Carbon tax increases Qantas, Virgin Australia ticket prices

In brief: Airlines will pass the cost of the new 'carbon tax' onto travellers, although the average impact will be less than $4 per ticket when the Federal Government's new carbon price system comes into effect from 1 July 2012.

The carbon price scheme will increase the overall cost of aviation fuel used for domestic Australian flights, although international services will not be affected.

Qantas expects the price of a single domestic flight sector will increase "on average by approximately $3.50" from 1 July 2012. "Fare increases will vary depending on sector length and will be communicated transparently to consumers" the airline says.

Virgin Australia tips its own fares to rise by approximately $3 per flight sector, but this "will vary depending on sector length."

David Flynn

David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.