2009 Annual Results Announcement of China Southern Airlines

China Southern Airlines Company Limited (the “Company”) today presents the audited consolidated results of the Company and its subsidiaries (the “Group”), prepared in accordance with International Financial Reporting Standards for the twelve months ended 31 December 2009.

During the reporting period, the Group recorded an operating income of RMB 54,802　million, the profit attributable to equity shareholders of RMB 330 million and earnings per share of RMB 0.05. The Board of Directors of the Company　does not recommend the payment of a dividend in respect of the year 2009.

During the reporting period, given the complicated and volatile domestic and international economic environments, the Company responded and took proactive and efficient measures after careful analysis on the changes in the market situation, and strengthened safety management, thus ensuring achievement of flight safety over the whole year. The Company finally turned around through a series of measures, such as optimizing networks structure, exploring new markets, strengthening the efforts of marketing and promoting strategic transformation, enhancing cost-control as well as seeking for various policies support. The Group’s total traffic turnover was 10,067 million tonne kilometers, representing an increase of 9.4% from the same period last year. The number of passengers carried by it was 66.2803 million person-times, representing an increase of 13.8% from the same period last year. The cargo and mail carried was 861,900 tonnes, representing an increase of 3.3% from the same period last year. The utilisation rate of registered aircrafts was 9.37 hours per day, representing an increase of 0.32 hour from the same period last year. The average passenger load factor was 75.3%, representing an increase of 1.5 percentage points from the same period last year. The overall load factor was 65.2%, representing an increase of 0.8 percentage points from the same period last year.

During the reporting period, the Company achieved 122 months of consecutively safe flights, 6.53 million safe flight hours and guaranteed an air security of 186 months and was granted the “Customer Satisfaction Award” by CAAC, and the “Best Airline of China in 2009” from Skytrax, known as the Oscar of the Aviation. The Company was also awarded as the “Excellent Chinese IT-based Unit in the First Decade of the New Century”, the only airline being granted such honor.

Looking forward 2010, Chairman Si Xian Min said “with the stabilization of the international financial market, the world economy is recovering. Domestic economy will also keep an upturn momentum, as driven by the proactive fiscal policy and the moderately loose monetary policy. In addition, a series of economic restructuring, residential income improvement and domestic consumption stimulus packages taken by the government will be positive to the healthy and rapid development of the domestic aviation market. The Company will proactively boost the strategic transformation while guaranteeing the aviation security, strive to enhance its competitiveness and profitability, constantly upgrade its services standard and its brand image, and reduce the financial risks through the optimization of the assets-liability structure. The Company is confident in maintaining continuous progress in its operating results.”