The Qantas group will provide its domestic and international customers with the option of making their flights carbon neutral.
Australian minister for the environment and water resources, Malcolm Turnbull, said that the company had received certification under the government's greenhouse friendly initiative.
Mr Turnbull described the approval as a "great achievement" by the airline group.
He added: "As a result of this action, Australia is now the only country in the world where all of our airlines offer customers the option of flying carbon-neutral.
"Travellers will be offered the option to purchase a Greenhouse Friendly carbon-neutral flight. The price will not be substantially higher, but it will make a significant difference to the environment."
Qantas is expected to save around 40,000 tonnes of greenhouse gas emissions through offsets on the first day of the initiative and around 100,000 tonnes a year by making all staff business air travel carbon neutral.Airport Hotels
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