Qantas and Jetstar lift fares on all flights

QANTAS has increased its fares on all domestic and international routes in response to increased fuel costs and carbon pricing schemes in Australia and Europe.

Sting in the tail - An increase in fule prices has forced QANTAS to raise its fairs. Photo: Edwina Pickles

International fares booked in Australia will rise by as much as $60 and domestic fares will rise by between $3 and $6.

Qantas says jet fuel is its biggest operational cost and average prices in the financial year so far are at their highest level in three years.

"Higher jet fuel costs and carbon pricing will impact future ticket prices for Qantas and Jetstar passengers travelling domestically and internationally," the airline group said in a statement.

All Jetstar domestic fares will increase by $10 from July 1, Qantas says.

Qantas' fuel costs for the six months to December 31 were $2.2 billion, up by about $450 million on the same period in the previous year.

From February 15, one-way surcharges on flights from Australia to London and Frankfurt will increase by $60 to $350, and on flights to the United States the one-way surcharge will also rise by $60, to $310.

Surcharges on flights to South America and South Africa will increase by $40 to $240.

Flights to Asia and Honolulu will increase by $20.

Changes to domestic fares will take effect on February 9.

Year-round fares on the Sydney and Melbourne route will rise by $5 to $122, while Brisbane and Melbourne flight fares will rise by $4 to $159.

Qantas said carbon pricing in Australia from July 1 would have an estimated cost to the group of $110 million to $115 million in the 2012/13 year.

Airlines were also now included in the European Union's emissions trading scheme, which would cost Qantas an estimated $2.3 million in 2012, it said.

Qantas will introduce one-way carbon surcharges from July 1, ranging from $1.82 to $6.86, depending on the flight distance.

AAP

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