Wednesday, October 15, 2008

Virgin to reduce fuel surcharges


Virgin Atlantic is to cut its fuel surcharges for most passengers in response to a fall in the price of oil.

Surcharges for its economy passengers shorter sector routes will drop from £78 to £68. Longer route economy charges will dip from £109 to £96.

Premium economy charges on shorter routes slide £5 to £83 and will fall by £6.50 to £114.50 on longer routes.

The price of oil has fallen sharply from above $147 a barrel in July to below $80 - making jet fuel cheaper.

Virgin's surcharges for classes above premium economy will remain unchanged.

Observers say that Virgin's cuts will put pressure on rivals such as British Airways to trim their surcharges.

A BA spokesman said: "We keep the issue of fuel surcharges under constant review."

The high cost of jet fuel has been partly blamed for the collapse of several airlines including Oasis, Silverjet and Zoom as well as the travel firm XL.

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