Airline to reduce fuel surcharge

Domestic and inertnational travelers will soon reap the benefits of falling oil prices.

Budget airline Jetstar announced it would reduce its fuel surcharges, in line with recent price declines.

The fuel surcharge for a Jetstar domestic flight would come down 50 per cent, from $22 to $11. International fuel surcharges would be reduced from $36 for long haul flights. Passengers would also save $25 on transtasman flights.

Last week the price of oil fell below US$40 a barrel for the first time since July 2004. Last night it was US$42.94 a barrel.

An Air New Zealand spokeswoman said fares had dropped significantly in the past three months.