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Last Updated: Friday, 13 October 2006, 18:31 GMT 19:31 UK
Virgin Atlantic reduces fuel levy
Virgin Atlantic Airbus A340_600
Fuel accounts for about a third of Virgin's operating costs
Virgin Atlantic has become the latest airline to cut its fuel surcharge, after a fall in oil prices.

The firm said fuel levies on all its international journeys would be reduced by 5 per flight to 30.

Oil prices have fallen to around $59 a barrel - after surging to record highs above $78 in July.

On Friday, Germany's national carrier, Lufthansa also said it was cutting its fuel surcharge, while KLM announced a similar reduction earlier in the week.

Virgin Atlantic chief executive Steve Ridgway said that fuel accounted for about a third of the company's costs, and that only half the extra outgoings were covered by the charge.

"With lower oil prices, we can now pass some of the small savings we are making back to our travellers," he said.

"We will continue to keep the surcharge under review, depending on the price of oil and the total costs to the business."


SEE ALSO
BA pair quit amid surcharge probe
09 Oct 06 |  Business
KLM unveils fuel surcharge cuts
27 Sep 06 |  Business
Virgin Atlantic raises fuel levy
22 Mar 06 |  Business

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