Key points: • Underlying PBT1 loss: $252 million • Statutory...

Key points:
• Underlying PBT1
loss: $252 million
• Statutory Loss After Tax: $235 million
• Yield1
excluding FX down 3%
• Revenue: $7.9 billion, down 4%
• Underlying fuel costs1
excluding FX impact: $2.3 billion, up 3%
• Comparable unit costs1
down 2%
• Liquidity: $3 billion

SYDNEY, 27 February 2014: Qantas today announced an Underlying PBT loss of $252 million and
a Statutory Loss After Tax of $235 million for the six months ended 31 December 2013.

The underlying result is in line with guidance and reflects fundamental changes in the Australian
aviation market, with a significant deterioration in earnings during the half.

Chief Executive Officer Alan Joyce said the result was unacceptable and comprehensive action
would be taken in response.

“We are facing some of the toughest conditions Qantas has ever seen,” Mr Joyce said.

“Australia has been hit by a giant wave of international airline capacity, with a 46 per cent increase in
competitor capacity since 2009 – more than double the global increase of 21 per cent over the same
period.

“The Australian domestic market has been distorted by current Australian aviation policy, which
allows Virgin Australia to be majority-owned by three foreign government-backed airlines and yet
retain access to Australian bilateral flying rights.

“Late last year, these three foreign-airline shareholders invested more than $300 million in Virgin
Australia at a time when, as Virgin Australia reported to the ASX on 6 February, it was losing money.
That capital injection has supported continued domestic capacity growth by Virgin Australia despite
its growing losses.

“Qantas has been undertaking its biggest ever transformation over the past four years, cutting
comparable unit costs by 19 per cent over four years, but this is not enough for the circumstances we
face now.

“With structural economic changes being exacerbated by the uneven playing field in domestic
aviation, we must now take actions that are unprecedented in scope and depth.

“We will accelerate our Qantas Transformation program to achieve $2 bil