Virgin passes along carbon price

written by australianaviation.com.au | February 29, 2012
Virgin Australia has announced fare increases of up to $6 in response to the carbon tax.

Virgin Australia will raise fares by between $1.50 and $6 in response to the carbon tax, a slightly lower surcharge than the one earlier announced by Qantas.

The fare hike will go into effect alongside the federal government’s carbon pricing scheme on July 1. The surcharge will add $1.50 to one-way flights of up to 900 km, $3 to flights between 901-2000km and $6 to flights over 2000km.

Virgin said it would also levy an additional $2.80 surcharge on codeshare flights with Etihad Airways to Europe in response to the EU’s Emissions Trading Scheme.

Advertisement
Advertisement

Qantas earlier this month announced a carbon tax surcharge of up to $6.86 per flight as part of larger fare increases blamed on high fuel costs.

Virgin has said it believes the carbon tax, initially set at $23 a tonne, will cost it between $45 and $50 million per year. Qantas has put its cost at $110 to $115 million.

Did you know that Australian Aviation Magazine comes digitally? Subscribe to Australian Aviation’s digital magazine for just $59.95 a year! Our app is available on mobile, tablet and PC devices! Subscribe now at australianaviation.com.au.

Each day, our subscribers are more informed with the right information.

SIGN UP to the Australian Aviation magazine for high-quality news and features for just $99.95 per year