Qantas and Jetstar are increasing their domestic and international fares because of rising fuel costs and carbon pricing.

Qantas says its fuel costs increased about $450 million in the second half of last year.

To claw back some of that, the airline will this month increase its surcharge on international fares by up to $60 while domestic fares will jump 2.5 per cent.

Qantas is also seeking to cover the $2 million cost due to the European Union's emissions trading scheme.

Flights to and from Europe will attract a surcharge of $3.50.

To cover Australia's carbon pricing system, from July 1 Qantas passengers will have to pay from $1.82 to $6.86 depending on the flight distance.

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Jetstar will charge a flat rate of $10 to cover both fuel and carbon pricing costs.

Qantas says the carbon tax will cost the two airlines a total of around $115 million.