Qantas CEO Alan Joyce says the airline was always going to pass on the price of the carbon tax to consumers and won't change its mind now that it's in place.
Asked whether the introduction of the government's $23-a-tonne price on carbon on July 1 had ushered in tougher times for Qantas, Mr Joyce said the company had always been "very clear" on its strategy to deal with the price.
"It only applies to domestic travel, and we have increased air fares I think by an average of $3.50 to cover the carbon tax, and I think it will be recovered through those increases that have gone through," he told reporters in Sydney on Thursday.
"We've always said it would be passed on to the customer."
Mr Joyce says the company is also investing in more fuel-efficient aircraft and reducing on-board weight to lessen the pollution impost.
Speaking at an event to mark a 21-year partnership with children's charity UNICEF, Mr Joyce doused rumours that a group of wealthy individuals including some from Qantas' former management ranks were considering launching a takeover bid for the company.
"There's no formal or informal offer or proposals," he said.
"I think what we read is just pure speculation."