UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of September 2018

Commission File Number: 001-14550

China Eastern Airlines Corporation Limited

(Translation of Registrant’s name into English)

Board Secretariat’s Office

5/F, Block A2, Northern District, CEA Building

36 Hongxiang 3rd Road, Minhang District

Shanghai, China 200335

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:  ☒ Form 20-F  ☐ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:  ☐ Yes  ☒ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):   n/a

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Certain statements contained in this announcement may be regarded as “forward-looking statements” within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company’s views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company’s views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this announcement.

CHINA EASTERN
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
Stock Code : A Share : 600115
H Share : 00670 ADR : CEA
WORLD - CLASS
HOSPITALITY WITH
EASTERN CHARM
世界品位 東方魅力
INTERIM REPORT 2018

Contents
2 Definitions
5 Company Business Introduction
6 Company Profile
8 Interim Financial Information
• Notes to the Interim Condensed Consolidated Financial Statements
47 Summary of Operating Data
50 Fleet Structure
51 Management Discussion and Analysis

Definitions
In this report, unless the context otherwise requires, the following expressions have the following meanings:
AFK means Air France-KLM. Please refer to its official website https://www.airfranceklm.com/ for more details about AFK
Articles means the articles of association of the Company
Audit and Risk Management Committee
means the audit and risk management committee of the Company
Available freight tonne-kilometres (AFTK)
means the sum of the maximum tonnes of capacity available for the carriage of cargo and mail multiplied by the distance flown for every route
Available seat-kilometres (ASK) means the sum of the maximum number of seats made available for sale multiplied by the distance flown for every route
Available tonne-kilometres (ATK) means the sum of capacity available for the carriage multiplied by the distance flown for every route
Board means the board of directors of the Company
Business Airlines means 東方公務航空服務有限公司 (Eastern Business Airlines Service Co., Ltd.*), a wholly-owned subsidiary of the Company
CAAC means the Civil Aviation Administration of China. Please refer to its official website http://www.caac.gov.cn/ for more details about the CAAC
CASC means 中國航空器材有限責任公司 (China Aviation Supplies Co., Limited*)
CEA Holding means 中國東方航空集團有限公司 (China Eastern Air Holding Company Limited*), the controlling shareholder and a connected person of the Company
CES Finance means 東航金控有限責任公司 (CES Finance Holding Co., Limited), a wholly-owned subsidiary of CEA Holding and a shareholder and connected person of the Company
CES Global means 東航國際控股（香港）有限公司 (CES Global Holdings (Hong Kong) Limited), a wholly- owned subsidiary of CES Finance and a shareholder and connected person of the Company
China Cargo Airlines means 中國貨運航空有限公司 (China Cargo Airlines Co., Limited), a controlled subsidiary of Eastern Logistics and a connected person of the Company
China Eastern Airlines, CEA, or the Company
means 中國東方航空股份有限公司 (China Eastern Airlines Corporation Limited)
China United Airlines means 中 國 聯 合 航 空 有 限 公 司 (China United Airlines Co., Limited), a wholly-owned subsidiary of the Company
Code means the Corporate Governance Code set out in Appendix 14 to the Listing Rules
CSRC means the China Securities Regulatory Commission. Please refer to its official website http://www.csrc.gov.cn/ for more details about the CSRC
Delta means Delta Air Lines Inc (IATA Code: DL), a shareholder of the Company. Please refer to its official website https://www.delta.com/ for more details about Delta
Directors means the directors of the Company
Eastern Air Finance means 東航集團財務有限責任公司 (Eastern Air Group Finance Co., Ltd.), a controlled subsidiary of CEA Holding and a connected person to the Company
Eastern Air Jiangsu means 中國東方航空江蘇有限公司 (China Eastern Airlines Jiangsu Co., Limited*), a controlled subsidiary of the Company
Eastern Air Overseas means 東航海外（香港）有限公司 (Eastern Air Overseas (Hong Kong) Corporation Limited), a wholly-owned subsidiary of the Company
2 China Eastern Airlines Corporation Limited 2018 Interim Report

Definitions
Eastern Air Wuhan means 中國東方航空武漢有限責任公司 (China Eastern Airlines Wuhan Limited*), a controlled subsidiary of the Company
Eastern Air Yunnan means 東方航空雲南有限公司 (China Eastern Airlines Yunnan Co., Limited*), a controlled subsidiary of the Company
Eastern Airlines Industry Investment
means 東方航空產業投資有限公司 (Eastern Airlines Industry Investment Company Limited*), a wholly-owned subsidiary of CEA Holding and a connected person of the Company
Eastern Logistics means 東方航空物流有限公司 (Eastern Airline Logistics Co., Limited*), a controlled subsidiary of Eastern Airlines Industry Investment and a connected person of the Company
Eastern Technology means 東方航空技術有限公司 (China Eastern Airlines Technology Co., Limited), a wholly-owned subsidiary of the Company
Freight load factor means the ratio of freight traffic volume to AFTK
Freight tonne-kilometres yield means the ratio of the sum of freight transportation and related revenue to freight traffic volume Frequent flyer program means the strategic initiative which offers reward miles to passengers who frequently fly the airlines
by accumulating flight kilometers or points thereby enhancing customers’ satisfaction level and loyalty
Group means the Company and its subsidiaries
Hong Kong Stock Exchange means The Stock Exchange of Hong Kong Limited
Listing Rules means the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange
HKSCC means Hong Kong Securities Clearing Company Ltd., which operates the Central Clearing and Settlement System (CCASS) of Hong Kong. HKSCC is a wholly-owned subsidiary of The Hong Kong Stock Exchange, where the shares of H shares investors are deposited in HKSCC
IATA means the International Air Transport Association, a major international organization formed by airlines of different countries worldwide, which coordinates and communicates government policies through aviation transportation enterprises and deals with actual operations issues. Please refer to its official website http://www.iata.org/ for more details
IFRS means the International Financial Reporting Standards
Japan Airlines means Japan Airlines Co., Ltd (IATA Code: JL). Please refer to its official website http://www.jal.com/ for more details about Japan Airlines
Juneyao Airlines means Juneyao Airlines Co., Ltd (上海吉祥航空股份有限公司),
a joint stock limited company incorporated in the PRC with limited liability, whose A Shares are listed on the Shanghai Stock Exchange (A Share code: 603885)
Juneyao Group means Shanghai Juneyao (Group) Co., Ltd. (上海均瑤（集團）有限公司), the controlling Shareholder of Juneyao Airlines
Model Code means the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules
Overall load factor means the ratio of total traffic volume to ATK Passenger load factor means the ratio of passenger traffic volume to ASK
Passenger-kilometres yield means the ratio of the sum of passenger traffic and related revenue to passenger traffic volume
Qantas means Qantas Airways Ltd (IATA Code: QF). Please refer to its official website https://www.qantas.com/ for more details about Qantas
Reporting Period means the six months from 1 January 2018 to 30 June 2018
3

Definitions
Revenue freight tonne-kilometres (RFTK)
means the freight traffic volume, the sum of cargo and mail load in tonnes multiplied by the distance flown for every route
Revenue passenger-kilometres (RPK)
means the passenger traffic volume, the sum of the number of passengers carried multiplied by the distance flown for every route
Revenue tonne-kilometres (RTK) means the total traffic volume, the sum of load (passenger and cargo) in tonnes multiplied by the distance flown for every route
Revenue tonne-kilometres yield means the ratio of the sum of transportation and related revenue to total traffic volume
SASAC means the State-owned Assets Supervision and Administration Commission of the State Council.
Please refer to its official website http://www.sasac.gov.cn/ for more details about the SASAC
SFO means the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
Shanghai Airlines means 上海航空有限公司 (Shanghai Airlines Co., Limited*), a wholly-owned subsidiary of the Company
Shanghai Airlines Tours means 上海航空國際旅遊（集團）有限公司 (Shanghai Airlines Tours, International (Group) Co., Limited*), a wholly-owned subsidiary of the Company
Shanghai Flight Training means 上海東方飛行培訓有限公司 (Shanghai Eastern Flight Training Co., Limited), a wholly-owned subsidiary of the Company
SkyTeam Airline Alliance means the SkyTeam Alliance, one of the three major airline alliances in the world. Please refer to its official website http://www.skyteam.com/ for more details about the SkyTeam Alliance
SPD Bank means Shanghai Pudong Development Bank
Supervisors means the supervisors of the Company The end of the Reporting Period means 30 June 2018
TMC means Travel Management Companies
TravelSky means 中國民航信息網絡股份有限公司 (TravelSky Technology Limited) Weight of freight carried means the actual weight of freight carried
The Board hereby presents the unaudited consolidated interim financial information of the Company and its subsidiaries for the six months ended 30 June 2018 prepared in accordance with IFRS which were reviewed and approved by the Board and the Audit and Risk Management Committee on 30 August 2018), with comparative figures for the corresponding period in 2017.
As the Company completed the transfer of 100% equity interest in Eastern Logistics to Eastern Airlines Industry Investment (a wholly- owned subsidiary of CEA Holding the controlling shareholder of the Company) in February 2017, the interim condensed consolidated statement of profit or loss and other comprehensive income, interim condensed consolidated statement of cash flows as well as the financial information under corresponding notes to the financial statements of the Group and the operating data of the Group for the first half of 2017 still included the corresponding data of Eastern Logistics in January 2017. The interim condensed consolidated statement of financial position, interim condensed consolidated statement of changes in equity and financial information under corresponding notes to the financial statements of the Group and the fleet data of the Group as of the end of the first half of 2017 and the end of the first half of 2018 did not include the corresponding data of Eastern Logistics.
The interim financial information of the Group for the six months ended 30 June 2018 is not necessarily indicative of annual or future results of the Group. Investors should not place undue reliance on the unaudited consolidated interim financial information of the Group for the six months ended 30 June 2018.
4 China Eastern Airlines Corporation Limited 2018 Interim Report

Company Business Introduction
The scope of principal business of the Company includes: domestic and approved international and regional business for air transportation of passengers, cargo, mail, luggage and extended services; general aviation business; maintenance of aviation equipment and machinery; manufacture and maintenance of aviation equipment; agency business for domestic and overseas airlines and other business related to air transportation; insurance by-business agency services; e-commerce; in-flight supermarket; wholesale and retail of goods.
The Group adheres to its principle of deepening its comprehensive reforms, led by internationalization and the development of internet, centered on reformation development, brand construction and ability enhancement, striving to realize the development objective of “Establishing a World-Class and Happy CEA”, accelerated to change from a traditional air carrier to a modern aviation integrated services provider. The Group built up a streamlined while efficient modernized fleet, operating 654 passenger aircraft, including 12 business aircraft held under trust, with an average fleet age of 5.7 years. Based on Shanghai and Beijing core hub and Kunming and Xi’an hub, we expanded our flight network to 177 countries and 1,074 destinations with the help of the cooperation platform of SkyTeam Airline Alliance, thereby providing quality and convenient air transport and extended services to worldwide travelers and customers.
5

Company Profile
Company Information
Chinese name of the Company 中國東方航空股份有限公司
English name of the Company China Eastern Airlines Corporation Limited
Abbreviated English name of the Company CEA
Legal representative of the Company Liu Shaoyong
Basic Profile
Registered address of the Company 66 Airport Street, Pudong New District, Pudong International Airport,
Shanghai Postal code of the Company’s registered address 201202
Place of business of the Company 36 Hongxiang 3rd Road, Minhang District, Shanghai Postal code of the Company’s place of business 201100
The Company’s website www.ceair.com
Mobile application (APP) 東方航空
Mobile website m.ceair.com
Email address ir@ceair.com
Service hotline +86 95530
Sina Weibo http://weibo.com/ceair
Weixin public subscription ID 東方航空訂閱號
Weixin ID donghang_gw
Weixin QR code
Shares of the Company
A shares Place of listing: The Shanghai Stock Exchange Abbreviation: CEA Code: 600115 H shares Place of listing: The Hong Kong Stock Exchange Abbreviation: China East Air Code: 00670 ADR Place of listing: NYSE Abbreviation: China Eastern Code: CEA
Contact Person and Contact Method
Board Secretary, Company Secretary and Authorized Representative
Securities Affairs Representative
Contact person Wang Jian Yang Hui
Contact address 36 Hongxiang 3rd Road, Minhang District, Shanghai
36 Hongxiang 3rd Road, Minhang District, Shanghai
Telephone number 021-22330929 021-22330920
Fax number 021-62686116 021-62686116
Email address ir@ceair.com ir@ceair.com
6 China Eastern Airlines Corporation Limited 2018 Interim Report

Company Business Introduction
DIRECTORS
Liu Shaoyong (Chairman)
Ma Xulun (Vice Chairman, President)
Lin Wanli (Independent non-executive Director)
Li Ruoshan (Independent non-executive Director)
Ma Weihua (Independent non-executive Director)
Shao Ruiqing (Independent non-executive Director)
Cai Hongping (Independent nonexecutive Director) Yuan Jun (Employee Representative Director)
SUPERVISORS
Xi Sheng (Chairman of the Supervisory Committee) Gao Feng (Supervisor)
Li Jinde (Supervisor)
SENIOR MANAGEMENT
Li Yangmin (Vice President) Tang Bing (Vice President) Tian Liuwen (Vice President)
Wu Yongliang (Vice President, Chief Financial Officer)
Feng Liang (Vice President)
Feng Dehua (Vice President) Jiang Jiang (Vice President)
Guo Junxiu (Chief Legal Adviser)
Wang Jian (Board Secretary, Company Secretary)
COMPANY SECRETARY
Wang Jian
AUTHORIZED REPRESENTATIVE
Liu Shaoyong Wang Jian
LEGAL ADVISERS
Hong Kong: Baker & McKenzie USA: Baker & McKenzie
China: Beijing Commerce & Finance Law Office
PRINCIPAL BANKS
Industrial and Commercial Bank of China, Shanghai Branch China Construction Bank, Shanghai Branch
The Bank of China, Shanghai Branch Agricultural Bank of China, Shanghai Branch
SHARE REGISTRAR
Hong Kong Registrars Limited
Rooms 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong
The Bank of New York Mellon 240 Greenwich Street
New York, NY 10286 USA
China Securities Depository and Clearing Corporation Limited, Shanghai Branch
3/F, 166 East Lu Jiazui Road, Pudong New District, Shanghai
PRINCIPAL PLACE OF BUSINESS IN HONG KONG
Unit D,19/F, United Centre, 95 Queensway, Hong Kong
7

Interim Financial Information
Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the six months ended 30 June 2018
For the six months ended 30 June

8 China Eastern Airlines Corporation Limited 2018 Interim Report

Interim Financial Information Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the six months ended 30 June 2018
For the six months ended 30 June

9

Interim Financial Information
Interim Condensed Consolidated Statement of Financial Position
As at 30 June 2018

Interim Financial Information Interim Condensed Consolidated Statement of Financial Position
As at 30 June 2018

11

Interim Financial Information
Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2018

* These reserve accounts comprise the unaudited consolidated reserve of RMB43,423 million in the unaudited interim condensed consolidated statement of financial position.
12 China Eastern Airlines Corporation Limited 2018 Interim Report

Interim Financial Information
Interim Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2018
For the six months ended 30 June

13

Interim Financial Information
Interim Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2018
For the six months ended 30 June

14 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated
Financial Statements
For the six months ended 30 June 2018
1. Corporate and Group Information
China Eastern Airlines Corporation Limited (the “Company”), a joint stock company limited by shares, was established in the People’s Republic of China (the “PRC”) on 14 April 1995. The address of the Company’s registered office is 66 Airport Street, Pudong International Airport, Shanghai, the PRC. The Company and its subsidiaries (together, the “Group”) are principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery, tour operations and other extended transportation services.
In the opinion of the directors, the holding company and ultimate holding company of the Company is China Eastern Air Holding Company Limited (“CEA Holding”), a state-owned enterprise established in the PRC.
The A shares, H shares and American Depositary Shares are listed on the Shanghai Stock Exchange, The Stock Exchange of Hong Kong Limited and The New York Stock Exchange, respectively.
The unaudited interim condensed consolidated financial statements were approved for issue by the Company’s Board on 30 August 2018.
2. Basis of Preparation
The unaudited interim condensed consolidated financial statements, comprising interim condensed consolidated statement of financial position as at 30 June 2018, interim condensed consolidated statement of profit or loss and other comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for six months ended 30 June 2018 (collectively refer to as the “interim financial information”), have been prepared in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting”. The interim financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”).
As at 30 June 2018, the Group’s current liabilities exceeded its current assets by approximately RMB55.15 billion. In preparing the interim financial information, the Board conducts adequate and detailed review over the Group’s going concern ability based on the current financial situation.
The Board has taken actions to deal with the situation that current liabilities exceeded its current assets, and the Board is confident that the Group has obtained adequate credit facility from the banks to support the floating capital. As at 30 June 2018 the Group had total unutilised credit facilities of approximately RMB44.20 billion from banks.
Based on the bank facility obtained by the Group, the past record of the financing and the good working relationship with major banks and financial institutions, the Board considers that the Group will be able to obtain sufficient financing to enable it to operate, as well as to meet its liabilities as and when they become due, and the capital expenditure requirements for the upcoming twelve months. Accordingly, the Board believes that it is appropriate to prepare these financial statements on a going concern basis without including any adjustments that would be required should the Company and the Group fail to continue as a going concern. 15

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
3. New Standards, Interpretations and Amendments Adopted by the Group
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2017, except for the adoption of new standards and interpretations effective as of 1 January 2018. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
This note explains the impact of the adoption of IFRS 9 “Financial Instruments” (“IFRS 9”) and IFRS 15 “Revenue from Contracts with Customers” (“IFRS 15”) on the Group’s financial information and the new accounting policies that have been applied from 1 January 2018, where they are different to those applied in prior periods. Certain of the Group’s accounting policies have been changed to comply with the adoption of IFRS 9 and IFRS 15.
3.1 Impact on the financial information
As explained in note 3.2 and 3.3 below, IFRS 9 and IFRS 15 were generally adopted by the Group without restating comparative information. As a result of the changes in the entity’s accounting policies, certain reclassifications and adjustments are therefore not reflected in the restated statement of financial position as at 31 December 2017, but are recognised in the opening statement of financial position on 1 January 2018.
The following tables show the adjustments recognised for each individual line item. Line items that were not affected by the changes have not been included. The adjustments are explained in more detail by standard below.
Impact on the statement of financial position (increase/(decrease)) as at 1 January 2018:

16 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated Financial Statements For the six months ended 30 June 2018 3. New Standards, Interpretations and Amendments Adopted by the Group (continued) 3.2 Adoption of IFRS 9 Financial Instruments
IFRS 9 Financial Instruments — Impact of adoption IFRS 9, “Financial instruments”, addresses the classification, recognition and measurement of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. The adoption of IFRS 9 has resulted in changes in the Group’s accounting policies for classification, recognition and measurement of financial assets and financial liabilities and impairment of financial assets. Classification and measurement On 1 January 2018 (the date of initial application of IFRS 9), the Group’s management has assessed which business models apply to the financial assets held by the Group and has classified its financial instruments into the appropriate IFRS 9 measurement categories including those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss) and those to be measured at amortised cost. Reclassification from available-for-sale investments to equity instruments at fair value through other comprehensive income (“FVOCI”) The Group invested in a number of equity investments at a total cost of RMB107 million and those investments was classified as available-for-sale stated at cost under previous standard IAS 39. With the adoption of IFRS 9, those investments does not meet the IFRS 9 criteria for classification at amortised cost, because their cash flows do not represent solely payments of principal and interest. Therefore, those equity investments are classified as financial asset measured at fair value and the group elected to present any changes in the fair value in other comprehensive income (“FVOCI”), because those investments are held as long-term strategic investments that are not expected to be sold in the short to medium term.
As a result of the adoption of IFRS 9, the above available-for-sale investments has been fair valued as at 1 January 2018 by the management. The difference between the fair value and the carrying amount of those investments as at 1 January 2018 is approximately RMB895 million, and therefore relevant adjustment was recorded to opening equity. Reclassification from available-for-sale investments to equity instrument at fair value through profit or loss (“FVPL”) The Group holds certain listed stock shares and this investment was classified as available-for-sale stated at fair value under previous standard IAS 39. With the adoption of IFRS 9, the management reevaluate the intention of possession of this investment, as the management intends to sell this investment in the short to medium term. Therefore, the Group elected to classify this investment as financial asset measured at fair value and present any changes in the fair value in profit or loss (“FVPL”). 17

Notes to the Interim Condensed Consolidated Financial Statements For the six months ended 30 June 2018
3. New Standards, Interpretations and Amendments Adopted by the Group (continued) 3.2 Adoption of IFRS 9 Financial Instruments (continued) IFRS 9 Financial Instruments — Impact of adoption (continued)
Reclassification from available-for-sale investments to equity instrument at fair value through profit or loss (“FVPL”) (continued)
Summary of effects resulting from adoption of IFRS 9 is as follows:
IAS 39 IFRS 9 Measurement category Carrying amount RMB million Measurement category Carrying amount RMB million
Financial assets Equity investments at fair value through other comprehensive income
Available-for-sale investments stated at cost 107 FVOCI 1,002 Equity investments at fair value through other comprehensive income
Available-for-sale investments stated at fair value 570 FVOC I570
Equity investment at fair value through profit or loss
Available-for-sale investments stated at fair value 123 FVPL 123
Impairment of financial assets The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39. The Group has one type of financial assets measured at amortised cost that are subject to IFRS 9’s new expected credit loss model:
Trade and other receivable
The Group was required to revise its impairment methodology under IFRS 9 for trade and other receivable. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and other receivables. The Group established expected credit losses model based on historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The adoption of the ECL requirements of IFRS 9 resulted in increases in impairment allowances of the Group’s trade and other receivables. The increase in allowance resulted in adjustment to opening equity amounting to RMB31 million. 18 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
3. New Standards, Interpretations and Amendments Adopted by the Group (continued)
3.3 Adoption of IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers — Impact of adoption
IFRS 15, “Revenue from contracts with customers” (“IFRS 15”) deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces IAS 18 “Revenue” and IAS 11 “Construction contracts” and related interpretations.
(a) Frequent flyer programs
Prior to the adoption of IFRS 15, the Group used residual method to allocate a portion of ticket sales to the mileage points issued in connection with the flights, which were valued based on the estimated redemption value. Revenue is recognised when the miles have been redeemed and used or for miles that expire unused at the expiration date. IFRS 15 requires the Group to apply relative stand-alone selling price approach to allocate a portion of sales to the mileage points issued and recognises in contract liabilities and frequent flyer program liabilities. The application of a relative selling price approach lowers the contract liabilities and frequent flyer program liabilities.
(b) Change fees
The Group charges customers to make changes to air tickets. The process of changing the customer’s itinerary generally will be regarded as a contract modification under IFRS 15 instead of considered as no additional goods or services transferred to the customer prior to the adoption of IFRS 15 and recognised in other revenue at the time of the ticket is changed. Under IFRS 15, change fees is recognised in passenger revenue when transportation is provided.
(c) Passenger ticket breakage
Passenger ticket breakage is defined as the tickets for which the passenger will not use and will expire unused. Prior to the adoption of IFRS 15, the Group recognised revenue from the ticket breakage upon expiration of the ticket. Under IFRS 15, the Group recognises the estimated breakage in proportion to revenue recognised for tickets acquired during the same period using a portfolio based approach.
4. Financial Assets and Financial Liabilities
(a) Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and fuel price risk), credit risk, and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to manage risk exposures whenever management considers necessary.
The interim financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2017.
There have been no changes in the risk management department since the 2017 year end or in any risk management policies.
19

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
4. Financial Assets and Financial Liabilities (continued)
(a) Financial risk factors (continued)
Liquidity risk
The Group’s primary cash requirements are for day-to-day operations, additions of and upgrades to aircraft, engines and flight equipment and repayments of related borrowings. The Group finances its working capital requirements through a combination of funds generated from operations and borrowings including bank loans, debentures and bonds (both short- term and long-term). The Group generally finances the acquisition of aircraft through long-term finance leases or bank loans.
The table below analyses the Group’s financial liabilities that will be settled into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

20 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
4. Financial Assets and Financial Liabilities (continued)
(b) Fair value estimation of financial assets and liabilities
Financial instruments not measured at fair value
The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, were as follows:

Management has assessed that the fair values of cash and cash equivalents, restricted bank deposits and short-term bank deposits, trade and notes receivables, trade and bills payables, financial assets included in prepayments and other receivables, financial liabilities included in other payables and accruals, short-term bank borrowings and short-term guaranteed bonds approximate to their carrying amounts largely due to the short term maturities of these instruments.
The fair values of the deposits relating to aircraft held under operating leases included in other non-current assets, long- term borrowings and obligations under finance leases have been measured using significant observable inputs and calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities.
Financial instruments measured at fair value
The Group enters into derivative financial instruments, including Foreign exchange forward contracts and interest rate swaps with various counterparties, principally financial institutions with high credit ratings.
Derivative financial instruments are measured using valuation techniques similar to forward pricing and swap models, using present value calculations. The models incorporate various market observable inputs including the foreign exchange spot and forward rates and interest rate curves. As at 30 June 2018, the marked to market value of the derivative asset position is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationship and other financial instruments recognised at fair value.
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Notes to the Interim Condensed Consolidated Financial Statements For the six months ended 30 June 2018 4. Financial Assets and Financial liabilities (continued) (b) Fair value estimation of financial assets and liabilities (continued) Fair value hierarchy The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments: Assets and liabilities measured at fair value:

22 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
4. Financial Assets and Financial Liabilities (continued)
(b) Fair value estimation of financial assets and liabilities (continued)
Fair value hierarchy (continued)
Assets and liabilities measured at fair value: (continued)
As at 31 December 2017 Fair value measurement using Significant

Total — 325 325
Available-for-sale investments and partial equity instruments are listed A share and H share stock investments, of which the fair value was measured based on quoted market prices at the reporting dates. The rest of the equity instruments are non- listed shares, mainly of which the fair value was measured using market approach at the reporting dates.
The fair values of derivative financial instruments are determined by using valuation techniques. These valuation techniques use applicable models and maximise the use of observable market data where it is available and also use quoted market prices or dealer quotes for reference.
23

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
4. Financial Assets and Financial Liabilities (continued)
(b) Fair value estimation of financial assets and liabilities (continued)
Fair value hierarchy (continued)
Assets and liabilities for which fair values are disclosed:

As at 31 December 2017 Fair value measurement using Significant

24 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated Financial Statements For the six months ended 30 June 2018 5. Revenue
The Group is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery, tour operations and other extended transportation services.

25

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
5. Revenue (continued)
For the six months ended 30 June 2017
RMB million (Unaudited)
Traffic revenues
— Passenger 43,106
— Cargo and mail 1,777
Tour operations income 1,070
Ground service income 701
Cargo handling and processing income 69
Commission income 56
Others 1,644
48,423
6. Other operating income and gains
For the six months ended 30 June

Note:
(a) Subsidy income mainly represents (i) subsidies granted by various local governments based on certain amounts of tax paid; (ii) subsidies granted by various local governments and other parties to encourage the Group to operate certain routes to cities where these governments are located.
There are no unfulfilled conditions and other contingencies related to subsidies that were recognised for the six months ended 30 June 2018 and 2017.
26 China Eastern Airlines Corporation Limited 2018 Interim Report

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
7. Segment Information
(a) CODM, office of the General Manager, reviews the Group’s internal reporting in order to assess performance and allocate resources.
The Group has one reportable operating segment, reported as “airline transportation operations”, which comprises the provision of passenger, cargo, mail delivery, ground service and cargo handling services.
Other services including primarily tour operations, air catering and other miscellaneous services are not included within the airline transportation operations segment, as their internal reports are separately provided to the CODM. The results of these operations are included in the “other segments” column.
Inter-segment transactions are entered into under normal commercial terms and conditions that would be available to unrelated third parties.
In accordance with IFRS 8, segment disclosure has been presented in a manner that is consistent with the information used by the Group’s CODM. The Group’s CODM monitors the results, assets and liabilities attributable to each reportable segment based on financial results prepared under the PRC Accounting Standards for Business Enterprises (the “PRC Accounting Standards”), which differ from IFRS in certain aspects. The amount of each material reconciling items from the Group’s reportable segment revenues and profit before income tax, arising from different accounting policies are set out in Note 7(c) below.
The segment results for the six months ended 30 June 2018 were as follows:

27

Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2018
7. Segment Information (continued)
(a) CODM, office of the General Manager, reviews the Group’s internal reporting in order to assess performance and allocate resources. (continued)
The segment results for the six months ended 30 June 2017 were as follows:
Airline transportation operations RMB million (Unaudited)
Other segments RMB million (Unaudited) Eliminations RMB million (Unaudited) Unallocated* RMB million (Unaudited) Total RMB million (Unaudited)
Reportable segment revenue from

The segment assets and liabilities as at 30 June 2018 and 31 December 2017 were as follows: