Qantas reacts to fuel price and carbon tax impacts

Qantas has released details of a comprehensive strategy to deal with high fuel prices and carbon taxes.

The Qantas Group's fuel bill was up more than 25 per cent in the second half of 2011 (compared to the same period the previous year).

In addition, the European Union's emissions tax came into force on 1 January, affecting all flights into the EU.

And Australia's carbon tax regime comes into play on 1 July.

To deal with these additional costs the airline has announced an array of surcharges which will be included in published fares - in effect higher fares.

From 15 February a Qantas one-way ticket to London will cost an extra A$60.

But domestic operations are of course impacted by higher fuel costs, so the airline is lifting Qantas and QantasLink fares from 9 February; with a Sydney-Melbourne flight costing an additional $5.

The EU tax will see Qantas raising fares to London and Frankfurt by $3.50.

The Australian carbon tax will see Qantas domestic fares hiked according to stage length.

Jetstar will increase all domestic fares for flights from 1 July by $10.