Virgin Atlantic is becoming the first airline to reduce fuel surcharge with £5
Commenting on the development, a Virgin spokesperson said: “Virgin Atlantic has decided to reduce its fuel surcharge by £5 (from £30
down to £25) per sector on all its tickets sold in the UK from Monday 21
November. The decision has been taken in light of the recent decrease in
the price of oil and we felt it only fair to pass it on to our passengers.
“However, future oil prices are predicted to be higher than current levels
and we will keep the surcharge under review and adjust it when appropriate.
“Our fuel costs last year (end Feb 05) amounted to over £293m (22% of the
airline’s operating costs) - £60m higher than budgeted. The fuel
surcharges only recovered around one third of this increase. It now looks
likely that fuel could exceed £380m of costs in the current year. At that
point fuel would amount to 25% of the airline’s operating costs - an
increase of 50% over two years.”