Carbon Tax and Fuel Costs Cause Qantas Tax Increase

Book with Qantas before Wednesday 09Feb12 to avoid the tax increase and get the best price available.

Qantas will raise fares, increase fuel levies and introduce a carbon fee this month as it tackles rising costs. In a series of measures announced by the airline yesterday, domestic fares on Qantas and QantasLink will increase by an average 2.5% from 09Feb12 as a result of spiralling fuel costs. The carrier also will raise its fuel surcharge on a one-way trip to London and Frankfurt by $60 from 15Feb12, taking the cost to $350, while from the same date flights to Europe will incur a $3.50 carbon fee. The latter charge is the result of the EU emissions scheme that came into effect on 01Jan12. Qantas said the scheme, which forces airlines to pay to a proportion of the carbon emissions generated by their flights, will wipe $2.3 million from its bottom line.

In addition, Qantas will introduce a sliding scale of charges for domestic flights based on the distance flown - ranging from $1.82 to $6.86 – to offset the Australian carbon tax that comes into force in July. These fees will also be payable from 15Feb12 but only for travel after 01Jul12. All Jetstar lead in fares will rise by $10 to combat higher fuel costs and the carbon tax. Meanwhile, all international fuel levies will increase. In addition to the $60 added to London and Frankfurt flights, $20 will be added to one way fares to Asia and Honolulu, taking the levy to $165, while fuel surcharges to South America and South Africa will increase from $200 to $240 one way. Flights to the US will incur a $310 one way fuel levy, a $60 increase.