Qantas increases airfares for all flights

Qantas has increased its fares on domestic and international routes in response to increased fuel costs and carbon pricing schemes in Australia and Europe.

International fares booked in Australia will rise by as much as $60 and domestic fares will rise by between $3 and $6.

‘‘Higher jet fuel costs and carbon pricing will impact future ticket prices for Qantas and Jetstar passengers travelling domestically and internationally,’’ the airline group said in a statement.

Qantas' fuel costs for the six months to December 31 were $2.2 billion, up by about $450 million on the previous year.

From February 15, one-way surcharges on flights from Australia to London and Frankfurt will increase by $60 to $350, and on flights to the United States the one-way surcharge will also rise by $60, to $310.

Surcharges on flights to South America and South Africa will increase by $40 to $240.
Flights to Asia and Honolulu will increase by $20.

Changes to domestic fares will take effect from February 9.

Year-round fares on the Sydney and Melbourne route will rise by $5 to $122, while Brisbane and Melbourne flight fares will rise by $4 to $159.

Qantas said carbon pricing in Australia from July 1 will have an estimated cost to the group of $110 million to $115 million in the 2012/13 year.

Airlines are also now included in the European Union's emissions trading scheme, which will cost Qantas an estimated $2.3 million in 2012, it said.

Qantas will introduce one-way carbon surcharges from July 1, ranging from $1.82 to $6.86, depending on the flight distance.

All Jetstar domestic fares will increase by $10 from July 1, in response to fuel costs and carbon pricing.

In late December Europe's highest court gave unreserved backing to an EU law to charge airlines for carbon emissions on flights to and from Europe, a decision likely to escalate tension with trading partners, especially the United States.

The court ruled against a group of US airlines that had challenged a law requiring that all airlines flying to and from European Union airports will have to buy permits under the EU's emissions trading scheme from January 1. The initial cost is expected to be minimal but would rise to an estimated 9 billion euros ($A11.6 billion) by the end of 2020.

Qantas said at the time it would be passing on the costs to passengers.

AAP

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