By James Wilkinson

Airfares are set to fall, following today’s (November 11) decision by Virgin Blue to reduce fuel surcharges by 20 per cent on Virgin Blue domestic and Pacific Blue international flights.

Virgin Blue has reduced fuel surcharges

Following a decline in oil prices, the fuel surcharge has been reduced to $19 for a one-way domestic Virgin Blue flight and $35 for Pacific Blue and Polynesian Blue one-way international flights.

“We are keeping our word. We were reluctant to increase the cost of air travel by even a small amount. However as jet fuel prices continued to rise and rise to extreme levels, like all airlines we were forced to introduce a levy to cover those costs,” said Virgin Blue CEO, Brett Godfrey.

“But we have always promised that if the cost of fuel reversed, we would gladly reverse the surcharge accordingly. That is what we are doing, because that is fair,” he said.