Qantas

1 Qantas Annual Report 2021 Financial Snapshot 02 Five-year History 03 Keeping the Spirit of Australia flying 04 Chairman s Message 06 CEO s Message 08 Board of Directors 10 Review of Operations 14 Condensed Corporate Governance Statement 29 Directors Report 31 Financial Report 65 Shareholder Information 141 Financial Calendar and Additional Information 142 Cover image: Qantas employees who operated flights to repatriate Australians and to carry essential freight during the ANNUAL REPORT 2021 Contents011 Refer to the Review of Operations section in the Qantas Annual Report 2021 for definitions and explanations of non-statutory measures. Unless otherwise stated, amounts are reported on an underlying DOMESTIC F LY ING C A SH POSITIVE30%INCREASE IN FREQUENT FLYER DOMESTIC FLIGHT REDEMPTIONS IN 2H21 COMPARED WITH PRE-COVID LEVELS46 NEW DOMESTIC ROUTES ANNOUNCED SINCE THE PANDEMIC BEGAN($ ) billionUNDERLYING LOSS BEFORE TAX$267 million NET FREE CASH FLOW 2H21$650 millionANNUALISED STRUCTURAL COST BENEFITS DELIVERED $ billionTOTAL LIQUIDITY($ ) billionSTATUTORY LOSS BEFORE TAX $410 millionUNDERLYING EBITDAQANTAS ANNUAL REPORT 2021 Financial Snapshot1 Other Highlights0220212020201922018220172 revenue and Other Income$M5,93414,2571 7, 9 6 61 7, 1 2 8 16,057 Statutory (Loss)/Profit Before Tax$M(2,351)(2,708)1,1921,3521,181 Statutory (Loss)

2 /Profit After Tax$M(1,728)(1,964)840953853 Underlying (Loss)/Profit Before Tax$M(1,826)1241,3261,5651,401 Underlying Earnings Before Interest and Tax (EBIT)$M(1,525)3951,6081,7471,590 Operating Margin%( ) Earnings per Sharecents per share( ) 7. Earnings per Sharecents per share( )( ) on Invested Capital (ROIC)%( ) Price at 30 June$ per Share3cents per share 251714 Cash flow from operations$M(386)1,0833,1643,4132,704 Net Free Cash Flow$M(1,108)(488)1,6011,4421,309 Net on balance sheet debt$M4,6093,1732,9803,0543,062 Net Debt$M5,8904,7344,7104,9035,212 Net capital expenditure$M6931,5711,5631,9711,534 Unit revenue (RASK)c/A S unit cost4c/A S K( )( )(7. 9 7)(7. 3 7)( 7)Ex-fuel unit cost4c/A S K( )( )( )( )( )FINANCIAL PERFORMANCE1 STATISTICS20212020201920182017 Available Seat Kilometres (ASK)M29,374111,870151,430152,428150,323 revenue Passenger Kilometres (RPK)M18,55792,0271 2 7, 4 9 2126,814121,178 Passengers carried 00015,86640,47555,81355,27353,659 revenue Seat Factor% at end of period3113143143133091 Refer to the Review of Operations section in the Qantas Annual Report 2021 for definitions and explanations of non-statutory measures.

3 Unless otherwise stated, amounts are reported on an underlying 2019 has been restated for the impact of the adoption of aasb 16 Leases and the IFRIC agenda decision in relation to fair value hedges. 2018 has been restated for the impact of aasb 15 revenue from Contracts with Customers, however 2017 continues to be reported under previous accounting Dividend per share is calculated as the interim and final dividend in relation to the relevant financial The comparative period has been adjusted for foreign exchange movements to make it comparable to the current year. 2020 and 2021 reflect the foreign exchange rates as presented in the 2021 Annual Report. The same applies for 2019, 2018, 2017 which have been adjusted for foreign exchange in line with the 2020, 2019 and 2018 Annual Reports respectively.

4 2020 and 2019 have also been adjusted for the impact of the sale of domestic terminal leases and depreciation and HistoryQANTAS ANNUAL REPORT 2021 03 Keeping the Spirit of Australia flyingQANTAS ANNUAL REPORT 2021 The Qantas Group has a proud history of supporting Australia in times of crisis. From Cyclone Tracy and the Egyptian revolution to the Bali Bombings, the national carrier has been there to help. Throughout the COVID pandemic this legacy has continued, working closely with the Federal Government to bring Australians home, support our export industries and share medical aid with our TO REPATRIATE AUSTRALIANS AND MAINTAIN VITAL LINKS WITH PACIFIC ISLAND NATIONS AND TIMOR-LESTE18 millionKILOGRAMS OF AUSTRALIAN EXPORTS, INCLUDING FRESH MILK AND ABALONE TO CHINA, BEEF AND CHEESE TO JAPAN, FRUIT AND VEGGIES TO THAILAND, AND LOBSTERS AND FLOWERS TO THE USA 30,000 AUSTRALIANS WHO HAVE RETURNED HOME ON Qantas REPATRIATION FLIGHTS>2000 FREIGHT FLIGHTS OPERATED, HELPING SUPPORT MORE THAN 130,000 JOBS IN EXPORT INDUSTRIES04 Vaccines being loaded onto aircraft bound for Delhi.

5 Employees assisting with passenger coordination farewelling a repatriation about to depart London on a repatriation flight to Service Supervisor (CSS) Adrienne Innes and Customer Service Manager (CSM) Paul Wason on a repatriation flight from Delhi to delivery of over 50,000 AstraZeneca vaccines to Dili, Timor-Leste in partnership with the Australian Amidst all the COVID-related uncertainty, the Group has done an amazing job of delivering safe and reliable essential services. This past year has been one of ongoing challenge for the Qantas Group, as Australia and the world continued to battle against the COVID-19 pandemic. The impact on aviation and on the national carrier has been stark. Our international flights remained at a virtual standstill and there were only about 30 days across the year when we didn t face some form of domestic travel restriction.

6 Thousands of people lost months of work and, in many cases, their jobs. Unsurprisingly, the Group s revenue fell by two-thirds compared with pre-COVID. To date, the pandemic has cost us more than $16 billion in lost revenue to the end of FY21. That number will keep growing as we wait for travel demand to materially recover. These are the worst trading conditions we ve ever faced and they resulted in a $ billion statutory loss before tax in FY21. But these headline figures don t properly reflect the progress the Group made nor the essential services it kept delivering during the year. Relatively early in the crisis, when the scale of its impact became clear, we announced a three-year recovery plan to make sure the company would first endure, then quickly recover and repair.

7 I m pleased to say that plan which included a lot of hard decisions is working. In the first year of the plan we delivered $650 million of annual cost benefits, which will ultimately grow to $1 billion from FY23 onwards. The efficiency improvements that sit behind these numbers helped drive positive cash flow in the second half of FY21, which enabled us to start paying back our COVID-related debt. That gives us a lot of confidence that when we move beyond lockdowns and border closures, the Qantas Group will perform strongly. Qantas ANNUAL REPORT 2021 Chairman s Message06 Amidst all the COVID-related uncertainty, the Group has done an amazing job of delivering safe and reliable essential services. That has ranged from moving domestic and international freight, to bringing thousands of Australians home on special repatriation flights and keeping regional towns connected.

8 Those services were strongly supported by the Australian Government, who effectively chartered Qantas , Jetstar and other airlines to provide flights that were necessary but otherwise commercially unviable. As well as delivering services to the community, this also provided work to many across the industry and helped retain critical skills. I want to recognise the incredible efforts of people across the Group, who have shown tremendous professionalism and resilience in the face of much uncertainty and conditions that were challenging to say the least. That includes the considerable efforts of the Executive Team led by Alan Joyce, who have steered this company through unchartered territory and are setting it up for recovery. You need only look at many airlines around the world to see things could have gone very differently.

9 I d also like to thank my fellow Directors for their ongoing dedication to a company that spent much of the year in acute crisis mode. In particular, I d like to recognise the service of Barbara Ward and Paul Rayner, who are both retiring at this year s AGM. Barbara and Paul both joined the Qantas Board in 2008 and have provided excellent guidance through some of the biggest challenges the national carrier has faced since privatisation. They leave with our profound gratitude. These retirements take the number of Directors from 10 to eight for the foreseeable COVID crisis has thrown up many unexpected challenges, but with vaccines rolling out globally, we have confidence that the worst of the pandemic is behind us. The Qantas Group has a big role to play in helping Australia recover and reunite, which in turn, is the source of our own recovery.

10 Richard Goyder AOQANTAS ANNUAL REPORT 2021 07 Many times over the past year, when asked how the Qantas Group was coping with COVID, I ve explained that airlines normally have a new flight schedule every six months a summer schedule and a winter schedule. But with sudden border changes and restrictions, we ve had a new schedule almost every week. In many ways, that example sums up our response to this crisis. We ve had to meet it with a level of flexibility that was unthinkable beforehand. We did that when we had to move quickly to take costs out of the business given the sudden drop in revenue . And we ve done it by making the most of the windows of opportunity when we could fly, such as by introducing 46 new domestic routes to tap into changing demand patterns.