Environmental Sustainability

Social Prosperity

Corporate Governance

Sustainability Governance

Based on "safety" and "governance" and combined with six major strategies, short, medium and long-term goals are formulated to implement sustainable development of the corporate.

Sustainability Governance

China Airlines is committed to its mission of “creating more wonderful moments through flying” and its vision of “Leading Asia-Pacific, Flying Worldwide.” Centered on “Safety” and “Governance,” CAL integrates its core strategies—“Fleet and Network,” “Products and Services,” and “Group Business”—to strengthen brand awareness. To enhance its sustainability image, CAL launched three action plans:

“Smart Resilience” (adapting to extreme weather and public health concern), “Localized Global Operations” (sharing Taiwan’s culture globally), “Youth Innovation” (engaging younger generations).

These six strategic directions align with the UN Sustainable Development Goals (SDGs), forming a comprehensive sustainability framework. In 2024, CAL reviewed and updated its medium- to long-term sustainability goals. The strategy is led by the Corporate Sustainability Committee under the General Manager, and overseen by the Board-level Sustainability & Risk Management Committee and the Board of Directors.

Value Creation Model

In order to embrace mutual prosperity along with our stakeholders and endeavor to create sustainable value for all stakeholders, CAL based on China Airlines’ economic, environmental, and social reporting boundaries has integrated six forms of capital (financial, natural, manufactured, intellectual, human, and social) to its corporate vision and strategy, introducing the concepts of true value to monetize the environmental and of social externality’s costs and benefits.This true value is viewed as an important reference point for corporate sustainability, and it helps all stakeholders understand the Company’s sustainability performance.

Capitals Input

Business Model

Value Creation

Item	Output		Outcome
Financial Capital	Operating revenue	178,953,945,000	Operating revenue increased by 2% compared to 2024, while traditional financial performance (EBITDA) remained unchanged from 2024.
Manufactured	Number of New Fleet Aircraft	One 777F Cargo Aircraft Seven A321neo aircraft (four owned and three leased, of which two leased aircraft have not yet completed the five-stage inspection and did not operate flight missions in 2025)	Between 2014 and 2016, we introduced ten 777-300ER passenger aircraft, achieving significant fuel savings. The 777F cargo aircraft, developed in collaboration with Boeing, is part of the same series and is equipped with GE90 engines, identical to those on the passenger aircraft. This will aid in optimizing engine management and reducing maintenance costs. After completing the differential training, flight crew members can perform flight duties, enhancing the flexibility of crew resource management. The A321neo is a new narrow-body aircraft with advantages in fuel consumption, unit cost, range, payload, and noise reduction. Its fuel-efficient design helps reduce carbon emissions and promotes environmental friendliness, enhancing our company's operational efficiency and overall competitiveness on regional routes.
	Passenger Capacity of the New Fleet	Seat capacity increased by 900 seats.	The A321neo features a newly designed cabin with diverse and innovative hardware and software, highlighting China Airlines' unique brand and competitive product advantages.
	Aircraft Maintenance Performance Indicators	Actual on-time delivery rate for high-level maintenance: 100%	Achieved the target for on-time delivery rate of advanced maintenance (100%).
	Number of incidents resulting in fatalities or total aircraft loss	0	0
	Number of Destinations (Including New Additions)	72 Passenger Destinations 33 Cargo Destinations (Including Destinations Served by Passenger Aircraft and Dedicated Freighters)	Added one new passenger service destination, PHX, in 2025. Added one new cargo destination, YYZ, in 2025.
	New Flight Destinations	Added one new passenger service destination, PHX, in 2025. Added one new cargo destination, YYZ, in 2025.	Added one new passenger service destination, PHX, in 2025. Added one new cargo destination, YYZ, in 2025.
	Global Passenger/Freight Transport Volume (RPK/FRTK)	RPK: 37,336,000,000 FRTK: 5,673,947,899	RPK increased by 0.2% compared with 2024 (37,267,000,000). Cargo transport volume reached 5,674 million ton-kilometers in 2025, an increase of 7.35% compared to 5,285 million ton-kilometers in 2024.
Intellectual	Number of Newly Launched Products or Services	One 777F Cargo Aircraft Seven A321neo aircraft (four owned and three leased, of which two leased aircraft have not yet completed the five-stage inspection and did not operate flight missions in 2025)	Fuel Conservation and Noise Reduction
	Research and Development Achievements	0	NIL
	Cost savings (such as labor and materials)	99 items	Labor savings of 61 person-months per year
	Number of Patents	1	1
	Number of R&D personnel trained	1,058	Enhance IT skills to support the development or updates of various information systems
	Revenue/Passenger Numbers Generated by Newly Launched Products or Services	787 New Aircraft Project In accordance with Boeing’s planned schedule, the 787-9 seats and related equipment entered the testing and certification phase, and First Article Inspection (FAI) acceptance meetings for the finished equipment were progressively completed. Commercial service is planned to commence in 2026. The 787-10 completed the scheduled In-Flight Technical Coordination Meeting (ITCM) and Preliminary Design Review (PDR) on time. A350 Reconfiguration Project In accordance with Airbus’s scheduled timeline, CAL hascompleted the definition of standard equipment specifications and held the Preliminary Design Review (PDR) for seats and other equipment. The Cabin Equipment Critical Design Review (CDR) is planned for 2026, after which the project will proceed to the testing and certification phase. A330-300 Wireless IFE Completed the software and hardware certification and installation of the portable onboard wireless streaming video equipment. A321neo New Aircraft Project Added three A321neo leased aircraft. In accordance with Airbus’s planned schedule, CAL completed the definition of standard equipment specifications and held the In-Flight Technical Coordination Meeting (ITCM) for cabin equipment such as seats. The Cabin Equipment Design Review (CDR) meeting is scheduled to be held this year (2026). In-house Aircraft Cabin Inspections for Passenger Pick-up New Aircraft Projects: 777-9 and A350-1000 In coordination with Boeing and Airbus scheduling, CAL completed the project kickoff meeting and selected a cabin design consultant. The plan for 2026 includes advancing cabin design work and holding the In-Flight Cabin Equipment Technical Meeting (ITCM).	787 New Aircraft Project Completed technical meetings and specification definitions for 16 787-9 and 8 787-10 aircraft. A350 Cabin Reconfiguration Project Completed technical meetings and the definition of specifications for 15 aircraft, comprising 14 company-owned aircraft and 1 leased aircraft. A330-300 Wireless IFE Equipment hardware and software certification and installation activities for all 13 aircraft in the fleet were completed. A321neo Completed the definition of standard equipment specifications for three newly added leased aircraft. Completed the reception and cabin inspection of 4 self-owned aircraft. New Aircraft Projects: 777-9 and A350-1000 Completed the kickoff meetings for 15 Boeing 777-9 and 15 Airbus A350-1000 aircraft, and proceeded with the related specifications definition and cabin design.
Human Capital	Number of New Employees of the Year	645	Continue to attract diverse talent to enhance the company's operational capacity.
	Employee Retention Rate	The employee retention rate for new hires/recruits in 2025 was 89.15%. The employee retention rate at CAL before 2025 was 94.46%.	Compared to 2024, the employee retention rate increased by approximately 2% in 2025.
	Employee Turnover Rate	4.41%	The turnover rate decreased by approximately 0.85% compared to 2024.
	Total Training Hours for Employees	427,669 hours	Facilitate educational training to support operational needs.
	Training Hours for Mid- to Senior-Level Management	13,087 hours	Conduct job-related training and provide additional development resources to enhance management skills and build consensus.
Natural	Electricity Consumption	31,679,000 kWh	2,193 kWh
	Carbon Emissions	8,074,239 tons	Carbon emissions reduction: 49,780 tons
	Waste Volume	4,854,521 kilograms	Waste reduction: 11,498 kg
	Water Consumption	105.90 tons	N/A
	Number of Green Buildings	2	Replacement of the system resulted in the loss of regenerative power information.
	Percentage of Green Buildings in Total Construction	66.67%	66.67%
	Solar Photovoltaic Investment (Increase)	Electricity generated: 369,000 kWh	Electricity savings: 369,000 kWh
	Sustainable Alternative Fuel (Increase)	10264.70 tons	Carbon emissions reduction: 27,605.18 tCO2e
Social and Relationship	Number of Public Welfare Activities	10	CAL, with social contribution as its core value, leverages its own capabilities and aviation expertise to engage in long-term public welfare initiatives. During this year’s major traditional festivals, CAL continued to care for local elderly in Taoyuan experiencing the "three losses" (disability, lack of support, and dementia) by delivering care packages to convey holiday blessings and warmth. At the same time, CAL utilized its transportation capacity to assist in the transfer and support of disaster relief supplies. In addition, to deepen sustainable development and expand public welfare impact, CAL has continuously allocated resources to multiple disadvantaged groups, foundations, and rural students, ensuring that support initiatives are sustained and achieve long-term benefits. This demonstrates the company’s commitment to corporate responsibility and promotes social well-being.
	Number of Beneficiaries	263,284
	Community activity number	18	CAL conducts annual educational activities at schools near its corporate locations and in remote rural areas. Through these initiatives, CAL actively shares aviation expertise and English teaching resources to promote local educational development and enhance international perspectives. At the same time, through beach cleanup activities and wildlife conservation advocacy, CAL concretely implements its ESG sustainability principles. CAL aims to create a positive cycle between corporate operations and community development through continuous investment, working together with society to build a sustainable future. In 2025, CAL will hold one charity basketball camp, one charity baseball camp, and one charity table tennis camp, combining sports promotion with philanthropic values to support children in courageously pursuing their dreams and taking flight.
	Number of Community Participants	28,006
	Number of External Sponsorships	45	As a member of the international community, CAL has long been committed to public welfare and humanitarian efforts, viewing corporate responsibility as a core mission. In 2025, CAL continued to participate in multinational rescue and relief efforts, leveraging its aviation expertise to support disaster relief operations for the March 28 Myanmar earthquake. CAL provided free transportation services for relief supplies to the Myanmar-Thailand region. At the same time, CAL collaborated with Médecins Sans Frontières and the 3rd Love Without Limits Medical Charity Event, actively engaging in international medical and rescue initiatives. These efforts demonstrate the company’s commitment to humanitarian values and its dedication to amplifying social impact through concrete actions. In addition, CAL has long been committed to promoting tourism in Taiwan, supporting arts and culture development, and backing various athletes in international competitions, thereby helping to enhance Taiwan’s brand image and expand its visibility on the global stage.
	Number of Brand Promotion and Advertising Projects	4	Sustainable Environmental Practices The 2026 calendar production fully implemented environmental protection measures and obtained FSC certification for the first time, with both paper materials and printing inks certified by FSC. The 2025 ITF exhibition lighted signage and inflatable balloons continued the previous year’s designs, ensuring visual consistency and resource reuse, thereby embodying the spirit of sustainability. The Public Relations Department discloses ESG awards and actual initiatives through its own platforms and the annual PR report, strengthening CAL ’s brand positioning in sustainable development. Phoenix City Launch Integrated Marketing In response to the launch of direct flights to Phoenix (PHX), CAL began rolling out two phases of print advertisements and the promotional video "The Trailblazer" starting in July. The media coverage includes outdoor media in the Taipei Metro, Taoyuan Metro, Taiwan High-Speed Rail, Xinyi, and Hsinchu commercial districts, as well as television news channels, taxi media, digital networks, and print media. Overall media reach totaled 460 million impressions, successfully driving an average load factor of nearly 80% after the commencement of operations. 2025 ITF Taipei International Travel Fair After eight months of preparation and cross-departmental coordination, the exhibition featured aerial suspended scenery combined with LINE digital stamp collection technology interaction, showcasing an innovative brand image and winning the event’s "Best Exhibition Award." The total attendance over four days reached 365,000 visitors. CAL ’s booth participation hit a recent high, distributing 22,000 challenge gifts and gaining 9,493 new LINE official friends. A total of 28,802 tickets were issued both online and at the physical travel exhibition, representing a 71.98% increase compared to last year, effectively boosting sales momentum. Zootopia 2 Special Livery Project Completed the installation of aircraft decal materials and related coordination. In October, launched the print drafts "Aircraft Painting Edition" and "Phoenix City Edition," as well as the video "Takeoff Edition." Starting in November, outdoor advertisements were placed at Shin Kong Mitsukoshi A8, reaching over 4.25 million impressions. Additionally, a documentary video was produced, supporting the visual production for a private film screening event and promotional materials for various departments, sustaining public engagement. Promotion of the 2026 Desk Calendar On October 28, a press release was issued, resulting in 20 reports by online media; the calendar promotional video received over 28,000 social media exposures and was integrated with a check-in activity at the ITF Travel Fair to enhance engagement and brand visibility.
	Brand Promotion Project Results	101,000,000
	Customer Satisfaction Results	Passenger Net Promoter Score (NPS): 73.3	According to the passenger satisfaction survey results from January to December 2025, the Net Promoter Score (NPS) reached 73.3, exceeding the target of 69 and improving from 72.5 in 2024. This demonstrates passengers’ strong recognition of CAL ’s overall service quality. Looking ahead to 2026, CAL will continue to use the passenger satisfaction questionnaire as an important management tool for service improvement, and has completed the optimization of the questionnaire’s overall framework to more accurately collect passengers' service experiences as a basis for strengthening subsequent service improvement. Additionally, the NPS target will be increased from 69 in 2025 to 70.5, as part of ongoing efforts to meet passenger expectations and to deliver a flight experience with greater competitiveness.
	Number of Customer Complaints	23,675	In 2025, CAL carried a total of 11,746,082 passengers, an increase of 281,660 passengers or 2.46% compared to 11,464,422 passengers in 2024. The number of customer complaints in 2025 was 23,675, rising by 2,905 cases or 13.99% from 20,770 cases in 2024.
	Cargo Satisfaction Results	89.1	In 2025, CAL carried a total of 11,746,082 passengers, an increase of 281,660 passengers or 2.46% compared to 11,464,422 passengers in 2024. The number of customer complaints in 2025 was 23,675, rising by 2,905 cases or 13.99% from 20,770 cases in 2024.
	Number of Cargo Complaints	0	All destinations continue to provide customers with relevant cargo services and are committed to further improving service quality.
	Number of Partners	20	Continuing to Develop National Aviation Talent
	Number of Collaborative Projects	5	Continuing to Develop National Aviation Talent
	Number of Industry-Academia Collaborations	40	Continuing to Develop National Aviation Talent
	Number of sustainable supply chain risk assessments conducted in the reporting year	121	The number of sustainable supply chain risk assessments in 2025 increased by approximately 109% compared to 2024. Scores across all four dimensions and the overall average also improved compared to last year. Among them, the average scores in the environment and society dimensions each increased by more than 5 points, and the average score for each dimension exceeded 90 points.
	Number of sustainable supply chain audits conducted in the reporting year	79	The number of sustainable supply chain audits increased by approximately 14% in 2025 compared to 2024.

True Value of China Airlines

The assessment results indicate that in 2025, CAL's traditional financial performance (EBITA) increased slightly from 2024, reaching TWD 42.99 billion. The true value generated by CAL across economic, environmental, and social dimensions amounted to approximately TWD 59.33 billion in 2025, representing an increase of approximately TWD 16.35 billion over traditional financial performance (EBITA) and TWD 4.55 billion more than the true value generated in 2024. Notably, the positive environmental impacts of “renewable energy usage” and “waste recycling and reuse” increased significantly in 2025 compared to 2024, rising by 99.54% and 14.33%, respectively.

In addition, due to the operational characteristics of the aviation industry, “greenhouse gas emissions” and “noise pollution” continued to be the primary sources of negative impacts. These negative impacts decreased by 1.47% and 22.85%, respectively, compared to 2024. The results demonstrate CAL’s active investment in environmental sustainability initiatives such as "fleet modernization," renewable energy use, and waste recycling and reuse. In response to the negative impact of greenhouse gas emissions, CAL has continued to allocate resources toward fleet renewal and has further strengthened fuel-efficiency enhancement measures through its dedicated Aircraft Fuel Efficiency Management Team to reduce greenhouse gas emission impacts.

Overall, of the true value generated by CAL in 2025, environmental external costs amounted to approximately TWD 12.73 billion, while positive impacts from economic value added and positive social externalities generated approximately TWD 29.08 billion in benefits.

Note：Materiality Metrics for External Stakeholders: Quantitative assessment of positive and negative impacts on external stakeholders.

Sustainable Development Goals

To show its determination to create value for stakeholders, CAL has established a sound sustainable management mechanism in line with 17 Sustainable Development Goals (SDGs) officially launched by the United Nations(UN) in 2016, hoping to maximize the benefits for the country, society, and all stakeholders. As a corporate citizen, CAL supports the UN's SDGs and focuses its sustainable development on 13 SDGs in accordance with the SDG Compass and related sustainability reports of the International Civil Aviation Organization (ICAO), the Air Transportation Action Group (ATAG), and the international transportation industry.

Corporate Sustainability Committee

In 2014, CAL established the "Corporate Sustainability Committee" to oversee and manage the Company’s operational impacts on the economy, environment, and People (including human rights), as well as the corresponding response measures. In 2024, the Corporate Development Office established the Sustainability Development Center, which serves as the executive secre- tariat of the Corporate Sustainability Committee, and a Chief Sustainability Officer was appointed to support and advance sustainability-related initiatives. To address the trends in corporate sustainability development and governance needs, a board-level functional committee, the "Sus- tainability & Risk Management Committee," was established in 2025 to strengthen the board's oversight and guidance on ESG-related issues. In 2025, the Corporate Sustainability Committee convened three times. The meetings were chaired by CAL ’s President, with the Chairman attend- ing as an advisor. The committee led six core value working groups and the risk management team to formulate sustainability strategies and development goals in accordance with CAL ’s Sustainability Practice Guidelines, thereby advancing corporate sustainability. The outcomes of corporate sustainability governance and external reporting information (Note 1) were submit- ted biannually by the Chief Sustainability Officer to the Sustainability and Risk Committee and the Board of Directors. Additionally, starting in 2025, the Chief Sustainability Officer provided quarterly reports on the implementation progress of the International Financial Reporting Stan- dards—Sustainability Disclosure Standards (IFRS S1/S2) to the Sustainability & Risk Management Committee and the Board.

As the highest governance body of the Company, the Board of Directors supervises and iden- tifies CAL 's impact on the economy, environment, and people (including human rights). It also established internal control and audit for due diligence of ESG information. The Board of Di- rectors delegates senior management to engage in consultations with identified impacts and stakeholders through diverse communication channels and platforms.

In 2025, the Board held 10 meetings to oversee CAL ’s due diligence and response measures regarding key significant events (Note 2), financial status, internal audit operations, safety man- agement, operational risk management, information security and personal data risk, greenhouse gas inventory and verification, climate governance reporting, human rights risks, information and communication security, and Board performance outcomes, including the results of stake- holder engagement. CAL also established the performance evaluation procedures for the Board of Directors’ supervision of the Company’s impact on the economy, environment, and people (including human rights). It convenes at least two meetings of the Remuneration Committee each year to regularly review the overall compensation and benefits policies of senior executives.

Note 1：

The ESG sustainability performance report for 2025 was approved by the Sustainability & Risk Management Committee and the Board of Directors on March 11, 2026. The disclosure content of the 2025 Sustainability Report was submitted to the Sustainability and Risk Committee on August 5, 2026, and approved by the Board of Directors on August 7, 2026.

Note 2：

Key material events include those confirmed through the grievance mechanism and communication channels with stakeholders. Depending on their nature, all verified significant events are communicat- ed and reported at the Board of Directors meetings. In 2025, the Board of Directors made a total of 68 important resolutions. For detailed information, please refer to the Annual Report, pages 95–98.

Sustainable Development Goals for Six Value Task Forces

Task Force Corresponding SDGs	Corresponding Material Issues	2025 Objectives	Key Results and Performance	Short-term Targets(2027)	Medium-term Targets (2030)	Long-term Targets(2040)
Foundation for Sustainable Development	Governance and Business Integrity Financial Performance Fleet Development and Innovation	Regularly reporting progress on ESG tasks to the Corporate Sustainability Committee and holding at least two ESG training sessions for affiliates	The SDG sustainability goals and action plans of each working group are re-viewed on a rolling annual basis. Each working group reports its implementation progress quarterly, and the Corporate Sustainability Committee reviews the groups’ execution status quarterly. To implement employee ESG awareness education and training, in addition to including it as a mandatory online course for all new hires each year, CAL conducted the "ESG Sustainable Development and Environmental Awareness Training" e-Learning program for all employees in 2025. A total of 11,763 employees completed the training. Since 2018, CAL has cumulatively provided four company-wide e-Learning training sessions on "Sustainable Development Awareness Education" for its affiliated companies through 2025. On November 25, 2025, CAL held a sustainability seminar featuring director Shu Meng-lan, who filmed the climate change and ecological documentary "Guardians of the Planet." The seminar, titled "From the News Desk to Guardians of the Planet," was attended by over 100 employees and group affiliates. Through the seminar and visual presentations, the impact of global warming on the natural environment and human life was conveyed.	Regularly reporting progress on ESG tasks to the Corporate Sustainability Committee and holding at least four ESG training sessions for affiliates	Disclosing sustainable development of airline transport affil-iates	Continuously cooperating with regulatory authorities and international trends to comprehensively disclose the boundaries of the group
Foundation for Sustainable Development		Supporting industry partners in developing sustainable capacity	In response to the IFRS Greenhouse Gas Inventory Standards, CAL conducted an introductory seminar on the Greenhouse Gas Protocol in December 2025 to enhance group awareness and establish greenhouse gas inventory capabilities. Supporting international sustainability initiatives to leverage industry influence, CAL joined the Ministry of Economic Affairs’ National Applied Research Laboratories technology team alliance, "Converting Waste Plastics into Circular Light Oil," in December 2025. This initiative advocates for the establishment of a domestic low-carbon circular polyolefin raw material supply chain.	Support international sustainability initiatives to enhance industry influence by participating in one initiative or public associations	Support international sustainability initiatives to enhance industry influence by participating in two initiatives or public associations	Support international sustainability initiatives to enhance industry influence by participating in five initiatives or public associations
Trust	Customer Satisfaction Information Security Flight Safety Management Privacy Management	Receiving ISO27701 Privacy Information Management certification in the collection, processing, and use of personal data in the Passenger Service Management Procedure (including Taiwan and EU head- quarters)	The personal data management system is established in accordance with the law and follows the ISO international standards framework, supported by tier-1, tier-2, and tier-3 documents for implementation. The "Plan-Do-Check-Act (PDCA)" concept is employed to ensure effective control and management Continuously conduct personal data inventories and carry out annual first-level self-inspections within each unit to promptly identify errors and implement improvements. In accordance with functional requirements, CAL regularly conducts comprehensive personal data protection training for all employees. This training includes personal data regulations and management guidelines, information security and personal data incident case studies, and personal data protection training for new employees. Additionally, CAL publishes a quarterly electronic newsletter on information security and personal data awareness. Establishing internal personal data audit standard operating procedures, planning the annual audit plan for the following year in the fourth quarter of each year, and reviewing the annual audit results at the "Information Security and Personal Information" Conduct drills for information security and personal data response exercises in accordance with established procedures. These drills aim to improve the effectiveness of incident reporting mechanisms and operational procedures by providing practical exercises in reporting and response processes The passenger service department, ground service department, and branch offices (Taipei, Kaohsiung, and European stations) have all obtained ISO 27701 certification for their passenger airline reservation, ticketing, and marketing business processes.	To protect passenger personal data security, CAL has expanded the scope of personal data collection, processing, and utilization verification within the "Passenger Service Management Procedure" and continues to maintain ISO 27701 Privacy Information Management certification.	Continuously maintain the validity of the ISO 27701 Privacy Information Management certification.	Continuously maintain the validity of the ISO 27701 Privacy Information Management certification. In compliance with regulations, international trends, and the company’s operational status, CAL continuously adjusts its personal data management system on a rolling basis to reduce the risk of personal data leakage.
		Increasing the cargo service customer satisfaction to 89 points	In 2025, the cargo customer satisfaction score was 89.1.	Customer Satisfaction of Cargo Transport
			In 2025, the cargo customer satisfaction score was 89.1.	89 points	89 points	90 points
		Publishing the results of flight operations studies to improve the technical capacity of the aviation industry	Hosted the 2025 Aviation Security Seminar Co-organizing the "2025 International Aviation Management Summit": CAL presented a special report on the impact of GNSS interference on flight operations, sharing practical experience in operations and risk management. CAL also engaged in exchanges with international aviation authorities and industry stakeholders. Through continued advancement in flight safety research and international collaboration, CAL aims to strengthen operational resilience, reinforce a safety culture, and actively promote passenger safety and the company’s sustainable development. Domestic Aviation Safety Seminars: "Ground Safety Management Seminar" and "Affiliated Companies and Agents Security Meeting."	Public Disclosure or Exchange of Aviation Research Results to Enhance the Techno- logical Capabilities of the Aviation Industry	Developing innovation plans with other airlines to drive innovation momentum	Expanding collaborative research projects with do-mestic and international transportation peers and manufacturers/ suppliers to enhance environmental performance
		Continuing to pass IOSA certification standards and improve the safety management system	After successfully obtaining the 12th IOSA recertification audit in 2025, CAL is required to undergo recertification every two years. CAL is currently actively preparing for the new, more rigorous Risk-based IOSA certification method introduced by IATA, scheduled for 2026, to continuously meet the highest international safety standards. To strengthen the safety awareness of all employees and enhance the recognition of CAL ’s safety culture, as well as to promote the company’s safety policies, safety objectives, and safety performance indicators, CAL completed training courses in Safety Risk Management (SRM), safety incident investigation, and safety champions in 2025, with a total of 264 participants completing the training. In 2025, to deepen supervisors’ understanding of the Safety Management System (SMS), enhance familiarity with the company-wide safety reporting system, and improve knowledge of anonymous report handling and the application of a just culture, CAL conducted advanced online SMS training for frontline supervisors in domestic operational units. Through continuous training, CAL aims to further advance safety management.	Continuing to pass IOSA certification standards and improve the safety management system (SMS)	Continuing to pass IOSA certification standards and improve the company safety culture	In consideration of safety regulations and international requirements, we continue to pass rigorous safety certification standards
		Promoting a smart airport: Establish a smart airport at Terminal 3 of Taiwan Taoyuan International Airport and increase customer satisfaction with digital and innovative technology application High-speed ICT network: Set up a dedicated optical fiber and terminal system network to increase data and audio connection performance and increase operating efficiency Continuous improvement of disaster recovery plans: Provide on-site redundancy with sufficient hardware and software capacity to respond to anomalies in the core database system and ensure high availability of the database system	Promoting Smart Airports: Apple AirTag Baggage Tracking Application: Passengers who used AirTag were able to query the accessory’s location through Apple’s “Find My” feature. By integrating with existing airline baggage systems and, via the website or at service counters, sharing passengers’ AirTag information with airlines, the system helped to locate lost or delayed baggage. Went live in April 2025. AI Customer Service Upgrade: The upgraded online customer service system incorporates a generative AI platform that utilizes semantic analysis and logical reasoning technologies. This advancement overcomes the limitations of traditional keyword matching, enabling a deeper understanding of passengers’ diverse and complex inquiries, and providing responses and recommendations that better meet their needs. The system went live in May 2025. Tibi Ground Service Assistant: The generative AI platform (Dago), trained using operational manuals, ground service regulations, and the new membership system Q&A, employs a team+ service channel interface to provide a conversational AI assistant. This tool supports the Ground Services Department and ground staff across branches in real-time queries regarding operational regulations and passenger inquiries, reducing search and communication costs while enhancing frontline service quality and operational efficiency. It was launched in August 2025. Transparent Display Bidirectional Translation System:Implemented AI real-time voice translation equipment, integrating generative artificial intelligence and speech recognition technologies to enhance cross-language communication efficiency and improve passenger service quality. Work commenced in May 2025 and was completed in December 2025. AI Interactive Virtual Humans: Generative AI was used to create virtual customer service representatives Aria and Miles, who debuted at the ITF Taipei International Travel Fair. Through a large transparent screen, visitors were able to interact with the virtual representatives for real- time responses and photo opportunities. The exhibition was completed in December 2025 at the Taipei and Kaohsiung travel fairs. Subsequent plans include installation to provide services in the VIP lounges. Smartphone Baggage Check-in Service: The Airport Authority Hong Kong (AAHK) requires airlines operating more than five flights daily at Hong Kong International Airport to comply with the implementation deadline for the Flight Token Journey and to cooperate with the related policies of the Authority. Completed in September 2025. VIP Lounge Digitalization: After passengers log into the member area, they can use the lounge services to send lounge invitations, reserve shower rooms, check the crowd density of each lounge, and order food via table-side QR code scanning. Completed in November 2025. Airport Notice Electronic Version Design: In response to the policy prohibiting passengers from using power banks on board, CAL designed an A4 vertical notice and a horizontal layout for the Flight Information Display System according to the requirements of the Ground Services Department, and provided a power bank prohibition symbol. Deployed in March 2025. High-Speed Information and Communication Network: Continuing to upgrade domestic backbone network equipment to meet the future high-speed connectivity requirements of servers. In 2025, CAL replaced a total of 12 high-speed network switches for the headquarters’ external internet connection, upgrading to a 10G bandwidth network to support the new email system and various Microsoft services. Continuous Improvement of the Disaster Recovery Plan: CAL continues to expand the application scope of the cloud disaster recovery system, optimize automated processes to shorten recovery time, and regularly conduct disaster recovery drills to verify the effectiveness of the plan. Completed in December 2025.	Information Security and AI Trends: Information security remains a top priority. In response to the rise of AI technologies, particularly agentic AI, CAL will strengthen defenses against AI-related attacks and continue to invest in information security protection. AI Implementation and Application: Continuing with the 3E process (Explore, Empower, Enrich), CAL will integrate generative AI and predictive AI, and promote on-premises AI deployment to enhance the adoption of AI applications across the enterprise. Mobile Applications and Edge Computing: Emphasizing edge computing in mobile device applications, CAL will introduce AI components into mobile devices in the future to reduce reliance on the cloud and enhance real-time responsiveness. Virtual Employees and Digitally Empowered Employees: CAL implements virtual employee applications through various internal AI assistants and actively promotes the use of M365 tools and Copilot applications. By continuously offering related training courses, CAL supports employees in their digital transformation. External AI Services: Passenger services have already implemented AI customer service and will further establish dynamic services related to transactions. AI agent services such as "reservation and ticketing" and "itinerary management" are expected to launch in 2027. In cargo, the "cargo status tracking" services will be launched first, and functionality will then be gradually developed with "text-based booking" as the target.	Promoting smart tourism: Achieving horizontal and vertical integration of tourism-related industries to provide a one-stop smart travel eco- system. Evaluate the adoption and applications of new technologies and continuously optimize and expand the disaster recovery capacity	Promote smart airports: Expand the application of new technologies and passenger- sharing platforms to more overseas operating terminals, and actively collaborate with airports, suppliers, or other innovative technology companies.
Human Resources	Attracting, Cultivating, and Retaining Diverse Talent Labor Relations and Communication Occupational Safety and Health	Organizing four expert seminars that provide an opportunity for internal crossdisciplinary networking	In 2025, CAL held four aviation expert sharing sessions covering topics such as passenger transport, maintenance, sales promotion, and public relations event man-agement, with a total participation of 502 attendees.	Between 2026 and 2027, six internal aviation knowledge-sharing sessions were conducted, with a total participation of 600 attendees.	Between 2026 and 2030, CAL will conduct a total of 15 inter-nal aviation knowledge-sharing sessions, with cumulative par- ticipation reaching 1,800 attendees.	From 2031 to 2040, CAL will conduct a total of 30 internal aviation knowledge- sharing sessions, with cumulative participation reaching 3,600 attendees.
		Optimizing CAL’s aviation management talent training mech- anisms	Optimizing talent pools for different levels of management (including a master tal-ent pool, management training courses, and advanced management courses) and re-lated training mechanisms to develop talent for the company over the long term and lay the foundation for passing on knowledge and experience	The number of avia-tion management talents trained reached 50 in 2026–2027.	The cumulative number of CAL’s aviation management talent training reaching 150 individuals by 2030.	The cumulative number of CAL’s aviation management talent training reaching 400 individuals by 2040.
		Percentage of female managers reaching 26%	The proportion of female executives at CAL has gradually increased to 30.76% as of 2025.	Percentage of female executives reaching
		Percentage of female managers reaching 26%		26%	27%	30%
Cooperation	Sustainable Supply Chain Management	Sustainability Risk Assessment Survey (SAQ): 100% of key first-tier suppliers and 20% of all first- tier suppliers. Purchasing units shall include ESG performance as 5% of the procurement evaluation criteria: evaluation plans shall be determined based on individual cases. Percentage of suppliers signing the "Commitment to Forest and Biodiversity Conservation Compliance": upon contracting new suppliers and renewing contracts with existing suppliers.	Sustainability Risk Assessment Survey (SAQ) Risk Assessment Coverage: 100% of critical first- tier suppliers, 55% of all first-tier suppliers. Purchasing units shall include ESG performance as 5% of the procurement evaluation criteria: evaluation plans shall be determined based on individual cases. Achieve 100% compliance during the signing of new supplier contracts and the renewal of existing supplier contracts.	SAQ for critical tier-1 suppliers has achieved a risk assessment ratio of 100%. All tier-1 sup-pliers have reached 20%. Before mak-ing a pur- chase, the purchasing unit should establish a selection plan that takes into account the specific case. The plan should include ESG-related issues as at least 5% of the evaluation criteria. Both new suppliers sign-ing contracts and existing suppliers re-newing con-tracts should be obligated to comply with the commitments of the "Forest and Biodiver- sity Conserva-tion Com-mitment".	The coverage rate of all critical tier-1 suppliers reached 100%, with 40% of first-tier SAQ suppliers undergoing risk assessments. Additionally, 30% of non-tier-1 critical suppliers were subject to risk assessments. Include at least 5% ESG performance in procurement evaluation criteria for 40% of purchasing units. 40% of suppliers signing contracts should be obligated to comply with the commitments of the "Forest and Biodiversity Conservation Commitment".	Perform 100% SAQ risk assessment for both critical tier-1 suppliers and critical non-tier-1 suppliers. Include at least 5% ESG performance in procurement evaluation criteria for 100% of purchasing units. 100% of suppliers signing contracts should be obligated to comply with the commitments of the "Forest and Biodiversity Conservation Commitment".
Cooperation	Sustainable Supply Chain Management	Establish a roster of non-tier-one key suppliers. Supplier Audit Coverage: 100% of critical Tier 1 suppliers and high-risk suppliers Develop a comprehensive supply chain improvement measures and capacity building programs, aiming to implement 50% of improvement measures and 50% of capacity building programs.	Completed the establishment of a supplier list for non-tier-one key suppliers accounting for 5%. Review coverage rate for key tier-one suppliers and high-risk suppliers: 100% Develop a comprehensive supply chain improvement measures and capacity building programs, aiming to implement 50% of improvement measures and 50% of capacity building programs.	Optimize the risk anagement for sus- tainable supply chain, assess 100% of critical Tier-1 suppliers and high-risk suppliers, and create a list of critical non-Tier-1 suppliers. Develop a comprehensive supply chain improvement measures and capacity building programs, aiming to implement 50% of improvement measures and 50% of capacity building pro- grams.	Continuously optimize risk management measures for sustainable supply chain policies, completing audits of 100% of key first- tier suppliers and high-risk suppliers, as well as audits of 30% of non-first-tier key suppliers. Develop a comprehensive supply chain improvement measures and capacity building plan, aiming to implement 100% of improvement measures and 100% of capacity building measures.	Assess 100% of both critical tier-1 suppliers and critical non-tier-1 suppliers. 100% implementation of improvement measures for high- risk suppliers to ensure regulatory compliance.
Environment	Climate Change Mitigation and Adaptation Energy Management Environmental Operational Efficiency and Resource Management Green Services and Sustainable Catering Biodiversity	Improving annual aviation fuel efficiency by 1.5% (flight operations) Used SAF : 0.5%	Maintain leading position among Asia Pacific airlines with fuel efficiency at 0.2292 tons per 1,000 RTK. Implemented 11 SAF improvement plans. Achieved the 0.5% SAF usage target.	Aviation fuel efficiency improves by 1.5% annually, maintaining zero carbon growth since 2020, with a target of achieving net zero carbon emissions by 2050 (Flight Operations)
				Used SAF
				0.5%	5%	40%
		Reducing carbon emissions in ground operations by 5% compared to 2023	Carbon emissions from ground operations increased by 3% compared to 2023. Implemented 89 environment and energy improvement plans	Reduction in ground operations' carbon emissions compared to 2023:10%	Reduction in ground operations' carbon emissions compared to 2023:15% Renewable energy installation capacity has reached contracted capacity:10%	Reduction in ground operations' carbon emissions compared to 2023:60% Renewable energy installation capacity has reached contracted capacity:15%
		Reducing general waste (non-recyclable) by 7% compared with 2018	Decreased output in 2025 by 32% compared to 2018 Enhancing resource recycling through Management by Walking Around	Reducing general waste (non recyclable) compared with 2018
				10%	12%	15%
		Increasing indus-trial waste recy-cling ratio to 45%	Industrial waste recycling ratio reached 35.8% in 2025 Renovate the temporary storage area for construction waste and optimize its layout.	Industrial waste recycling ratio
		Increasing indus-trial waste recy-cling ratio to 45%		47%	50%	58%
		Reducing water consumption from ground operations by 7% compared to 2018	Reduced water consumption from ground operations in 2025 by 28.55% compared to 2018 Review and optimize the irrigation process and timing.	Reduced water consumption from ground operations compared to 2018
				8%	10%	12%
		Reducing paper consumption by 22% compared to 2018	Reduced paper consumption in 2025 by 55.2% compared to 2018 Continuously promote the digitization of cabin service and air quality operation processes.	Reducing paper consumption compared to 2018:40%	Reducing paper consumption compared to 2018:50%	Reducing paper consumption compared to 2018:52%
		Embargoing transport of en-dangered species and prohibiting use of illegal spe-cies as food in-gredients	CAL did not transport illegal wild animals and plants We expanded our collaboration with the Forestry and Nature Conservation Agen-cy,commissioning the local Saisiyat tribe to assist with reforestation and nurturing efforts. We increased the adoption area by 3.5 hectares in 2025, and continue to support the maintenance of the sustainable tourism hotspot: the Jialishan Trail.	Embargoing transport of endangered species and prohibiting use of illegal species as food ingredients Since 2023, we at CAL have participated in and implemented a total of biodiversity conservation activities or initiatives:3	Embargoing transport of endangered species and prohibiting use of illegal species as food ingredients Since 2023, we at CAL have participated in and implemented a total of biodiversity conservation activities or initiatives:4	Embargoing transport of endangered species and prohibiting use of illegal species as food ingredients Since 2023, we at CAL have participated in and implemented a total of biodiversity conservation activities or initiatives:10
		Reducing total in- flight waste by 33% compared to 2018.	Total in-flight waste in 2025 increased by 7.8% compared to 2018. Note: The original per capita in-flight meal waste target has been consolidated into the total in-flight waste target.	Reduction of in-flight waste compared to 2023: 10%	Reduction of in-flight waste compared to 2023: 25%	Reduction of in-flight waste compared to 2023: 50%
Society	Social Feedback and Engagement	Supporting international initiatives and organizing at least one long-term charity project	In 2025, CAL continued to focus on international humanitarian issues in response to global developments, engaging in annual cooperative sponsorship with the international relief organization Médecins Sans Frontières, as well as providing long-term sponsorship for the "Love Without Limits Medical Charity Event" event. By investing corporate resources to fulfill social responsibility, CAL collaborates with society to promote sustainable values of co-creation, shared prosperity, and mutual well-being.	Supporting international initiatives and organizing at least one long-term charity pro-ject	Supporting international initiatives and organizing at least one long-term charity project	Establishing long- term cooperation with interna-tional relief organizations to organize at least one long-term charity project
		Organize at least one educational event in rural areas to promote international educational opportunities for young students.	Volunteer Teaching Activities: In 2025, CAL continued to send volunteers to four elementary schools near corporate locations and three rural elementary schools (Note 1) to deliver core aviation knowledge, thereby enhancing the quality of education in Taiwan. Charity Sport Camps: CAL organized a charity basketball camp in Taoyuan in collaboration with the P .League+ Taoyuan Pilots; a charity baseball camp in Hsinchu with players Cheng Tsung-che and Chen Po-yu; and a charity table tennis camp in Changhua with table tennis legend Chuang Chih-yuan. These three charity sports camps were all inspired by the personal experiences shared by star athletes, encouraging young players to bravely pursue their dreams.	Organize at least two educational events in rural areas to promote international educa-tional opportunities for young students.	Integrate central and local re-sources to host at least one rural education event, ensuring equal access to education for all.	Partner with international education organizations to coordinate a minimum of one rural education event, thereby improving the quality of national educa- tion.
		Organize an event aimed at promoting economic growth and providing employment assistance in rural areas, thereby enhancing social wellbeing.	In 2025, CAL specially selected locally produced plums from Xinyi Township, Nantou, Taiwan, to brew plum wine. The gift sets also feature carefully chosen Dong Ding Oolong tea from Lugu, Nantou, and Oriental Beauty tea from Taoyuan, Hsinchu, and Miaoli, fully supporting local Taiwanese small-scale farmers. Additionally, CAL has maintained a long-term partnership with The Wonderful Food to offer Taiwanese snacks in the onboard Sky Lounge. This collaboration continuously promotes local agricultural products, increases the income of farmers and producers, aims to support the development of local agriculture, and brings regional specialty products to an altitude of over 10,000 feet. CAL continues to collaborate with the Huashan Social Welfare Foundation to provide locally produced agricultural care gifts to three disadvantaged elderly groups (disabled, dependent, and dementia patients) in Taoyuan. This mutually beneficial approach aims to fulfill the commitment to equitable social welfare.	Organize an event aimed at promoting economic growth and providing employ-ment assistance in rural areas, thereby enhancing social well- being.	Boost the efficacy of sponsorship, sponsoring an event aimed at promoting regional economic growth and providing employ- ment assistance in rural areas, thereby enhancing social wellbe-ing.	Organize projects to sup-port economic development in underdeveloped regions or developing countries, enhancing em-ployment opportunities in those areas

Environmental

Social

Governance

Goal Exceeded

Goal Attained

Goal Not Attained

Note: The importance of material issues to CAL may correspond to more than one task force; table lists only most relevant task force.

Governance Structure

Board of Directors

As the highest governing organization at CAL, the Board of Directors is responsible for supervising and resolving crucial issues, guiding management, and formulating and complying with policies and rules in accordance with laws and regulations and with the powers granted by the shareholders' meetings. The composition of the Board of Directors is diverse. According to Article 198-1 of the Company Act, candidates for directors are nominated by the shareholders. The selection is meritbased and does not discriminate based on gender, nationality, or race, and directors have good qualities and expertise or experience in the management of international companies. The Company also considers the views of the China Aviation Development Foundation and the government. A total of 15 directors have been elected to the 23rd Board of Directors, including five independent directors, four of whom is female, accounting for 27% of the board. Directors are elected for three-year terms (the current term was from May 30, 2024 to May 29, 2027). CAL implements performance evaluation and reviews the special professional skills of directors as the basis for nomination for the next election. Meetings of the Board of Directors are held at least five times a year and may be convened at any time in case of important or urgent matters.

Note:

For experience / education, concurrent posts, expertise, field of experience, compliance of independence, and the operations of the Board of Directors, refer to the CAL's Annual Report.

Personal Data of Directors of the Board

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Board Diversity

CAL values the independence of directors. The Chairman and President are not the same individual or have relations such as spouses or relatives within the first degree of kinship. Directors also do not have relations within the second degree of kinship. To facilitate the objective performance of independent directors, CAL’s Articles of Incorporation stipulate that independent director may not serve more than three consecutive terms to ensure that independence is not reduced by extended association. There were no cases where the independent directors served for more than nine years. The average term of office of the directors is 5.5 years.
The independent directors possess the independence as stipulated by the competent authorities. In accordance with the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies," they do not concurrently serve as independent directors for more than three other companies. To ensure the effective implementation of board independence, CAL also evaluates the independence of external directors, setting its board independence target to be 80% of the total seats. The current independence ratio stands at 100%, which exceeds the target.

Status of diversity among the Company's current Board members

Name	Basic Composition									Industrial Experience (Note 2)	Professional Background								Professional Competence
	Title	Independence (Note 1)	Has Employee Status	Nationality	Gender	Age					Airlines	Transport	Professional services and Marketing	Financial and Finance	Construction and Engineering	Banking, Insurance and Real estate	Business and Supply	Information and Technology	Metal and Machinery	Law	Accounting	Risk Management	Sustainability-related competencies
	Title	Independence (Note 1)	Has Employee Status	Nationality	Gender	40-50 years	51-60 years	61-70 years	71-80 years		Airlines	Transport	Professional services and Marketing	Financial and Finance	Construction and Engineering	Banking, Insurance and Real estate	Business and Supply	Information and Technology	Metal and Machinery	Law	Accounting	Risk Management	Sustainability-related competencies
Kao Shing-Hwang	Chairman	Independent Director	-	R.O.C.	Male	-	-	✓	-	Industrials	✓	✓	✓	○	-	-	✓	○	○	-	○	✓	✓
Charles, C.Y., Chen	Director	Independent Director	-	R.O.C.	Male	-	-	✓	-	Industrials	-	✓	✓	○	-	✓	✓	○	-	-	-	✓	✓
Ting, Kwang- Hung	Director	Independent Director	-	R.O.C.	Male	-	✓	-	-	Industrials	-	-	✓	✓	✓	✓	-	-	-	-	○	✓	✓
Chen, Ta-Chun	Director	Independent Director	-	R.O.C.	Male	-	-	✓	-	Industrials	✓	✓	✓	○	-	-	✓	-	-	○	-	✓	✓
Chen, Maun- Jen	Director	Independent Director	-	R.O.C.	Male	-	-	-	✓	Industrials	-	-	✓	-	○	-	✓	✓	✓	-	-	✓	✓
Chang,Gwo-Wei	Director	Independent Director	✓	R.O.C.	Male	-	✓	-	-	Industrials	✓	✓	✓	-	✓	-	-	-	✓	-	-	○	○
Huang, Huei-Jen	Director	Independent Director	✓	R.O.C.	Female	✓	-	-	-	Industrials	✓	✓	-	-	-	-	-	-	-	✓	-	○	○
Huang,Shih-Hui	Director	Independent Director	✓	R.O.C.	Female	-	✓	-	-	Industrials	✓	✓	✓	○	-	-	✓	○	-	-	○	✓	✓
Wei, Chien-Hung	Director	Independent Director	-	R.O.C.	Male	-	-	✓	-	Industrials	-	✓	✓	-	✓	○	-	✓	-	-	-	✓	✓
Shon,Zheng-Yi	Director	Independent Director	-	R.O.C.	Male	-	✓	-	-	Industrials	✓	✓	○	○	-	-	○	✓	-	-	○	✓	✓
Lin, Kuo-Chang	Independent Director	Independent Director	-	R.O.C.	Male	-	✓	-	-	Industrials	-	-	✓	-	-	-	-	-	-	✓	-	✓	✓
Huang,Hsieh-Hsing	Independent Director	Independent Director	-	R.O.C.	Male	-	-	✓	-	Financials	-	-	✓	✓	-	○	-	-	-	-	✓	✓	○
Chang,Hsieh Gen-Sen	Independent Director	Independent Director	-	R.O.C.	Female	-	-	✓	-	Financials	-	-	✓	✓	-	-	-	-	-	-	✓	✓	○
Hwang Yih-Ray	Independent Director	Independent Director	-	R.O.C.	Male	-	✓	-	-	Financials	-	-	✓	✓	-	✓	-	-	-	-	✓	✓	✓
Lin, Yu-Fen	Independent Director	Independent Director	-	R.O.C.	Female	-	✓	-	-	Industrials	-	-	✓	-	-	-	-	✓	-	✓	-	✓	✓

✓Indicates the director has the capability. ○ indicates the director has some capability.

Note 1: The Board of Directors of CAL adopts the one-track system. The independent status of external directors adopts the following criteria.It must satisfy at least 4 items in following 9 items, and at least 2 items in the first 3 items :

The director must not have been employed by the company in an executive capacity within the last year.
The director must not accept or have a "Family Member who accepts any payments from the company or any parent or subsidiary of the company in excess of $60,000 during the current fiscal year", other than those permitted by SEC Rule 4200 Definitions.
The director must not be a "Family Member of an individual who is employed by the company or by any parent or subsidiary of the company as an executive officer".
The director must not be (and must not be affiliated with a company that is) an adviser or consultant to the company or a member of the company's senior management.
The director must not be affiliated with a significant customer or supplier of the company
The director must have no personal services contract(s) with the company or a member of the company's senior management.
The director must not be affiliated with a not-for-profit entity that receives significant contributions from the company.
The director must not have been a partner or employee of the company's outside auditor during the past year.
The director must not have any other conflict of interest that the board itself determines to mean they cannot be considered independent.

In addition, pursuant to Article 4 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies, the Company's independent director may not concurrently serve as an independent director of more than three other public companies.

Note 2: Classification is based on the Global Industry Classification Standard (GICS) Level 1. For the educational background and concurrent positions held by board members, please refer to CAL ’s 2025 Annual Report, p. 12-17.

Functional Committees of the Board

The Board of Directors has three functional committees: the Remuneration Committee, Audit Committee, and Sustainability and Risks Management Committee. These help the Board of Directors with its supervision and guidance when meetings are convened; in accordance with the respective organizational regulations adopted by the Board of Directors, these committees exercise the powers granted them by law to review and discuss relevant issues, then regularly submit their conclusions and recommendations to the Board of Directors for resolution. Based on the powers specified in the CAL's Remuneration Committee Charter, the Remuneration Committee periodically reviews performance evaluations and remuneration policies, systems, standards, and structures for directors and managerial officers.

General Audit Office

To enforce corporate sustainability, the General Audit Office is responsible for auditing the corporate governance system to prevent fraudulent activities and corruption. The results of audits are continually followed and required to be corrected by the given time limit. The audited cases in 2025 are summarized below by category. All of the cases have been reported to the General Audit Office.

Every year, the General Audit Office compiles an “overall evaluation” based on self assessments performed by individual departments and improvement of errors and irregularities identified in the annual audits. The overall evaluation is used to verify the effectiveness of the internal control system, and provides the basis for the “Internal Control Statement”, which will be submitted to the board of directors for review. The General Audit Office has also established a whistle-blowing mechanism to report fraudulent activities and unethical conduct. If it is found that an employee of CAL or its affiliates is misusing his/her position to take bribes or behave in violation of his/her duties for the purpose of obtaining unlawful benefits for himself/herself or others, thereby causing losses to CAL’s property or reputation, an employee or an external partner (e.g., a supplier) is encouraged to report this matter through the management mechanism or through the independent mailbox ( auditor@china-airlines.com) published on the website (Stakeholder Contact- Business Conduct) and in the Annual Report (Corporate Governance Report-Corporate Governance).

Audited Cases in 2025

Type of Cases	Number of Cases Audited	Number of Comments	Number of Corrections
Head Office	15	92	92
Branch	37	208	208
Subsidiary	10	70	70
Transaction in Derivative Products	12	None, full compliance with regulations	-
Procedures for Lending Funds and Making Endorsements/Guarantees	4	None, full compliance with regulations	-
Subsidiary Supervision and Management Operations	1	None, full compliance with regulations	-
Management of the Financial Statement Preparation Process	1	None, full compliance with regulations	-
Management Operations of the Board of Directors and Audit Committee Meetings	1	None, full compliance with regulations	-
Acquisition or Disposal of Assets Operations	1	None, full compliance with regulations	-
Information Security Inspection Operations	1	5	5
Regulatory Compliance Procedures	1	None, all complying with regulations	-
Management Operations of the Compensation Committee	1	None, all complying with regulations	-
Management of Related Party Transactions	1	None, all complying with regulations	-
Sustainability Information Management Procedures	1	3	3

CAL Group's Operation Achievements

In 2025, the global economy remained resilient amid volatility. Although the United States‘ Reciprocal Tariff policies introduced uncertainty to the trade environment, the easing of global inflation and the shift toward accommodative monetary policies by major economies effectively boosted domestic consumption and intercontinental travel demand in advanced economies. CAL monitors market trends and expands long-haul services to Europe and the United States, catering to both business and leisure travel demand, thereby maintaining high passenger load factors and revenue performance. In the cargo sector, the innovative application and development of AI servers and high-performance computing products have driven demand for the transportation of high-value electronic components. Additionally, companies’ advance stocking in response to tariff changes has further boosted export momentum in cargo transport. CAL has leveraged a dual passenger and cargo strategy to transform challenges into growth momentum during a critical period of global economic and trade changes, achieving dual growth in both passenger and cargo operations. In addition, CAL continues to implement its fleet renewal program by introducing new aircraft such as the A321neo and 777F, and has ordered 18 Boeing 787-9 passenger aircraft, 6 Boeing 787-10 passenger aircraft, 10 Airbus A350-1000 passenger aircraft, 10 Boeing 777-9 passenger aircraft, and 4 Boeing 777-8F freighters. CAL plans to gradually retire its 737-800, A330-300 passenger aircraft, and 747-400F freighters. In 2025, CAL converted options for 5 A350-1000s, 5 777-9s, and 4 777-8Fs into firm orders. These aircraft will be deployed on longhaul passenger and cargo routes to North America and Europe. Through fleet optimization and renewal, CAL flexibly adjusts passenger and cargo flight operations and strategically arranges the overall network to offer more competitive products and services that meet passenger needs, actively capturing passenger and cargo business opportunities.

In 2025, CAL’s consolidated operating revenue totaled TWD209.139 billion, comprising passenger revenue of TWD124.908 billion, cargo revenue of TWD66.831 billion, and other revenue of TWD17.400 billion. Consolidated operating profit reached TWD20.836 billion, consolidated Pretax profit was TWD20.059 billion, and net income attributable to Shareholders of the Parent company after tax amounted to TWD14.700 billion.

Operational Achievements
Parent Company-Only Financial Data

Item	2021	2022	2023	2024	2025
Passenger Revenue	60.64	254.81	1,157.23	1,279.19	1,249.08
Cargo Revenue	1,245.41	1,162.5	571.46	607.12	668.31
Other Revenue	82.36	89.91	119.48	152.48	174.00
Consolidated Operating Revenue	1,388.41	1,507.22	1,848.17	2,038.79	2,091.39
Consolidated Pretax Profit	1112.7	26.61	93.05	192.76	200.59

Unit: TWD 100 billion

Item	2021	2022	2023	2024	2025
Operating Revenue	1,321.4	1,410.7	1,616.76	1,751.82	1,789.54
Operating Cost	1,062.3	1,280.89	1,440.4	1,498.99	1,506.38
Operating Expense	65.9	70.63	110.41	125.03	128.52
Income Tax Expense (Benefit)	25.94	10.29	12.37	27.04	28.39
Total Salary Expenses	161.88	144.94	168.37	213.73	221.10
Total Employee Benefits	225.96	204.65	244.58	304.98	310.20
Total Pension	15.27	14.66	14.76	15.39	14.22

Unit: TWD 100 billion

Sustainable Revenues

Revenues from	2021	2022	2023	2024	2025
Sustainable Revenues	0	2,178,132	8,948,496	5,015,963	2,489,574
Total Revenues	132,140,000	141,069,850	161,675,533	175,182,455	178,953,945
Percentage of Sustainable Revenues	0	0	0.006%	0.003%	1.39%

Unit: TWD thousands

Product/Service Description: China Airlines' main revenue is derived from passenger and freight air transport services. In accordance with Article 6.19(d) “Passenger and Freight Air Transport” of the EU Taxonomy, aircraft operated using Sustainable Aviation Fuel (SAF) are considered eligible for sustainable economic activities under the applicable technical screening criteria. Since 2022, SAF usage has been benchmarked at 5%, with the required level increasing by 2 percentage points annually. Accordingly, China Airlines continues to expand the adoption of SAF across its operations to reduce aviation emissions, enhance decarbonization performance, and support the transition to sustainable air transport.

Sustainability Governance

Based on "safety" and "governance" and combined with six major strategies, short, medium and long-term goals are formulated to implement sustainable development of the corporate.

Sustainability Governance

Value Creation Model

Capitals Input

Business Model

Value Creation

True Value of China Airlines

Sustainable Development Goals

Corporate Sustainability Committee

Sustainable Development Goals for Six Value Task Forces

Governance Structure

Board of Directors

Personal Data of Directors of the Board

Board Diversity

Status of diversity among the Company's current Board members

Functional Committees of the Board

General Audit Office

Audited Cases in 2025

CAL Group's Operation Achievements

Operational Achievements

Parent Company-Only Financial Data

Sustainable Revenues