China Southern Airlines : ANNOUNCEMENT ON KEY OPERATING DATA

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ANNOUNCEMENT ON KEY OPERATING DATA

This announcement is made regarding the operating data for October 2017 of the Group to be published on the Shanghai Stock Exchange.

The relevant key operating data was calculated based on the internal statistics of the Group, which may differ from the data disclosed in the relative periodic reports. Investors are hereby reminded of the risks which may result from inappropriate reliance upon or utilization of the relevant information.

This announcement is made regarding the operating data for October 2017 of China Southern Airlines Company Limited (the "Company") and its subsidiaries (collectively, the "Group") to be published on the Shanghai Stock Exchange.

In October 2017, passenger capacity (measured by available seat kilometres ("ASK")) of the Group increased by 9.87% as compared to the same period last year (a year-on-year ("YoY") basis). Of which, passenger capacity for domestic, regional and international routes increased by 6.41%, 2.63% and 19.05%, respectively as compared to the same period last year. Compared to the same period last year, passenger traffic (measured by revenue passenger kilometres ("RPK")) increased by 10.45%. Of which, passenger traffic for domestic, regional and international routes increased by 5.90%, 14.48% and 22.50%, respectively as compared to the same period last year. The passenger load factor was 82.00%, representing an increase of 0.43 percentage point as compared to the same period last year. Of which, the passenger load factor for domestic routes decreased 0.40 percentage point, and the passenger load factor for regional and international routes increased 8.02 percentage points and 2.27 percentage point as compared to the same period last year, respectively. The Group has launched Xining - Changsha - Kuala Lumpur - Changsha - Xining route (four flights per week), Qingdao - Fuzhou - Jakarta - Fuzhou - Qingdao route (three flights per week), Xiamen - Macau - Xiamen route (seven flights per week), Changchun -Nanjing

• Changchun route (fourteen flights per week) and Hangzhou - Xi'an - Hangzhou route (seven flights per week) since 29 October 2017 and Dalian - Fuzhou - Jakarta - Fuzhou - Dalian route (four flights per week) since 30 October 2017.

  In terms of cargo operations, in October 2017, cargo capacity (measured by available tonne kilometers ("ATK") - Cargo and Mail) increased by 6.89% as compared to the same period last year. Cargo and mail traffic (measured by revenue tonne kilometres ("RTK") - Cargo and Mail) increased by 6.80% as compared to the same period last year. The cargo load factor was 54.14%, representing a decrease of 0.04 percentage point as compared to the same period last year.

  In October 2017, the Group had introduced 8 aircraft, including one A330-300 aircraft, one A321 aircraft, one A320 aircraft, five B737-800 aircraft, had terminated the lease of one A320 aircraft, two A319 aircraft. As of the end of October 2017, the Group operated a fleet of 746 aircraft with 268 aircraft self-owned, 212 aircraft under finance lease and 266 aircraft under operating lease.

  KEY OPERATION DATA OF OCTOBER 2017

  Capacity	October 2017			Cumulative 2017
  	Amount	Month-on- Month ("MoM") Change (%)	YoY Change (%)	Amount	YoY Change (%)
  RPK (in million)
  Domestic	13,799.87	3.58	5.90	133,094.72	10.02
  Regional	262.46	10.18	14.48	2,425.35	-8.79
  International	5,938.30	6.30	22.50	55,777.96	15.94
  Total	20,000.63	4.46	10.45	191,298.03	11.38
  RTK (in million)
  Domestic	1,360.08	0.89	3.73	13,101.34	8.50
  Regional	25.51	9.35	13.94	232.37	-7.14
  International	977.37	2.90	18.14	9,219.49	18.74
  Total	2,362.96	1.80	9.35	22,553.21	12.27
  RTK - Cargo and Mail (in million)
  Domestic	139.37	-12.86	-10.28	1,392.07	-1.87
  Regional	2.28	6.57	9.83	19.85	14.34
  International	451.68	-0.76	13.45	4,331.87	22.25
  Total	593.32	-3.87	6.80	5,743.79	15.35
  Passengers carried (in thousand)
  Domestic	9,496.62	4.93	6.16	90,234.33	9.65
  Regional	207.47	13.80	16.57	1,929.82	-3.27
  International	1,325.40	6.00	20.86	12,723.30	9.94
  Total	11,029.49	5.21	7.92	104,887.45	9.42
  Cargo and mail carried (in thousand tonnes)
  Domestic	88.17	-10.56	-8.64	861.25	-1.50
  Regional	2.00	6.93	7.78	17.75	12.91
  International	52.02	-0.38	13.45	491.33	20.81

  Total

  142.20

  -6.87

  -1.41

  1,370.33

  5.67

  Capacity	October 2017			Cumulative 2017
  	Amount	MoM Change (%)	YoY Change (%)	Amount	YoY Change (%)
  ASK (in million)
  Domestic	16,692.24	1.80	6.41	161,212.53	7.82
  Regional	338.86	4.36	2.63	3,192.57	-11.69
  International	7,359.38	4.12	19.05	68,239.04	14.31
  Total	24,390.48	2.53	9.87	232,644.13	9.31
  ATK (in million)
  Domestic	1,888.68	1.34	4.52	18,393.42	6.60
  Regional	39.30	5.16	3.29	371.40	-12.23
  International	1,363.11	1.73	15.69	12,966.83	15.40
  Total	3,291.10	1.55	8.86	31,731.65	9.74
  ATK - Cargo and Mail (in million)
  Domestic	386.38	-0.43	-2.20	3,884.30	2.29
  Regional	8.81	8.04	5.65	84.07	-14.03
  International	700.77	-0.43	12.68	6,825.32	16.39
  Total	1,095.96	-0.37	6.89	10,793.68	10.60

  Load Factor	October 2017			Cumulative 2017
  	Figure (%)	MoM Change (Percentage Point)	YoY Change (Percentage Point)	Figure (%)	YoY Change (Percentage Point)
  Passenger Load Factor (RPK/ASK)
  Domestic	82.67	1.42	-0.40	82.56	1.65
  Regional	77.45	4.09	8.02	75.97	2.42
  International	80.69	1.65	2.27	81.74	1.15
  Total	82.00	1.51	0.43	82.23	1.53
  Cargo and Mail Load Factor
  Domestic	36.07	-5.14	-3.25	35.84	-1.52
  Regional	25.86	-0.36	0.98	23.61	5.86
  International	64.46	-0.21	0.44	63.47	3.04
  Total	54.14	-1.97	-0.04	53.21	2.19
  Overall Load Factor (RTK/ATK)
  Domestic	72.01	-0.32	-0.55	71.23	1.25
  Regional	64.90	2.48	6.06	62.57	3.43
  International	71.70	0.81	1.49	71.10	2.01

  Total

  71.80

  0.18

  0.32

  71.07

  1.60

  Notes:

• "RPK(s)" refers to the number of revenue passengers carried multiplied by the kilometers flown;

• "RTK(s)" refers to the revenue load (passenger and cargo) in tonnes multiplied by the kilometers flown;

• "RTK(s) - Cargo and Mail" refers to the revenue cargo and mail load in tonnes multiplied by the kilometers flown;

• "ASK(s)" refers to the number of seats available for sale multiplied by the kilometers flown;

• "ATK(s)" refers to the number of tonnes of capacity available for transportation multiplied by the kilometers flown;

• "ATK(s) - Cargo and Mail" refers to the number of tonnes of capacity available for the carriage of cargo and mail multiplied by the kilometers flown;

• "Passenger Load Factor" refers to RPK expressed as a percentage of ASK;

• "Cargo and Mail Load Factor" refers to RTK- Cargo and Mail expressed as a percentage of ATK - Cargo and Mail;

• "Overall Load Factor" refers to RTK expressed as a percentage of ATK.

The key operating data above was calculated based on the internal statistics of the Group, which may differ from the data disclosed in the relative periodic reports. Investors are hereby reminded of the risks which may result from inappropriate reliance upon or utilization of the information given above.

By order of the Board

China Southern Airlines Company Limited Xie Bing

Company Secretary

Guangzhou, the People's Republic of China 15 November 2017

As at the date of this announcement, the Directors include Wang Chang Shun, Yuan Xin An and Yang Li Hua as non-executive Directors, Tan Wan Geng, Zhang Zi Fang and Li Shao Bin as executive Directors; and Ning Xiang Dong, Liu Chang Le, Tan Jin Song, Guo Wei and Jiao Shu Ge as independent non-executive Directors.