Qantas statement - impact of carbon price

Sydney, 11 July 2011

The Australian Government's introduction of a carbon price system from 1 July 2012 will have an estimated cost impact of approximately $110-115 million on the Qantas Group in the financial year ending 30 June 2013.

Domestic airlines will be exposed to the full starting carbon price of $23 per tonne through an increase in aviation fuel excise from July 2012 and will not have access to transitional assistance or compensation arrangements. International aviation fuel will be excluded from the carbon price scheme.

Following the transition to an emissions trading scheme in July 2015, aviation fuel excise increases will be determined based on a six-month average of the market price for carbon.

In the context of the significant challenges facing the global aviation industry, the Qantas Group will be unable to absorb the additional costs associated with the carbon price and there will be a full pass-through to customers.

Based on the estimated additional costs, the Qantas Group expects that the price of a single domestic flight sector will increase on average by approximately $3.50 in FY13. Fare increases will vary depending on sector length and will be communicated transparently to consumers.

Issued by Qantas Corporate Communication (5150)