Qantas has increased its fares on domestic and international routes in response to increased fuel costs and carbon pricing schemes.

International fares will rise by as much as $60 and domestic fares by up to $6.

The Coalition's warning Qantas is just the first of many companies that will introduce a carbon tax surcharge.

But Climate Change Minister Greg Combet says there will be compensation

"The cost impacts are modest and they will be offset by tax cuts and increases in the pensions. 9 out of 10 households will receive increases."

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