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Virgin raises prices due to carbon


Virgin Australia says its domestic ticket prices will rise by as much as $6 per flight due to the federal government's carbon pricing scheme.

Virgin said on Tuesday that a $1.50 surcharge would be applied for flights of less than 900 kilometres from March 1, rising to $3 for flights between 901-2000 kilometres and $6 for sectors longer than 2000 kilometres.

"These surcharges are consistent with the initial modelling Virgin Australia announced in July 2011, estimating that the average increase per sector would be $A3.00," Virgin said in a statement on Tuesday.

Separately, the airline said a $US3 ($A2.80) surcharge would be added on all its codeshare flights to European Union countries from March 1.

While Virgin does not operate flights to Europe, the airline sold codeshare flights with Etihad Airways from Abu Dhabi to destinations that were part of the European Union's emissions trading scheme.

"The surcharge is applicable on flights into and out of EU countries only," Virgin said.