Qantas Airways Limited

1H14 Results
27 February 2014

Overview

Immediatepriorities,longtermcompetitiveness
1H14earningsdeteriorationinverydifficultoperatingenvironment Currentchallenges: Capacitygrowthaheadofdemandpressuringyields Distortedaviationmarketplace Uncompetitivecostbaseandworkpractices HighAUDfuelcosts,mixedeconomicconditions Immediatepriorities: Earningsrecoverythroughacceleratedbusinesstransformation Rightsizingfleetandnetwork Capitalexpenditure(capex)alignedwithfinancialperformance

STRENGTHENINGOURCOREBUSINESSFORLONGTERMCOMPETITIVENESS
2

1H14FinancialResults
1H14UnderlyingPBT1 lossof$252minlinewithguidance;StatutoryLossAfterTax$235m Revenuedeclinefromyieldandloadpressure,recordfuelcost Strongliquidityposition$3b2 Capex weightedto1H14 $0.9b,(2H14:$0.3b) Nointerimdividenddeclared
KEYGROUPFINANCIALMETRICS Revenue($M) YieldexcludingFX(c/RPK) ComparableUnitCost4 (c/ASK) Netfreecashflow5 ($M) 1H14 7,903 10.10 5.04 (358) 1H13 8,242 10.43 5.13 205 VLY3 4% 3% 2% >(100)%

1. Underlying Profit Before Tax (PBT) is a nonstatutory measure and is the primary reporting measure used by the Qantas Groups chief operating decisionmaking bodies, being the Chief Executive Officer, Group Management Committee and the Board of Directors, for the purpose of assessing the performance of the Group. All line items in the 1H14 Results Presentation are reported on an Underlying basis . Refer to Supplementary Slide 4 for a reconciliation of Underlying to Statutory PBT. 2. Includes cash and cash equivalents and $630m undrawn revolver facility at 31 December 2013. 3. Variance to last year. Favourable variances are reported in green. 4. Comparable Unit Cost is calculated as Underlying PBT less passenger revenue and fuel per ASK adjusted for the impact of the Boeing settlement (1H13), B767 phased fleet retirement, share of the Groups associate losses, change in FX rates and movements in average sector length. Refer to Supplementary Slide 9 for further detail. 5. Net free cash flow is operating cash flows less investing cash flows. Free cash flow is a measure of the amount of operating cash flows that are available (i.e. after investing activities) to fund reductions in net debt or payments to shareholders.

1H14FinancialResults

UNDERLYINGLOSSBEFORETAX($M)

(125) 220 (187)

1H13 Underlying PBT

Boeing settlement in1H13

(112)
Yield Load

(252) (90)
Fuelprice andFX

(10)

190

(138)
1H14 Underlying PBT

Associate Costbase losses improvement1

CPI2

1. Cost base improvement includes Qantas Transformation benefits (excluding passenger revenue initiatives) as well as other cost and efficiency improvements in Jetstar Group, Loyalty, Qantas Freight and Corporate. 2. Company estimate. Includes wage inflation.

UnderlyingIncomeStatementSummary
$M Netpassengerrevenue2 Netfreightrevenue Otherrevenue2 Revenue Operatingexpenses(excludingfuel) Fuel Depreciationandamortisation Noncancellableaircraftoperating leaserentals UnderlyingEBIT Underlyingnetfinancecosts UnderlyingPBT1 1H141 6,786 500 617 7,903 4,797 2,255 746 261 (156) (96) (252) 1H131,3 7,042 475 725 8,242 4,770 2,181 719 265 307 (87) 220 VLY% (4) Sustainedaggressivecompetitoractivityimpactingyieldandload 5 ConsolidationofAustralianairExpress4;reducedinternationalcapacity (15) 1H13Boeingsettlement$125m (4) (1) QantasTransformationinitiatives;0.7%capacitygrowth
increaseinaverageAUDfuelpricebeforehedging;offsetby3%fuel (3) 9% efficiency5 improvements

(4) Netincreaseof7ownedaircraft 2 Netreductionof2aircraftleases >(100) (10) Increaseinnetdebt >(100)

1. All line items presented on an Underlying basis. Refer to Supplementary Slide 4 for a reconciliation of Underlying PBT to Statutory PBT. 2. Net passenger revenue has been adjusted in 1H14 to include revenue from charter operations previously reported in Other revenue. 1H13 Net passenger revenue and Other revenue have been restated accordingly. These items remain excluded from the calculation of yield. 3. 1H13 has been restated for the impact of the mandatory application of the revised Accounting Standard AASB 119: Employee Benefits . 4. Following acquisition in November 2012. 5. Fuel efficiency measured as litres per Available Seat Kilometre (ASK).

OtherItemsNotIncludedinUnderlyingPBT1

$M
Statutory(loss)/profitbeforeincometaxexpense AASB139marktomarketmovementsrelatingto otherreportingperiods Redundancies,restructuringandothertransformation costs Netimpairmentofproperty,plantandequipment Netprofitondisposalofinvestmentinjointly controlledentity B7878introductioncosts Other TotalItemsnotincludedinUnderlyingPBT UnderlyingPBT

1H14
(305) (54) 59 23 9 16 53 (252)

1H13
148 (34) 68 62 (30) 6 72 220
OngoingQantasTransformationinitiativesincludingconsolidationof AvalonHeavyMaintenanceandclosureofAdelaideCateringfacility B763retirement

1. Items which are identified by Management and reported to the Qantas Groups chief operating decisionmaking bodies as not representing the underlying performance of the business are not included in Underlying PBT. The determination of these items is made after consideration of their nature and materiality and is applied consistently from period to period. Items not included in Underlying PBT primarily result from revenues and expenses relating to business activities in other reporting periods, major transformational/restructuring initiatives, transactions involving investments and impairments of assets outside the ordinary course of business.

CashFlowandDebtPosition

SUMMARISEDCASHFLOW $M Cashgeneratedfromoperations Otheroperatingcashflows1 Investingcashflows Freecashflow(NetOperating&Investing) Financingcashflows Netchangeincashheld EffectsofFXoncash Cashatendofperiod 1H14 692 (111) (939) (358) (82) (440) 6 2,395 1H13 788 (8) (575) 205 (547) (342) 2 3,058 VLY%
Boeingsettlementpartiallyoffsetby1H14improvementin (12) 1H13 forwardbookingsdrivenbystrategicpartnershipsincludingEmirates redundancycostsoffsetbyStarTrackExpressdividendsaspart >(100) 1H13 ofsaletransaction weightedto1H14vs2H14;1H13includesproceedsfromsale (63) Capex ofStarTrackExpress

>(100)
SaleandleasebackofB787sandB738s;1H13repaymentof 85 borrowings

(29) >100 (22) Maintainingstrongliquidityposition

DEBTPOSITIONANDGEARING 1H14 Netonbalancesheetdebt2 ($M) Gearingratio3 3,829 49:51 2H134 3,226 46:54 VLY% (19) (3)pts

1. Includes total of cash payments to employees for redundancies, interest received, interest paid, dividends received from investments in entitles accounted for using the equity method, and income taxes 7 paid. 2. Net on balance sheet debt includes interestbearing liabilities and the fair value of hedges related to debt less cash, cash equivalents and aircraft security deposits. 3. Gearing ratio is net debt including operating lease liability to net debt including operating lease liability and equity (excluding hedge reserve). The gearing ratio is used by Management to represent the Qantas Groups debt obligation including obligations under operating leases. 4. 2H13 restated for the impact of the mandatory application of the revised accounting standard AASB119: Employee Benefits. 7

CapitalManagementandTreasury
Strongliquidity$3b1 Cash$2.4b $630mundrawndebtfacilities NomajorunsecuredmaturityuntilApril2015 ~30%oftotalpassengerfleetdebtfree 31newunencumberedaircraftsinceFY10 7 unencumberedaircraftadded1H14 20midlifeaircraftbecomedebtfreeinFY14 Youngaveragefleetage7.6years2 Majorityofhedgingeffectiveatcurrentrates3
2H14EXPOSURE3 Fuelcosts Operatingforeignexchange %HEDGED 98 88

UNSECUREDDEBTMATURITYPROFILE$M
1000 800 600 400 200 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 SyndicatedLoanFacilityDrawn Bonds

FLEETAGE2(YRS)
10.0 9.5 9.0 8.5 8.0 7.5 7.0 FY08 FY09 FY10 FY11 FY12 FY13 1H14 8

1.Includescashandcashequivalentsand$630mundrawnrevolverfacilityat31December2013. 2.AveragefleetageoftheGroupsscheduledpassengerfleetbasedonmanufacturingdate.3.Asat 25February2014

1H14 Segment Results

QantasDomestic
1H14 Revenue UnderlyingEBIT ASKs Seatfactor $M $M M % 3,086 57 19,227 74.9 1H13 3,220 218 19,187 76.9 VLY% (4) (74) 0.2 (2.0)pts

UnderlyingEBIT$57m 1H14demandbelowmarketcapacitygrowth Resourcessectorsoftening(QLDandWA) Corporateaccountpricingpressure UnfavourablefuelpriceandFX$40m ComparableUnitCostimprovement1%1 Maintained>80%ofcorporateaccountsbyrevenue Fleetrenewalimprovingeconomics

B734fleetexitcompletedFebruary2014,9xB763retiredinlast2years Recordcustomeradvocacylevels Superiorontimeperformance(OTP)2 5th yearrunning,includingunprecedented

12outof12monthsin2013
1. Comparable Unit Cost is calculated as Underlying EBIT less passenger revenue and fuel per ASK adjusted for Boeing settlement (1H13), B767 phased fleet retirement, change in FX rates and movements in average sector length. 2. Source: Monthly BITRE data January 2009 December 2013.

10

QantasInternational
UnderlyingEBITlossof$262m Competitorcapacitygrowthof9%1 Europe,SouthEastAsiayieldsmostpressured UnfavourablefuelpriceandFX$47m StrongComparableUnitCostimprovement4%2 ReducedB747heavymaintenancecosts ~5%increaseinfleetutilisation Improvedeconomicsfromreconfigurations Customeradvocacycontinuesatrecordlevels3 Enhancedcodesharenetwork,seamlesscustomerproposition
Revenue UnderlyingEBIT ASKs Seatfactor $M $M M % 1H14 2,621 (262) 29,863 80.8 1H13 2,818 (91) 29,625 82.7 VLY% (7) >(100) 0.8 (1.9)pts

throughEmiratesalliancedrivingpositivesentiment

1. Source: BITRE (July 2013November 2013). 2. Comparable Unit Cost is calculated as Underlying EBIT less passenger revenue and fuel per ASK adjusted for the impact of the Boeing settlement (1H13), change in FX rates and movements in average sector length. 3. Since recording commenced in February 2003.

11

JetstarGroup
UnderlyingEBITlossof$16m DomesticAustraliaprofitable Associatelosses$29mduringstartupphase
Revenue UnderlyingEBIT ASKs $M $M M % 1H14 1,671 (16) 22,754 78.5 1H13 1,757 128 22,562 79.0 VLY% (5) >(100) 0.9 (0.5)pts

Competitiveenvironmentimpactingyields,

inparticularSouthEastAsia
UnfavourablefuelpriceandFX$31m

Seatfactor

LowCostCarrier(LCC)businessfundamentalsremainstrong 2%ControllableUnitCost1 improvement 1%ancillaryrevenueperpassenger2 improvement IntroductionofB787intolonghaulbusinesstoimproveunitcost,customerbenefits Recordcustomeradvocacylevels StrongandgrowingbrandpresenceacrossAsiaPacific

1. Controllable Unit Cost is calculated as total underlying expenses excluding fuel, carbon tax, Jetstar Asia and share of associate losses, adjusted for change in FX rates and movements in average sector length per ASK. 2. Ancillary revenue per passenger is calculated in local currency and excludes management and branding fee revenue, adjusted for change in customer mix.

12

QantasLoyalty
RecordUnderlyingEBIT1 $146m,up7% Up10%excludingnewbusinessstartupcosts2 Billings3 up9%,doubledigitcreditcardpointsales 8 newQFFpartnersdrivingmorewaystoearn Sustainedrecordcustomeradvocacylevels 9.8m4 membersandgrowing; FY14target10m 3millionawardsredeemed,up11% Growth initiatives exceedingexpectations QantasCash over200,000activations4 AQUIRE ~25,000SMEspreregistered;morethan10
UnderlyingEBIT Billings Deferred Revenue Growth5 Members $M $M $M M 1H14 146 662 59 9.7 1H13 137 607 45 9.0 VLY% 7 9 31 8

keypartnersincorecategories;31Marchlaunchdate

1.RecordUnderlyingEBITresultcomparedtopriorperiodsnormalisedforchangesinaccountingestimatesofthefairvalueofpointsandbreakageexpectationseffective1January2009. 2.QantasCashandAQUIREstartupcosts.3.Billingsrepresentpointsalestopartners.4.AsatFebruary2014.5.Deferredrevenuegrowthfrom1July2013and1July2012respectively.

13

QantasFreight
UnderlyingEBIT$11m SaleofStarTrackExpressandacquisitionof
Revenue UnderlyingEBIT Capacity (InternationalAFTKs) Load(International) $M $M B %

1H14 568 11 1.8 53.9

1H13 531 22 2.0

VLY% 7 (50) (8.2)

AustraliaairExpressduring1H131
Challengingairfreightmarkets Internationalcapacityreductions AustraliaairExpress1 integrationcompleted Fullrunratebenefitsfrom2H14 Exitof1B747freighterin2H14 Focusoncostreductionandservice

55.9 (2.0)pts

improvementthroughtechnology

1.Saleof50%stakeinStarTrackExpresstoAustraliaPostandacquisitionof100%ofAustraliaairExpresscompleted13November2012.

14

Group Strategy Update

15

GroupStrategyUpdate
1. Marketconditions 2. TrackrecordofdeliveringTransformation 3. Immediatepriorities AcceleratingQantasTransformation Rightsizingfleetandnetwork Deliveringforcustomers Ourpeople Realigningcapex withfinancialperformance 4. Structuralreviewupdate 5. Longtermcompetitiveness
16

1.MarketConditions International
CompetitorcapacitygrowthintoAustralia

Competitorcapacitygrowthconstrainingyields
FY14INTERNATIONALCAPACITYGROWTH2
Singapore/ Malaysia +24% UK/Europe& MiddleEast +8%

runningatdoubleglobalaverage:
46%increasesinceFY09,vsglobal
China+4%

growthof21%from200920131
Liberalaviationpolicy,attractiveAUD Growthledbystateownedairlines FY14marketcapacityforecasttogrow9% Shiftingglobalaviationlandscape,new

USA3 +2%

TotalMarket +9%
Tasman+4% Tasman +4%

alliances

battleamonghubcarriers

1.BITREandIATACarrierTrackerdataforindustryASKgrowth.2.GrowthpercentagesbasedonseatnumbersvsFY13.AlldatasourcedfromBITREexceptFY14Q2Q4whichisbasedonFY13seats adjustedfordaysinFY14Q2Q4andcarriermarketannouncementsasatthe31December2013.3.DoesnotincludeHawaii.

17

1.MarketConditions Domestic

Capacityoversupplyexacerbatingweakunderlyingdemand
CompetitorgrowthhasoutpacedQantas
DOMESTICCAPACITYGROWTHBYCARRIER
106.50% QantasGroup 3 VAHGroup 2 Tiger 2 6.5% 0.5% FY12 FY13
Incl Tiger

GroupsincebeginningofFY12
4.5bASKsaddedbyVirginAustralia

Group1,2 vs4.3bASKsbyQantasGroup3
Demandimpactedbyresourcessector

9.6% 3.0% 4.9% 6.3%

softening,cautiousbusinessenvironment, lowconsumerconfidence
Growthaheadofmarketdemandhas
56.8%

YTD Nov13

compressedyieldsacrossallsegments

ASKsaddedsince 1July 2011 B

QF Group3 VAH Group2 (incl
Tigerfrom1H14)

%
change

4.3 4.5 FY13 63.7%

8 18 YTD Nov13 63.4%

QantasGroup CapacityShare3

FY12 65.2%

Domesticprofitpoolreducedfrom >$700minFY12to<$100min1H144

Qantashasdefendedcompetitivepositionwithout growingatsamepaceascompetition
18

1.VirginAustraliaHoldings(VAH) consolidatedairlinesincludingVirginAustralia,VirginAustraliaRegionalAirlinesandTigerAir Australia.2.Source:CompanyOperatingStatistics.3.Source:BITRE 4.BasedonEBIT.Competitordatafor1H14basedonmarketguidance.

1.MarketConditions Domestic
QANTAS
ShareRegister

Unevenplayingfielddistortingmarketplace
VIRGIN

Virgin Group Other Institutions &Other

Institutions Stateowned ForeignAirlines

StateownedForeignAirlines Govt Ownership ownership inVAH3 Etihad 100% 19.9% SIA2 56% 19.8% AirNZ2 51% 24.5%

Cashinjections: Nov12 $105mshare placementtoSIA Nov13 $350mequity raisingunderwrittenbyairline shareholders

Ownership Restrictions
Singleforeignshareholder Totalforeignownership Totalforeignairlineownership Max25%1 Max49%1 Max35%1 Nocap AirNZapprovedfor26% holding4 Nocapondomesticbusiness ~75%foreignowned Nocap 64%ownedby3stateownedforeignairlines
19

1.AspertheQantasSaleAct1992. 2.SingaporeAirlines,AirNewZealand3.EtihadandSingaporeAirlinesholdafurther1.34%economicinteresteach,heldviaanequityswap,subjectto ForeignInvestmentReviewBoardapproval.4.ApprovalfromForeignInvestmentReviewBoard.

1.MarketConditions Conclusions
Competitiveintensityincoremarketstopersistinshortterm Revenuewillremainunderpressure AUDfueltoremainhigh Distortedaviationmarketplace

Inresponsetounprecedentedchallenges,wemuststrengthenourcorebusinessand driveearningsrecoverythroughacceleratedbusinessandcostbasetransformation.

20

2.TrackRecordofDeliveringTransformation

SinceFY09,Qantashasfacedincreasinglychallengingenvironment:
Groupyieldsdown11%1 (~$1.2bimpactonrevenue) AdverseimpactoffuelpriceandFXof>$500m(FY13vsFY09) Domesticcarbontaxunrecovered($106minFY13)

FromFY09FY13,pressuresweremitigatedbytransformationinitiatives:
ComparableUnitCost2 reducedby19%,(21%reduction1H09to1H14) Significantinroadsintolegacycostbaseandworkplacepractices Includingmajorinitiatives:
ACTION Heavy maintenance Commercial Network Consolidated3basesto1 Alliances,codeshare Cost ofsale Exitunderperforming routes Utilisationandscheduling TIMEFRAME FY10toFY13 FY10toFY13 FY10 toFY13 TOTALBENEFIT $110m $280m $250m

1. Adjusted for movements in average sector length. 2. Comparable Unit Cost is adjusted to aid comparability between reporting periods. Comparable Unit Cost is calculated as net expenditure (Underlying PBT less passenger revenue and fuel) per ASK adjusted for the items listed in the table on slide 22.

21

2.TrackRecordofDeliveringTransformation

Significantinroadsintolegacycostbaseandworkplacepractices

19%UNITCOSTREDUCTIONFY09TOFY13, 21%UNITCOSTREDUCTION1H09TO1H14
UnitCost NetExpenditure(excludingfuel) ASKs(B) UnderlyingUnitCost(c/ASK) 1H14B767phasedfleetretirement 1H14 Associatelosses 1H14ImpactofCarbonTax CumulativeFX SectorLength ComparableUnitCost1 (c/ASK) 5.90 1H09 3,767 64 5.90 1H14 3,754 72 5.23 (0.03) (0.04) (0.08) 0.09 (0.50) 4.67

IMPROVEDFTE2 EFFICIENCY
FTEs QantasBrands Jetstar QantasGroup ASKs(B) Passengers(M) FY08 29,736 2,735 34,295 127 39 FY13 %change (8) 27,384 90 5,201 33,265 140 48 (3) 10 23

GroupFTE/Passengerdown22%

21%reduction

2008

2013

1. Comparable Unit Cost is adjusted to aid comparability between reporting periods. Comparable Unit Cost is calculated as net expenditure (Underlying PBT less passenger revenue and fuel) per ASK adjusted for the items listed in the table above. 2. Full Time Equivalent employee

22

3.ImmediatePriorities

Ourguidingstrategicprinciplesareconsistent
Safetyisalwaysourfirstpriority Thefirstchoiceforcustomersineverymarketweserve Maintainingdualbrandstrengthindomesticmarket ReshapingQantasInternationaltoremaincompetitive MaintainingtheJetstaropportunityinAsia BroadeningQantasLoyaltyforstrong,diversifiedearnings Drivingefficiencyandproductivity

23

3.ImmediatePriorities

Butwehavetochangeandaccelerateimplementation

STRENGTHENINGOURCOREBUSINESS Acceleratingcostreduction Deferringgrowth

Rightsizingfleetandnetwork

Aligningcapex tofinancialperformance

Workingexistingassetsharder

Acceleratingsimplification

EARNINGSRECOVERYTHROUGHBUSINESSTRANSFORMATION

24

3.AcceleratingQantasTransformation

Extensiverestructuringincompressedtimeframe
TARGET:$2BCOSTSAVINGSBYFY17
Supplier $150m Technology $200m Rightsizing (FleetandNetwork) $600m Consolidation $450m

Rightsizing
Fleetandnetworkchanges

Productivity
Improvingefficiencyandutilisation

Consolidation
Rationalisationofactivities

Technology
Enhancingefficiencywithtechnology
Productivity $600m

Supplier
Improvedtermswithsuppliers

25

3.AcceleratingQantasTransformation

Extensiverestructuringincompressedtimeframe
~250INITIATIVESACROSSQANTASGROUPTOREMOVE$2BCOSTSBYFY17
MajorInitiatives Outcome
Benefit($m) Definition

Rightsizing
600 Fleet,utilisationand networkchanges

Productivity
600 Improving efficienciesand utilisation

Consolidation
450 Rationalisationof activitiestocease costs

Technology
200 Enhancingefficiency withtechnology 1. B787rollout 2. Freight:Supply chain/terminal improvement program 3. Application rationalisation 4. NextGencheckin

Supplier
150 Improved termswith suppliers 1. Renegotiate commercial contractsacross business 2. Vendor management 3. ITsupportand infrastructure

Topinitiatives 1. Domesticfleet utilisation 2. International network optimisationand fleetutilisation

3. Acceleratedfleet retirement(non 3. SYD2 andnational reconfiguredB747, airportstaffing improvements B767)

1. Aligninglabourand 1. Headofficeand management equipment restructure requirementsto demand(including 2. Heavy LMO1 changes) Maintenance: closureofAvalon 2. Fuel burnreduction programs 3. SupplyChain: transformation& procurement benefits 4. Catering:ADL3 closure

1.LineMaintenanceOperations.2.Sydney3.Adelaide

26

3.AcceleratingQantasTransformation
Stepchangeinlabourproductivity
LABOURCOSTGROSSREDUCTIONS($M)
$500600m reduction

FTEstoreduceby5,000byFY17
4,000headcountreductionbyFY15

30%reductioninmanagementand nonoperationalroles(~1500FTEs) Rightsizing,Productivity,Consolidation andTechnologytoreducelabouracross business TotalFY14andFY15redundancycosts ~$500m

FY14F FY17F

Wageinflationmitigation wagefreeze untilcompanymakesFYunderlyingprofit:

Ongoingforexecutives ImmediateforopenEBAs ProposedforotherEBAcoveredstaff

27

3.RightsizingFleetandNetwork

Increasedomesticnarrowbodyutilisationthroughreducedturnaroundtimes,schedule

Working existingassets harder

redesign,fleetsimplification QantasDomestictofocuswidebody aircraft onEastWest,peakTriangle1 servicesonly A330sfreeduptoenterQantasInternationalasreplacementaircraft IncreaseA380utilisationthroughretimesandnaturalgroundtimemaintenance MELLHR2 serviceretimedtoincreaseutilisation,improverevenue

Rightaircraft,rightroute SYD,BNESIN3 toA330(fromB747),1QFY15 EvaluatingoptionsfordeploymentofA380to befreedupfromutilisationincrease Exitunderperformingroutes Qantas International:PERSIN4,1QFY15 Accelerateretirementofoldestaircraft B767fleet,nonreconfiguredB747s Leveragingflexibilitytomanagefleetrequirements Suspendinggrowth at JetstarAsia(Singapore),beddingdownotherAsiaventures A380:Deferredremaining 8aircraftwithongoingreviewofdeliverydatestomeet

Rightsizing fleetand network

Deferring growth

potentialfuturerequirements
B7878:Deferredfinal3of14aircraftonfirmorder A320:Restructureoforderbook
28

1.SydneyMelbourneBrisbane2.MelbourneLondon 3.Sydney,BrisbaneSingapore. 4.PerthSingapore.

3.RightsizingFleetandNetwork
FY131 11FleetTypes
A380 B747 (reconfig) B747 (nonreconfig) A333 B747 (reconfig) A332 A333 B767 B737400 B737800 A332

Acceleratedfleetsimplificationtounderpinunitcostimprovements

Deferorsellover50aircraft
FY162 7FleetTypes
A380

Maintainyoungaveragefleet ageof8yearsinFY16 B747:6nonreconfigured aircraftretiredby2HFY16 B767:all15retiredby3QFY15 B734:allretiredbyFebruary 2014

QANTAS

B737800

A330 B787 B787 A320 A320

1.Asat30June2013.2.Byendoffinancialyear20152016

JETSTAR
29

3.DeliveringforCustomers

Thefirstchoiceforourcustomersineverymarketweserve
Investmentincustomersessentialtomaintaincompetitiveadvantages
A330reconfigurationforbestinclassdomesticandinternationalproduct ContinuedrolloutofB787;improvedonboardexperience NewloungesinLAX,HKG,BNE1 toaddtosuccessofnewSIN2 lounge QantasLoyaltycustomerinnovation;QantasCash,AQUIRE,expandingpartners Technologytoimprovecustomerexperience,increaseefficiency Ongoingstaffservicetrainingtomaintainrecordcustomeradvocacylevels

1.LosAngeles,HongKong,Brisbane.2.Singapore

30

3.OurPeople
OurpeoplearewellawareofchallengesfacingQantas
Over21,000signaturesforFairgoforQantaspetition

Ourpeoplecontinuetodoagreatjobforourcustomers
Intensivecustomertrainingcontinues Recordcustomeradvocacyresults1

Scopeofchangerequiredwillbedifficult,andwewillcontinuetoworkcloselywith ourpeople
Stronginternalcommunications,regularupdates

1. Customer advocacy measured by Net Promoter Score (NPS). NPS 2013/2014 YTD average at record levels.

31

3.FundingQantasTransformation
TransformationtoFY17tobefundedthrough:
Reprioritisationofcapital FuturefreecashflowasbenefitsfromTransformationrealised;rapidpaybackfrom

immediateinitiatives
Assetsales

TargetingpositivefreecashflowfromFY151 Capex alignedwithfinancialperformance

Flexibilitymaintainedforfurtherreductions

1. Assumes no material adverse change in operating environment.

32

3.RealigningCapex withFinancialPerformance
Removing$1bover2years,maintainingflexibility
NETCAPEX1 &LEASEINVESTMENT2 ($B)

Deferreddeliveryoffinal8A380sonorder withongoingreviewofdeliverydatesto meetpotentialfuturerequirements Deferredfinal3B7878of14onfirmorder A320orderbookrestructured

0.4 1.0

0.6

0.8

0.8

FY14F
($B) NetCapex1 Movementinleaseliabilities2 NetCapex&LeaseInvestment

FY15F
FY14F 1.2 (0.2) 1.0

FY16F
FY15F 1.0 (0.2) 0.8 FY16F 0.9 (0.1) 0.8

Capex planprovidesforinvestmentin maintainingcompetitiveadvantages, preservingflexibilitytoadjustspending

1. Excludes proceeds/payments relating to asset disposals/acquisitions, includes payments for investments in associates. 2. Movement in on and off balance sheet lease debt including the movement in operating lease liabilities (calculated as the present value of minimum lease payments for aircraft operating leases which, in accordance with AASB 117: Leases, is not recognised on balance sheet) and the movement in aircraftrelated Japanese operating leases (with call options) accounted for in financing cash flows.

33

4.StructuralReviewUpdate

UnlockingvaluetofundTransformationandstrengthencorebusiness
1. Saleofnoncoreassetstounlockcapital Brisbaneairportterminalleasereturn:$112m1 DiscussionscontinuewithMelbourneandSydneyairports

2. ReviewhasconfirmedQantasGrouphasvaluableanddesirableassetsacrossa

diversifiedportfolio.Qantaswilltakethenecessarytimetomaketherightstrategic decisionsforthefuture.
Nofinaldecisionsmadeonotherassets

1. Proceeds from lease return together with related assets.

34

5.LongtermCompetitiveness

Strengthenedcoreforsustainable,profitablegrowth
THEFIRSTCHOICEFORCUSTOMERSINTHEMARKETSWESERVE

QantasGroupinFY17
Profitable Competitivecostbase Continuedleadingproductand

service
Strongbalancesheet Improvingcreditprofile

Growing froma stronger base

AUSTRALIASLEADINGAIRLINES ANDLOYALTYBUSINESS

SUSTAINABLERETURNSFORSHAREHOLDERS
35

Outlook
TheGroups2H14operatingenvironmentremainsverychallengingandvolatile:
Softunderlyingdomesticdemandcontinuinginseasonallyweakerhalf DomesticandInternationalyieldsandloadsexpectedtoremaindepressed

CurrentGroupoperatingexpectations:
Groupcapacitytoincreaseby33.5%in2H14comparedto2H13 Groupdomesticcapacitytoincreaseby34%in2H14comparedto2H13,whilst

maintainingflexibility
Underlyingfuelcostsexpectedtobe~$4.6b1 inFY14

NoGroupprofitguidanceprovidedatthistimeduetothemajortransformationbeing undertakenbyQantas,andthehighdegreeofvolatilityanduncertaintyinthe competitiveenvironment,globaleconomicconditions,fuelpricesandFXrates.

36

1. As at 25 February 2014, excluding carbon tax.

Disclaimer&ASICGuidance
ThisPresentationhasbeenpreparedbyQantasAirwaysLimited(ABN16009661901)(Qantas). Summaryinformation ThisPresentationcontainssummaryinformationaboutQantasanditssubsidiaries(QantasGroup)andtheiractivitiescurrentasat27February2014.TheinformationinthisPresentation doesnotpurporttobecomplete.Itshould bereadinconjunctionwiththeQantasGroupsotherperiodicandcontinuousdisclosureannouncementslodgedwiththeAustralianSecurities Exchange,whichareavailableatwww.asx.com.au. Notfinancialproductadvice ThisPresentationisforinformationpurposesonlyandisnotfinancialproductorinvestmentadviceorarecommendation toacquireQantassharesandhasbeenpreparedwithouttakingintoaccounttheobjectives,financial situationorneedsofindividuals.Beforemakinganinvestmentdecisionprospectiveinvestorsshouldconsidertheappropriatenessoftheinformationhavingregardtotheirownobjectives,financialsituationandneedsandseek legalandtaxationadviceappropriatetotheirjurisdiction.QantasisnotlicensedtoprovidefinancialproductadviceinrespectofQantasshares.CoolingoffrightsdonotapplytotheacquisitionofQantasshares. Financialdata AlldollarvaluesareinAustraliandollars(A$)andfinancialdataispresentedwithinthesixmonthsended31December2013unlessotherwisestated. Futureperformance Forwardlookingstatements, opinionsandestimates providedinthisPresentationarebasedonassumptionsandcontingencieswhicharesubjecttochangewithoutnotice, asarestatements aboutmarketandindustrytrends, whicharebasedoninterpretations ofcurrentmarketconditions.Forwardlookingstatementsincludingprojections,guidanceonfutureearningsandestimatesareprovidedasageneralguideonlyandshouldnotberelieduponas anindicationorguaranteeoffutureperformance. AninvestmentinQantassharesissubjecttoinvestmentandotherknownandunknownrisks,someofwhicharebeyondthecontrol oftheQantasGroup,includingpossibledelaysinrepaymentandlossofincomeandprincipal invested.Qantasdoesnotguaranteeanyparticular rateofreturnortheperformance oftheQantasGroupnordoesitguaranteetherepaymentofcapitalfromQantasoranyparticular taxtreatment. Personsshouldhaveregard totherisksoutlinedinthisPresentation. Norepresentationorwarranty,expressorimplied,ismadeastothefairness,accuracy, completenessorcorrectness oftheinformation,opinionsandconclusionscontainedinthisPresentation.Tothemaximumextentpermitted bylaw,noneofQantas,itsdirectors, employeesoragents,noranyotherpersonaccepts anyliability,including,withoutlimitation,anyliabilityarisingoutoffaultornegligence,foranylossarisingfromtheuseoftheinformation containedinthisPresentation.Inparticular, norepresentationorwarranty,expressorimpliedisgivenastotheaccuracy, completenessorcorrectness, likelihoodofachievementorreasonablenessofanyforecasts, prospectsor returnscontainedinthisPresentationnorisanyobligationassumedtoupdatesuchinformation.Suchforecasts, prospectsor returnsarebytheirnaturesubjecttosignificantuncertaintiesandcontingencies.Beforemakingan investmentdecision,youshouldconsider,withorwithouttheassistanceofafinancialadviser,whetheraninvestmentisappropriateinlightofyourparticularinvestmentneeds,objectivesandfinancialcircumstances. Pastperformance Pastperformance informationgiveninthisPresentationisgivenforillustrativepurposesonlyandshouldnotbereliedupon as (andisnot)anindicationoffutureperformance. Notanoffer ThisPresentationisnot,andshouldnotbeconsidered,anofferoraninvitationtoacquireQantassharesoranyotherfinancialproducts.

ASICGUIDANCE InDecember2011ASICissuedRegulatoryGuide230.TocomplywiththisGuide,Qantasisrequiredtomakeaclear statementabout whetherinformationdisclosedindocumentsotherthanthefinancialreporthasbeenauditedor reviewedinaccordance withAustralianAuditingStandards.Inlinewithpreviousyears,thisPresentation isunaudited.Notwithstandingthis,thePresentationcontainsdisclosureswhichareextractedorderivedfromthe ConsolidatedInterimFinancialReportforthehalfyearended31December2013whichisreviewedbytheGroupsIndependentAuditor.

37