Steady Operations Created Historic Results

Looking back on 2025, the global aviation industry continued to move forward amid intertwined challenges and opportunities. On one hand, rising geopolitical risks, an imbalance in the aerospace supply chain, trade barriers, and cost fluctuations tested corporate operational resilience and risk management capabilities; on the other hand, the gradual recovery of the global economy drove a steady rebound in passenger demand. In addition, the rapid development of AI and high-tech industries, along with the continuing trend of supply chain restructuring, boosted cargo demand, and under an environment of relatively stable energy prices, provided support for the operating momentum of the aviation industry.

In response to the rapid changes in the external environment, CAL has adopted a strategy centered on the parallel development of passenger and cargo businesses. Through close collaboration with the Group and supplier partners, CAL flexibly adjusted route capacity, allocated resources precisely, and continued to optimize the fleet structure and operating efficiency. In 2025, we successively introduced A321neo passenger aircraft and 777F Cargo Aircraft, strengthening regional passenger and cargo service capacity and further enhancing operating flexibility, market responsiveness, and profitability. We thank all CAL colleagues, group partners, suppliers, and customers for their support and recognition. In 2025, CAL 's overall operating performance reached another all-time high, and the three financial indicators of revenue, profit, and earnings per share (EPS) all set historic records, demonstrating CAL Group's strength in sound management, agile response, and sustained value creation.

While operational growth continues, we will further deepen the sustainable connotations of cor- porate governance. In 2025, the Board of Directors adjusted and established the "Sustainability & Risk Management Committee". Based on the operating characteristics of the air transport industry and domestic and international governance trends, it strengthened the responsibilities, reporting, and supervision mechanisms of the existing Risk Management Committee, and further integrated the operating risk, sustainable development, climate-related, and nature-related risk management functions within the corporate governance structure, so as to enhance decision-mak- ing consistency and governance effectiveness. Through a more robust governance mechanism, CAL will continue to balance operational growth, shareholder equity, and sustainable value, laying a solid and resilient operating foundation.

Integrating Sustainability into Operations, Advancing Sustainable Transformation through Action

CAL, with safety, risk management, and corporate governance as its foundation, has fully incor- porated sustainability (ESG) into its corporate development strategy and annual targets, and, through the working platform of the Corporate Sustainability Committee and its subordinate value groups, regularly formulated, implemented, and tracked short-, medium-, and long-term as well as annual sustainability targets. While expanding operations in 2025, we also effectively controlled and enhanced various environmental performance and eco-efficiency. At the same time, we continued to deepen our TCFD/TNFD-related efforts and, in response to the international sustain- ability disclosure trends of IFRS S1 and S2, strengthened the linkage between disclosure quality and management mechanisms to create long term, sound, and positive value for stakeholders.

In response to the challenges of climate change and the energy transition, CAL continued to reduce the impact of air transport on the environment and enhance the effectiveness of pas- senger and cargo service through fleet renewal, network management, improved fuel efficiency, and the addition of SAF. In 2025, we announced the introduction of 15 A350-1000 aircraft, 15 777-9 aircraft, and 8 777-8F aircraft as new-generation, highly efficient, environmentally friendly models, and launched a full-cabin upgrade program for the A350-900, enabling medium- and long-haul passenger and cargo services to continue advancing toward high-efficiency, low-car- bon, and high-quality innovative services; by the end of 2025, the A321neo fleet has reached 21 aircraft, gradually replacing the aging 737-800 models and becoming an important mainstay and environmental standard-bearer for regional routes.

In promoting sustainable aviation fuel (SAF), CAL has continued to deepen and expand its re- lated initiatives on the basis of its past achievements in leading Taiwan’s aviation industry in the early adoption of SAF and in Stakeholder Engagement, including implementing its blending target and signing Memoranda of Understanding to steadily establish a global supply chain. At the same time, we supported the government’s SAF pilot program through concrete actions and participated in consultations and actions on subsequent response strategies. CAL also drew on international trends and practices to lead the industry in Taiwan in launching the “SAF Corporate Customer Cooperation Program,” and received action support from benchmark corporate part- ners. Together, they promoted collaboration with suppliers and corporate customers to reduce scope 3 carbon emissions, marking an important milestone for cross-industry cooperation in Taiwan’s aviation sector in response to climate change.

CAL also highly values the SkyTeam "The Aviation Challenge (TAC)" for its significance in in- ternational peer benchmarking, value chain sustainability cooperation, innovative stakeholder communication, and its role in leading sustainability within Taiwan's aviation industry. Partici- pating in the TAC for the fourth consecutive year in 2025, CAL continued to introduce innovative practices built upon existing eco-friendly service elements. These initiatives included adding 40% SAF to designated flights and expanding the promotion of Taiwan’s specialty plant-based cuisine. Through its outstanding performance, CAL was honored with the "Sustainable Aviation Fuel Transition Impact Award" under the Organizational Transformation category, showcasing the concrete achievements of China Airlines in accelerating the low-carbon transition of aviation and the sustainable competitiveness of Taiwan's aviation industry value chain.

Talent is the foundation of corporate operations and sustainable development. CAL, upholding the principle of "people-oriented," has continued to devote itself to cultivating aviation profes- sionals and to creating a safe, healthy, friendly, and labor-management-harmonious workplace environment. It once again received recognition as the "Best Employer in Asia Award." With "diversity, equity, and inclusion" as our guiding principles, we promoted a number of inclusive workplace measures in 2025 that were leading initiatives among Taiwan’s peer companies. Key achievements included allowing women employees to wear pants as part of their uniforms and permitting flight attendants to wear glasses and black athletic shoes while on duty, thereby safeguarding employee health and fostering a more inclusive corporate culture.

In terms of Social Philanthropy, CAL has long leveraged its aviation transport expertise and oper- ational resources to give back to society, focusing on initiatives such as “internationalization of education,” “medical and humanitarian assistance,” “support for employment for disadvantaged groups,” and “environmental and ecological initiatives.” CAL has continuously invested in actions including education in remote areas, care for disadvantaged groups, beach cleanup environ- mental protection activities, ecological conservation, the Satoyama Initiative, and international emergency relief, and has joined with stakeholders and partners to jointly implement the United Nations Sustainable Development Goals (SDGs), moving toward the vision of “sustainability, care, and mutual prosperity.”

CAL 's achievements from many years of continuous dedication to ESG were further recognized in 2025 by authoritative domestic and international rankings, including: for the second time, it received the highest score in the global airline industry in the S&P Global Corporate Sustainability Assessment (CSA), and for the ninth time, it was selected for the S&P Sustainability Yearbook, earning the distinction of being the only airline in the world to be named in the Top 1% in the "2026 Sustainability Yearbook"; at the same time, CAL received the Taiwan Enterprise Sustainability Award (TCSA) "Taiwan Top 10 Sustainable Model Enterprises Award" for the second time, and retained the highest honor of "Best Annual Report in the Services Industry" for four consecutive years; it won the Gold Award in the "ESG Transport Sustainability Award" for two consecutive editions; and, for its support of the domestic energy transition, it was awarded the "Sustainable Development Award" by the Civil Aeronautics Administration. These affirmations are not only encouragement for CAL ’s sustainable governance and innovative practices, but also provide us with the impetus and confidence to continue improving.

Strengthening Resilience to Meet Future Challenges and Opportunities

Looking ahead to 2026, the global political and economic environment still contains many un- certainties. Geopolitical risks triggered by regional wars, fluctuations in energy prices, and the restructuring of industrial supply chains and the risk of supply chain disruptions will continue to test the operating resilience of the aviation industry. At the same time, the development of AI technology and the continued deepening of Taiwan's key position in the global supply chain will also create new growth opportunities for the passenger and cargo markets. Facing a future interwoven with challenges and opportunities, CAL and its group partners will uphold the corporate vision of "Leading Asia-Pacific, Flying Worldwide" and the service declaration of “Touching every moment”, and will continue to strengthen corporate governance, enhance operational resilience, and deepen stakeholder communication and value chain collaboration through business strate- gies of proactive planning, sound planning, and prudent risk management.

CAL will continue to implement stakeholder communication and engagement in the course of its corporate development, taking into account environmental eco-efficiency and fulfilling social responsibility, and will work with value chain partners and supply chain management to appropriately identify and address short-, medium-, and long-term sustainable development issues. From operational innovation and low-carbon transition to talent development and the co-prosperity of society and the environment, CAL will continue to enhance operational quality and expand brand value and sustainable influ- ence. We will continue to deepen CAL ’s and the Group’s development across all ESG dimensions through sound operations and sustainable actions, and create long-term, trustworthy, and happiness-oriented sustainable value and development niches for current and intergenerational stakeholders.

• Selected for the FTSE4Good Index Series for 10^th consecutive years

  CAL has been included in the FTSE4Good Index Series for ten consecutive years and has also been selected as a constituent of the Taiwan ESG Index seven times.

• 9^th time included in the S&P Global Sustainability Yearbook

  CAL achieved the highest CSA score among global airlines in 2025. In 2026, it was selected for the Sustainability Yearbook for the ninth time and received Top 1% recognition for the second time, making it the only airline in Taiwan to achieve this distinction.

• 4^th time selected for the MSCI Index

  Since 2022, CAL has been selected as a constituent of the MSCI Global Standard Index for the fourth time.

• 2^nd time receiving the Taiwan Top 10 Sustainability Model Enterprises Award

  In 2025, CAL received the TAISE “Taiwan Top 10 Sustainability Model Enterprises Award” for the second time. It has also received the Taiwan Corporate Sustainability Awards for 12 consecutive years, the Global Corporate Sustainability Award – Sustainability Reporting for seven consecutive years, and the Best Sustainability Report (Service Industry) award for four consecutive years.

• 2^nd time awarded Gold in the ESG Transportation Sustainability Award

  With a well-established ESG governance framework and concrete sustainability practices, CAL has been awarded the ESG Transportation Sustainability Award – Gold for two consecutive terms and is the only recipient recognized for “Innovation Advancement.”

• 10^th time awarded APEX Five-Star Airline Award

  CAL continues to implement its service CAL continues to implement its service declaration of “Touching every moment” and enhance operational and service quality, earning the APEX Five-Star Airline Award for ten consecutive years.