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Published on Thursday, January 22, 2015

Virgin Australia dropping fuel surcharges for US flights



Virgin Australia said it will reduce ticket prices for flights from Australia to the US in response to lower fuel prices.

Taking effect on Friday, January 23, fuel charges for economy and premium economy fares are being cut by A$40 (about US$32) and business class fares will fall by A$50 (US$40).

"These reductions reflect the benefits of the decline in global oil prices along with the negative impact of the depreciating Australian dollar," Virgin said, adding that it expects fuel costs to remain at lower levels for some time.

Crude oil prices have fallen below US$50 a barrel from a high of about US$115 a barrel in June 2014.

In fact, fuel surcharges are effectively being scrapped on Virgin Australia US flights.

It said it will now incorporate the fuel charge for US flights into its base fare, in line with all other domestic and international routes in its network.

"Fuel costs for those airfares are treated in the same way as other operating expenses and incorporated into the base fare, rather than being charged separately as a fuel surcharge," the airline said.

Virgin Australia operates daily departures from Brisbane and Sydney to Los Angeles.

Fuel surcharges on rival Qantas lights to the US are an average A$680 (US$550) per round trip in economy and A$780 (US$630) in business class.

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