Carbon Tax Costs Virgin Australia Up To $50 million

The carbon tax will cost Virgin Australia between $45 million to $50 million, the airline said today when announcing it could lose up to $110 million this financial year due to “the difficult economic and competitive environment, one-off pre-tax restructuring and transformation of costs, and the carbon tax” for an expected statutory loss after tax of $95m-$110m.

It’s been a big year for Virgin that’s come at a cost. It bought low cost carrier Tigerair and regional airline Skywest, installed a new Sabre reservations system and proceeded post haste with it’s Game Change Program. The good news for Virgin is that opposition leader Tony Abbott, odds-on favourite at the Federal Election on Sept 7, has promised to abolish the carbon tax.

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