Since 1 July 2012, this cost recovery has been unsustainable due to the challenging conditions in the Australian aviation industry.
When the carbon price was introduced, Qantas added a small surcharge to domestic fares to reflect the impact on our cost base and attempt to recover some of that cost.
Since 1 July 2012, this cost recovery has been unsustainable due to the challenging conditions in the Australian aviation industry. The table below indicates the estimated impact of the carbon price on Qantas per passenger, per sector, rather than any additional revenue we are collecting.
The estimate is calculated by dividing the domestic network into four zones based on distance then using historical fuel consumption and passenger numbers to calculate a per passenger charge.
Zone Distance (km) Charge AUD including GST per sector 1 1 - 700 $1.93 2 701 - 1200 $2.95 3 1201 - 1900 $4.24 4 1901 + $7.25
Note: These calculations are averaged out for all flights over a particular zone and are based on historical data, the estimates produced are not precise and there is a margin for error. A different method of calculation may also be used at some time in the future.
Domestic airlines were exposed to the full starting carbon price of $23 per tonne through an increase in aviation fuel excise from 1 July 2012 and did not have access to transitional assistance or compensation arrangements.
The carbon price does not apply to international flights. Flights to and from Europe will be affected by the European Union's Emissions Trading Scheme (EU ETS), however the inclusion of aviation under the EU ETS has been largely suspended while global agreement is being reached on an alternative measure to deliver aviation emissions reductions.
