9-Mar-2011 9:52 AM

Carbon taxes to hurt Qantas

Australia's Government plans to introduce a domestic carbon pricing regime which will threaten Qantas’ profitability, and complicate its efforts to mitigate the affect of carbon taxes in key aviation markets internationally (The Australian Financial Review, 09-Mar-2011). Analysts expect the hit to Qantas’ annual earnings from a domestic carbon tax of AUD20 (USD20) a tonne could be up to AUD100 million unless passed onto passengers. This figure does not include the CO2-related costs the airline will incur in international markets such as New Zealand and the European Union. The Australian Government plans to introduce the carbon tax on 01-Jul-2011. Qantas rival Virgin Blue does not operate into Europe, nor does it operate domestic services in New Zealand.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More