Regional airline Rex says the carbon tax caused a 45 per cent nosedive in its annual profit.
"We saw sales plunge almost immediately from 1 July 2012 after the federal government's carbon tax was implemented," executive chairman and major shareholder Lim Kim Hai said.
"Minister Albanese's claim that the impact of the carbon tax would be little more than the cost of a cup of coffee became the understatement of the aviation year."
Regional Express made a profit of $14 million in the 2013/14 financial year, down from $25.5 million in the previous year.
Rex paid $2.4 million in carbon tax in 2012/13, a cost it did not have in the prior year.
But its fuel bill in the 2012/13 financial year was $36.2 million, down six per cent from $38.6 million in the previous year.
The impact of the carbon tax on consumer spending also hurt the company, Mr Kim Hai said.
Revenue of $258 million in 2012/13 was down five per cent from the prior year.
Rex shares dropped 16.5 cents, or 13.8 per cent, to $1.035.
The company said the aviation industry would continue to struggle if Labor wins the September 7 election, but a coalition win would result in some improvement.
Despite that uncertainty, Rex has plans to invest $50 million in its business.
That spending means shareholders will not be paid a final dividend for the 2012/13 year.