Investor Presentaiton

QANTAS DOMESTIC Rapid and strategic response to competitive shifts in market Domestic market pressures: FY12-FY14 20% - Competitor reposition into Qantas core segment 15% - Capacity growth ahead of demand 10% - Corporate yields under pressure 5% - Resources sector cooling 0% -5% Qantas Domestic Response -10% CLOSE COST -15% RETAIN REVENUE PREMIUM >15%³ DISADVANTAGE TO -20% <5% BY FY173 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Market Revenue Recovery with Capacity Moderation M Market Capacity Growth¹ Market RASK Growth² 1. Domestic market capacity growth (based on ASKS) compared to prior corresponding period. Source: BITRE. 2. Market RASK (passenger revenue per ASKS) growth compared to the prior corresponding period. Source: BITRE, published company accounts and internal estimates. 3. Qantas mainline and regional operations compared to Virgin Australia mainline and regional operations. Revenue premium based on passenger revenue per ASK. Cost gap based on unit cost and calculated as underlying EBIT less passenger revenue per ASK. Based on published company accounts and internal estimates. 67 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15

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