Fuel worries Qantas more than carbon tax

Qantas CEO Alan Joyce said he is more concerned about rising fuel prices than the impact of Australia's recently announced carbon tax (AFP, 27-Jul-2011). Qantas is expected to be among the Australian companies most affected by the new tax. Fuel prices will have a greater impact on air travel demand than the carbon tax, Mr Joyce says. Qantas and Virgin Australia have promised to pass on the effects of the carbon tax to customers, which they say will increase one-way fares an average of between AUD3 to AUD3.50. The carbon tax will cost the Qantas Group between AUD110 million and AUD115 million in FY2013, it has said but "the rise of fuel prices greatly outweighs that", Mr Joyce said. "Our fuel bill this year will be USD4.6 billion."