Qantas Statement on Credit Rating

Sydney, 20 February 2009

Qantas said today it maintained a strong and stable investment grade rating.

Qantas Chief Executive Officer, Mr Alan Joyce, said Moody's confirmation that Qantas retained an investment grade credit rating with a stable outlook for the Qantas Group affirmed the strength of the business.

"The aviation sector is experiencing a high degree of volatility worldwide, and Qantas has had to confront that," Mr Joyce said.

"We are pleased that Moody's continues to recognise that the Qantas Group is differentiated in the aviation industry by its high degree of structural flexibility.

"Qantas is one of few airlines in the world with an investment grade credit rating and some of our competitors have fallen below this level because they have found it hard to reposition themselves in such a tough economic environment.

"The Qantas Group has both a diversity of revenue streams and a portfolio strategy based on two strong brands, Qantas Airlines and Jetstar, which provide us with considerable flexibility to respond under various market conditions.

"In the current environment we have increased our focus on earnings preservation and conservative cash management, while being careful to continue our strategy of restoring core brand strengths in quality product, operational performance and safety.

"As Moody's says, Qantas has taken a number of measures to mitigate commercial pressures, including capacity reductions, reallocation of routes between brands and the recent equity raising of $500 million.

"Moody's has recognised that the rating outlook for Qantas is stable given the actions taken by Qantas and it expects that the company's financial profile should remain manageable within the rating."

Issued by Qantas Corporate Communication (3888)