Investor Presentaiton

QANTAS INTERNATIONAL Reshaping our cost base through Qantas Transformation Non-fuel unit cost improved by 15%¹ since FY12 • Legacy cost base issues largely addressed • Reconfigurations delivering improved economics Non-Fuel • Cost base becoming more competitive versus peers in key Qantas International markets Unit Cost Improvement 15%¹ FY12 FY15 Aircraft utilisation increased by 16% since FY12² • • Four-engine aircraft focused on longer sectors 'Natural ground time' used for maintenance Engineering and ground handling efficiency gains LAX³ hangar investment, operational late FY16 Fuel FY12 10%4 FY15 QANTAS INTERNATIONAL TRANSFORMATION ON TRACK TO DELIVER >$800M OF $2B GROUP BENEFITS BY FY17 1. Non fuel unit cost calculated as Underlying EBIT less total revenue and fuel, adjusted for changes in foreign exchange rates per ASK. 2. Based on average block hours per aircraft versus FY15 forecast. 3. Los Angeles. 4. Fuel unit cost is calculated as total fuel per ASK and includes price and efficiencies achieved through fleet mix. FY12 versus FY15 forecast. 124

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