Annual Financial Results12 months

ended 30 September 2005

Brett GodfreyManaging Director16 November 2005

1

Financial Highlights

-Nil25.0 centsDividend per share

10.1 cents

$105.2

$148.4

$379.5

$1,755.7

2005 $ m

-40.9%17.1 centsEarnings Per Share

-33.2%$157.4Net Profit After Tax

-33.8%$224.3Profit Before Tax

-11.2%$427.2EBITDAR

+ 14.6%$1,532.6Revenue

% Increase / Decrease

2004 $ m12 months to 30

September

2

Operating Highlights

- 3.0%6.22 cents6.03 centsCASK – excluding fuel

+ 1.2%10.5110.64Yield – scheduled revenue

7.84 cents

48.8

76.8%

20.4 billion

15.7 billion

13.4 million

2005

+4.9%7.47 centsCASK – including fuel

+ 12.4%44.3Average Aircraft

- 2.1 pts78.9%Load Factor - revenue

+ 16.6%17.5 billionASKs

+ 13.8%13.8 billionRPKs

+ 13.6%11.8 millionPassengers carried

%

Increase/Decrease

2004 12 months to 30 September

3

Virgin Blue – the last 12 monthsA

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Jan

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4

Group Strategy

Improve quality and reduce volatility of revenue streams

Maintain superior operational performance

Product development and new business opportunities

Keep driving cost control culture

5

Positioning ourselves to improve revenue streams

COST

YIELD

QANTAS DOMESTIC

JETSTAR

RYANAIR

AIR ASIA

VIRGIN BLUE 2000

VIRGIN BLUE TODAY

Legacy

Dinosaurs

Low Cost Carrier

New World Carrier

SABENA

PAN AM

6

Revenue Improving yield environment

Yield (Scheduled Revenue)

13.05

11.77

10.4010.65

8.00

9.00

10.00

11.00

12.00

13.00

14.00

15.00

FY01/02 FY02/03 FY03/04 FY04/050%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yield ASK Growth

7

Improving Revenue

Focus on improving quality of Revenue – increase yield and reduce volatility

Increase penetration of business market

Elevate market/brand penetration

Product improvement

Interline and ancillary revenue – new revenue sources, higher margins

Branding and marketing targeted spend

8

Operational Performance - OTP

70

75

80

85

90

95

Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05

OTP

Per

cent

age

JetstarQantasVirgin Blue

Source: DOTARS

Average:

Jetstar 84.8%

Qantas 83.9%

Virgin Blue 90.4%

9

Product Improvement Supports Move Upmarket into Business Market

Frequency via trunk routes

Blue Room

Web Check-in

Kiosks

Blue Plus Fares

Corporate branding

API

Others

Cost neutral or better

Delayed launch

• rollout still 2006

Will provide the only live individual seat-back IFE in Australia

• Available on all flights

• Leapfrogs competitors IFE product

Live2Air

“Velocity”

Launched yesterday

Survey evidence showed lack of program biggest barrier to corporate guests flying Virgin Blue

Any seat, no fee, protected

Entering a monopoly market

Highly competitive

Loyalty Program

10

Other Revenue Streams – Higher Margins Lower Volatility

APINew API technology allows Virgin Blue to Codeshare with any international carrier• Estimated to account for up

to 15% of Qantas traffic which has been locked up until now

Focus on major, quality carriers for volume of traffic and upmarket associationFirst deal being road tested with VSMore planned for 2006Provides interface to Corporate Travel Buyers

Ancillary revenue

On board productBlue Holidays dynamic packagingCar hireHotelsInsurance

11

Non-Flying Revenue – Area for Growth

13.6%

7.2%4.9% 4.3%

2.0%0%

5%

10%

15%

20%

Ryanair Easyjet VirginBlue

Jetblue Southwest

Ancillary Revenue as Percentage of Total Revenue

12

Controllable Costs Continue to be Driven Downwards

Average cost per barrel of Jet Fuel has increased more than 76%

As a result, CASK rose in 2H05

Price impact (ASK adjusted) in 2004/5 was $115 million

Non-fuel costs well under control

Driven by scale and productivity initiatives

Still lowest cost airline in Australia

6.48 6.00 6.08 5.98

1.251.26 1.63 1.97

0

1

2

3

4

5

6

7

8

9

10

1H04 2H04 1H05 2H05

Other Fuel

Cost per ASK (cents)

7.737.26 7.71 7.95

13

Fleet StrategyContinue to operate one of the youngest fleets in the world

Fleet profile in next 12 months

4 new 737-800 to be added

2 leased 737-800 to be returned (one in FY06 and one in FY07)

ASK growth in FY06 under 2.5%

14

Capital Management

Full year dividend of 25 cents per share

Policy going forward to pay annual dividend subject to capital management strategy

No commitment to underwrite future dividends.

15

Outlook2004/05 Tough Year

Fuel price increase had impact of $115 million before taxHighly competitive environment, especially with pressure on yieldsConsolidation and focus on product development broadened our appeal.

2005/06 …Fuel not expected to return to previous levels (FY04 –US$35bbl)Market capacity more closely aligned to demand.Corporate initiatives expected to take root.Further cost initiatives expected to be driven through

16

Thank You