Financial Performance - In 2021, the company's operating revenue was RMB 74.53 billion, a decrease from RMB 136.18 billion in 2019, reflecting a significant impact from the pandemic[37]. - The company reported a net loss attributable to shareholders of RMB 16.64 billion in 2021, compared to a profit of RMB 6.42 billion in 2019, indicating ongoing financial challenges[37]. - The total operating revenue for the company reached RMB 378.20 billion, reflecting a year-on-year change of -7.24%[78]. - The net profit attributable to shareholders was a loss of RMB 50.80 billion, compared to a loss of RMB 190.04 billion in the same period last year[78]. - The total assets as of December 31, 2021, were RMB 298.38 billion, an increase from RMB 284.03 billion in 2019, showing growth in asset base despite losses[39]. - The total liabilities increased to RMB 232.55 billion in 2021 from RMB 200.26 billion in 2019, indicating a rise in financial obligations[39]. - Operating expenses rose to RMB 95.465 billion, a 12.27% increase from RMB 85.030 billion in the previous year[91]. - Fuel costs increased by RMB 5.886 billion, primarily due to rising fuel prices and consumption[92]. Operational Highlights - In 2021, Air China operated 16,000 cargo flights and transported 641 tons of COVID-19 vaccines through its cold chain logistics service[29]. - Passenger traffic reached 69.05 million in 2021, a slight increase of 0.52% compared to 68.69 million in the previous year, suggesting a recovery in demand[42]. - The total number of flights increased to 572,264, up 3.79% from the previous year[44]. - The company achieved a total of 1.59 million safe flight hours, transporting 69.05 million passengers[53]. - The company completed significant transportation tasks for major events, including the Tokyo Olympics and the Beijing Winter Olympics[53]. - The group executed 16,000 cargo flights during the reporting period, transporting 641 tons of COVID-19 vaccines through its cold chain logistics system[54]. Strategic Initiatives - The company plans to enhance its service quality and digital transformation, including the implementation of remote self-check-in and in-flight Wi-Fi across its fleet[31]. - The company is focused on optimizing its debt structure and cash flow management to mitigate risks and improve operational efficiency[31]. - The company aims to ensure flight safety as its top priority, implementing a long-term safety management mechanism and completing significant transportation tasks for major events[28]. - The company is committed to high-quality development, continuously improving service quality and compliance management[28]. - The company has a vision of being a "globally leading airline" and focuses on a hub network, cargo and passenger services, cost leadership, and brand strategy[3]. Customer Engagement - Air China integrates its frequent flyer programs under the "Phoenix Miles" brand, enhancing customer loyalty[3]. - The number of Phoenix Miles members exceeded 72.07 million, with frequent flyer contributions accounting for 56.8% of passenger revenue, an increase of 4.5 percentage points year-on-year[70]. - The self-service check-in rate remained stable at 75%, and the online customer service accuracy rate was maintained at a high level of 80%[59]. - The company introduced new products such as the "Red Tour" themed meals and an elderly-friendly version of its app to improve customer experience[59]. Governance and Management - The board of directors consists of eight members, with four being independent non-executive directors as of the latest report date[115]. - The company emphasizes compliance with corporate governance codes and actively reviews its governance policies and practices[117]. - The company has established a policy for board diversity, which is monitored by the management and remuneration committee[125]. - The audit and risk management committee is composed of independent non-executive directors, ensuring oversight of financial reporting and internal controls[131]. - The company has confirmed the independence of its independent non-executive directors in accordance with listing rules[130]. Market Position and Future Outlook - The company is committed to strengthening its market position in both domestic and international routes, leveraging its unique geographical advantages[70]. - Future performance guidance indicates a cautious outlook due to market volatility and competitive pressures[81]. - The company anticipates continued growth in China's aviation demand, supported by a large domestic market and ongoing economic recovery[82]. - The company plans to expand its market presence and enhance operational efficiency through strategic initiatives[80]. Risk Management - The company has established a clear organizational structure for risk management responsibilities, ensuring effective monitoring of significant risks[159]. - The audit committee's responsibilities include reviewing financial information, internal controls, and risk management systems[132]. - The company conducts at least one annual review of the risk management and internal control systems, reporting to the board after audit committee review[158].