Qantas Group is expecting the introduction of a carbon price system to impact its cost by around Australian dollar (A$) 110-115 million ($118-124 million) in its financial year ending 30 June 2013.
The Australian government introduced the carbon price system on 1 July.
This will see domestic carriers bearing the full starting carbon price of A$23 per tonne through an increase in aviation fuel excise from July 2012, Qantas said. Domestic carriers also will not have access to transitional assistance or compensation arrangements, Qantas added.
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," said Qantas
The carrier stated that it will be unable to absorb the additional costs associated with the carbon price and will see a full pass-through to its customers.