based management (MBM) scheme in the form of the Carbon Offsetting and Reduction Scheme for
International Aviation (CORSIA) to address any annual increase in total CO2 emissions from international civil aviation (i.e. civil aviation flights that depart in one country and arrive in a different country) above the 2020 levels, taking into
account special circumstances and capabilities of respective airlines. Certain CORSIA program details remain to be developed and thus the impact of CORSIA cannot be fully predicted at this time. However, CORSIA is expected to increase operating
costs for airlines that operate internationally. In 2008, the European Union (EU) issued the ETS2003/87/EC Directive, which
implemented a greenhouse gas market-based reduction mechanism for the civil aviation industry from 2012 onwards, covering all flights arriving or departure at or from the EU airports. In 2013, 2014 and 2017, the European Commission amended the
original directive several times, narrowing down the scope to cover only flights operating between two airports within the EU and allowing airlines with annual emissions of less than 3,000 tonnes of CO2 to use simplified methods for monitoring
reporting and certification in accordance with the requirements of small emitters. In accordance with the relevant EU resolutions and
relevant documents of the Civil Aviation Administration of China (CAAC), we are qualified as a small emitter and have completed the carbon allowance compliance clearances for flights operating between two airports within the EU between
2012 and 2020. On July 14, 2021, the European Commission put forward the proposal of Fit for 55 Package. The ultimate
goal was to reduce emissions by 55% by 2030 as compared to that of 1990s, so as to achieve a completely climate-neutral EU by 2050. The European Union proposed to phase out the free ETS quotas allocated to airlines by 2026, which will further
increase carbon emission management costs for airlines. According to the regulatory requirements on carbon emissions management issued by
the relevant national and Shanghai regulatory authorities, we are required to timely submit the monitoring plans and carbon emission reports, accept inspection for carbon emission, fulfil the obligations of quota clearance as scheduled and improve
the comprehensive capabilities of carbon emission management and trading. However, we may be subject to additional carbon trading
compliance requirements in the future due to the general regulatory trend towards evolving and increasingly stringent protection against greenhouse gas emissions. For more information on the environmental regulation requirement, see Item 3.
Key Information - Risk Factors - Risks Relating to the Aviation Industry - The aviation industry is subject to many forms of environmental regulation, including increased regulation to reduce emissions and other risks associated with climate change.
Failure to comply with existing or future environmental regulations or to otherwise manage the risks of climate change effectively could have a material adverse effect on our business.  31




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In response to such general regulatory trend towards evolving and increasingly stringent
protection against greenhouse gas emissions, the airline companies seek to adopt all kinds of approaches to address relevant issues, including improving the fuel efficiency of the existing aircraft fleet through the retirement of older aircraft and
their replacement with newer, more fuel efficient aircraft; implementing fuel saving procedures in their flight, route and ground support operations that further reduce carbon emissions; and supporting efforts to develop sustainable alternative
fuels and other innovative technologies to further reduce their emissions and minimize their impact on the environment. We believe such industry trend will lead to the accelerated fleet upgrading plan of airline companies, introduction of more low
emission and fuel efficient aircraft, enhanced promotion in the application of energy-saving and environmentally friendly products, maintain compliance in the carbon trading in international and domestic markets, and careful management of
reputational risk arising from non-compliant carbon emissions. Being one of the largest players
in international aviation industry, our commitment to reduce overall environmental impact of greenhouse gas emissions have been persistent. We have complied with international and domestic regulatory requirements for carbon emission and we are
pushing further with reducing our carbon footprint. In particular, we participated in the EU ETS and the Shanghai Environment and Energy Exchange scheme and fulfilled our carbon emission obligation. We are also actively exploring voluntary emission
reduction mechanisms by purchasing China Certified Emission Reductions (CCER) and introducing carbon neutrality flights. We are also committed to investing in greenhouse gas emission reduction measures. Our efforts include introducing new
energy-efficient aircraft and retiring and replacing our older aircraft, and having wingtips and modified engines retrofitted on the aircraft, introducing electric-powered vehicles in the airport and implementing other refined fuel-saving measures
to reduce greenhouse gas emissions. Transition risks Service Demand It does
not appear to us that climate change has an apparent effect on the demand for our air travel services for the time being, based on the following two factors: (i) The change in demand for air travel services is not attributable to the climate change. Air travel remains one of the most efficient and
main methods of travel domestically and globally. Chinas aviation market has experienced a rapid growth for the past ten years, with the number of passengers in the civil aviation sector in China increased from 282.2 million in 2011 to
663.6 million in 2019, representing a CAGR of 11.3%, according to the data publicly available on the website of National Bureau of Statistics of China. However, the aviation industry has been going through a severe downturn after the breakout
of COVID-19 in 2020. The rapid spread and the persistence of the pandemic, as well as the measures governments and private sectors have taken in order to stem the spread of this pandemic, have had, and are
continuing to have a material adverse effect on the demand for worldwide air travel, and likewise, on the demand for our services. No apparent signs were found that change in demand for our services is attributable to climate change before or during
the COVID-19 pandemic. With the introduction of vaccines and effective medications, we believe the pandemic will eventually be under control and in the long run, demand for air travel services will recover in
line with the economic recovery. (ii) Passenger behaviour does not change. When passengers choose to travel by air or other means of
transport, the main factors taken into consideration by them are the length of the journey, the fare and the ease of transfer to the downtown area of the city. When choosing between different airlines, passengers generally consider factors such as
fare, security, quality of service and departure and arrival time of the flight. It does not appear to us that passengers have been focused on climate change when making their travel plan or choosing between different means of transport or different
airlines for the time being. However, going forward, if the laws and regulations keep evolving and relevant regulators decide to mandate
a high additional charge related to climate change for certain means of transport, passengers will most likely take into consideration the climate change when making travel plans. Also, with the increasing public awareness of climate change,
passenger behaviors may start to change as well. If both regulatory trends and passenger behaviors were to change, it is expected that demand for air travel services will decrease for airlines which undervalued the importance of climate change and
have not taken measures to save energy and reduce carbon emissions. In this regard, we have been constantly monitoring passenger behaviors, closely following regulatory and industry trends in energy conservation and carbon emission reduction, and
have implemented a number of energy-saving and carbon emission reduction improvements, so as to minimize any possible decreases in demand for our services related to climate change.  32




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Reputational Risk Currently, we are not aware of any incidents which will expose us to apparent reputational risks related to greenhouse gas emissions from our
business operations, and we have not encountered any incidents that expose us to reputational risks related to greenhouse gas emissions in our past operations. We are fully aware that climate change will be one of the major issues of increasing international concerns. Companies, which continue to emit
high levels of greenhouse gases without dedication to reduce carbon emissions, will face mounting reputational risks. Therefore, we continue to monitor the progress of carbon emission reduction in aviation industry, and actively participate in the
annual meetings and seminars of the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) to discuss and offer our views and advice on the sustainable development of the aviation industry. We attach
great importance to global climate governance and follow industry trends to reduce greenhouse gas emissions with proactive attitude and best practices, including introducing the energy-efficient aircraft, applying refined and precise fuel-saving
measures for aircrafts, and introducing electric-powered vehicles in the airport. In addition, we are constantly tracking feasible technology or market-oriented solutions, exploring market mechanisms of carbon emission reduction and seeking
cooperation for carbon offset projects. Through our efforts, we hope to be recognized as one of the benchmark companies in reducing greenhouse gas emissions in the aviation industry. In the future, we will continue to follow and conduct research on
evolving laws, regulations and policies related to climate change, as well as industry trends, to minimize any potential reputation risks arising from and associated with greenhouse gas emissions from our operations. Technology Development We do not believe we are facing any apparent transition risks related to technological advances, based on the following factors: Major technological advances in aviation industry affecting climate change are expected to occur in two areas, namely, innovations in aircraft
technology, especially engines, on the one hand, and fuel innovation on the other hand. According to the analysis of IATA, aircraft innovation, including hydrogen and electrical power drives, wing configuration/support wing configuration and other
major breakthroughs, is expected to be commercialized after 2035. Fuel innovation mainly refers to the development and commercialized use of hydrogen energy, electrical energy and sustainable aviation fuel, among which, the development and
commercialized use of sustainable aviation fuel is key to bringing aviation industry emissions to net-zero. However, the sustainable aviation fuel is featured with high cost, low production and standardization
barriers. These two major technological advances, yet a long way to go before they can be fully developed and commercially available, may play a positive and important role in reducing carbon emissions for aviation industry if to be realized
eventually in the future. Currently, given the major technological advances are yet to be achieved, most airline companies are
implementing a number of energy-saving and carbon emission reduction improvements, such as actively promoting the application of new aircraft technology, improving operational efficiency and making infrastructure improvements, including the
improvement of air traffic management, flight operation management and ground operation management. In this regard, we keep following the industry trend, optimizing flight efficiency, reducing aircraft weight, promoting replacement for Auxiliary
Power Unit (APU), and introducing electric-powered vehicles at the airport to strengthen ground operation management. Therefore, we do not believe we are facing any apparent transition risks related to technological advances for climate change. Market Trend We do not
believe we are facing any apparent transition risks associated with market trends in aviation industry. In addition to the emission
reduction measures mentioned above such as technological advances and operational efficiency improvement, the aviation industry sees a market trend of exploring market-oriented carbon offset projects. Currently, feasible carbon offset projects
include industrial carbon reduction projects, renewable energy projects, forestry projects, industrial greenhouse gas compensation projects, natural carbon reduction solutions, methane capture and use projects, etc. In line with the market trend, we
are exploring innovative mechanism in carbon emission reduction and carbon trading, exploring the feasibility of leveraging carbon capital markets and carbon financial instruments, as well as hedging carbon transaction costs, and seeking cooperation
for carbon offset projects. Therefore, we do not believe we are facing any apparent transition risks associated with market trends in aviation industry. Material Litigation Risk We have not had any climate change-related litigation since the inception of our Company. Also, we are not aware of any risk of potential
litigation related to climate change for the time being.  33




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However, with evolving and increasingly stringent international, national or local laws and
regulations against greenhouse gas emissions, and increasing attention drawn by the climate change issue from respective regulators, groups or individuals, we, as an airline company operating domestic and international routes, do not rule out the
possibility that we may be involved in relevant administrative investigations or even lawsuits related to climate change domestically or in other jurisdictions, and be held liable, fined or subject to compensation, damages or other consequences in
the future. We will continue to monitor if any of such proceedings are threatened or contemplated, and in the case of any litigation
related to climate change, we will respond actively and try to minimize adverse consequences and reduce relevant losses. We endeavor to gain an in-depth understanding of the laws and regulations as well as the
litigation patterns in the jurisdiction where the litigation takes place, conduct fact-finding, actively cooperate with local governmental and regulatory authorities, make necessary rectifications, and engage experienced local lawyers to defend the
interests of the Company, or to resolve disputes through alternative dispute resolution such as settlement and mediation. Compliance Cost Our costs to comply with laws and regulations related to climate change overseas are the costs arising from the carbon allowance compliance
clearances to the EU regulatory authorities, and we completed such clearances to the EU regulatory authorities on schedule, paying a total of approximately EUR74 thousand from 2012 to 2020. Our costs to comply with laws and regulations related
to climate change in China are the costs arising from the carbon allowance compliance clearances to Shanghai Municipal Ecological Environment Bureau, and we purchased carbon allowances and carried out China Certified Emission Reductions (CCER)
trading following the requirement of the local authority, paying a total of approximately RMB9.7 million from 2013 to 2020. C. Organizational
Structure See the section headed Item 4. Information on the Company - History and Development of the Company. D. Property, Plant and Equipment Fleet As of December 31, 2020, we operated a fleet of 734 aircraft, including 725 passenger aircraft, most with a seating capacity of over 100
seats and 9 business aircraft held under trust. In 2020, we introduced 13 aircraft of major models. With the introduction of new aircraft, such as A350-900, B787-9 and
A320NEO, our fleet age structure has remained young. We plan to continue to expand our scale in the future and to adjust and optimize our
route network, thereby increasing our competitiveness and ability to create more attractive products and services to meet the needs of the market. Existing Fleet The following table sets forth the details of our fleet as of December 31, 2020:  UnitsNo. Model

Self-
owned


Under
finance lease


Under
operating
lease


Sub-
total


Average
fleet age
(Years)1

B777-300ER


10



10



0



20



4.92

B787-9


3



7



0



10



1.93

A350-900


1



7



0



8



1.54

A330 series


30



21



5



56



7.1Total number of wide-body aircraft


44



45



5



94



5.65

A320 series


137



127



72



336



8.06

B737 series


102



73



117



292



6.6Total number of narrow-body aircraft


239



200



189



628



7.47

ARJ21


2



1



0



3



0.2Total number of regional aircraft


2



1



0



3



0.2Total number of passenger aircraft


285



246



194



725



7.1Total number of business aircraft held under trust














9Total number of aircraft














734  34




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The table below sets forth the daily average utilization rates of our jet passenger aircraft
for the year ended December 31, 2020:  2020(in hours)B777-300ER


7.36B787-9


6.46A350-900


6.51A330 Series


5.64A320 Series


6.15B737 Series


5.80ARJ21


2.72 Most of our jet passenger aircraft were manufactured by either Airbus or Boeing Company. On July 9, 2015,
we entered into a purchase agreement with Boeing Company to purchase fifty new Boeing B737 series aircraft which are expected to be delivered to us in stages from 2017 to 2019. On August 14, 2015, we also entered into a purchase agreement with
Airbus SAS to purchase fifteen new Airbus A330 series aircraft, which are expected to be delivered to us in stages from 2017 to 2018. On April 28, 2016, we entered into a purchase agreement with Boeing Company to purchase 15 B787-9 aircraft, which are expected to be delivered to us in stages from 2018 to 2021. On the same day, we also entered into a purchase agreement with Airbus SAS to purchase 20 Airbus
A350-900 series aircraft, which are expected to be delivered to us in stages from 2018 to 2022. On August 30, 2019, we entered into an aircraft purchase agreement with Commercial Aircraft Corporation of
China Limited to purchase 35 ARJ21-700 aircraft, which are single-aisle regional aircraft with medium and short range and are expected to be delivered to us in stages from 2020 to 2024. Future Fleet Development Our aircraft acquisition program focuses on aircraft that will modernize and rationalize our fleet to better meet the anticipated requirements
of our route structure, taking into account aircraft size and fuel efficiency. Our aircraft acquisition program, however, is subject to the approval of the CAAC and the NDRC. Older aircraft models of high energy-consumption will be surrendered as
appropriate. Details of the expected fleet plan from 2021 to 2023 are as follows:  2021E


2022E


2023EIntroduction


Retirement


Introduction


Retirement


Introduction


RetirementModelA320 Series


27



6



34



5







4A330 Series






















A350 Series


4







8











B737 Series






3







4



46



12B787 Series


5



















ARJ Series


6







8







9



Total


43



9



52



9



57



16 Notes:  (1)
We and our suppliers have engaged in proactive negotiation and adjusted the progress for the introduction of
aircraft under the influence of the COVID-19 pandemic. The planning for the introduction and retirement of aircraft will be subject to timely adjustment based on the changes in external environment, market
conditions and our flight capacity allocation. The timing for resumption of operation of B737 MAX 8 and future deliveries remains uncertain. As of December 31, 2020, according to confirmed orders, we planned to introduce nine aircraft and retire 21 aircraft in 2024. The actual quantity and time of the introduction and retirement of any of these aircraft or any additional aircraft may depend on such factors
as general economic conditions, the levels of prevailing interest rates, foreign exchange rates, the level of inflation, credit conditions in the domestic and international markets, conditions in the global aviation industry, our financial condition
and results of operations, our financing requirements, and the terms of any financing arrangements, such as leases, and other capital requirements. We believe that our aircraft acquisition plan will help us accomplish our expansion plans while
maintaining an efficient fleet and ensuring alternative sources of supply.  35




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Fleet Financing Arrangements We generally acquire aircraft through internal funds, long-term capital leases or operating leases. Under the terms of most capital leases, we
generally are obligated to make lease payments that finance most of the purchase price of the aircraft over the lease term. Upon the expiration of the lease term, we must either purchase the aircraft at a specified price or pay any amount by which
such price exceeds the proceeds from the disposition of the aircraft to third parties. Alternatively, some capital leases provide for ownership of the aircraft to pass to us upon satisfaction of the final lease payment. Under capital leases,
aircraft are generally leased for approximately the whole of their estimated working life, and the leases are either non-cancelable or cancelable only on a payment of a major penalty by the lessee. As a
result, we bear substantially all of the economic risks and rewards of ownership of the aircraft held under capital leases. Operating leases, however, are customarily cancelable by the lessee on short notice and without major penalty. Leases in
which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Due to the adoption of IFRS 16 Leases, long-term capital lease and operating leases are both classified as leases
in our financial statements. For details of the impact of IFRS 16 Leases on us, please refer to the section headed Critical Accounting Policies under Item 5. Operating Facilities As of
December 31, 2020, we (including subsidiaries and branches) had operations on 660 parcels of land, occupying a total area of approximately 4.1 million square meters. In addition, as of December 31, 2020, we (including subsidiaries and
branches) owned approximately 2,161 buildings. We and our major subsidiaries have obtained the land use rights certificates and building ownership certificates for most parcels of land and buildings, and are currently in the process of applying for
the certificates with respect to the remaining 16 parcels of land and 167 buildings. We did not have any environmental issues that may have a material impact on our utilization of the assets in 2020. Item 19. Exhibits The following are filed as
exhibits hereto:  12.1

Certification of the President pursuant to Rule 13a-14(a).12.2

Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).13.1

Certification of the President pursuant to Rule 13a-14(b).13.2

Certification of the Chief Financial Officer pursuant to Rule 13a-14(b).  36




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SIGNATURES The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and that it has duly
caused and authorized the undersigned to sign this Annual Report on its behalf. CHINA EASTERN AIRLINES CORPORATION LIMITED  By:

/s/ Liu ShaoyongName: Liu ShaoyongTitle: Chairman of the Board of Directors Date: January 28, 2022