Virgin Australia cuts fares as fuel costs fall

Virgin Australia's lower fares start from tomorrow.

Virgin Australia has cut some long haul air fares, partly because of falling fuel prices.

The reductions will cut the cost of a round trip between Australia and the United States falling between $A40 and $A50.

"Virgin Australia has monitored the reduction in fuel prices over recent months and, in anticipation that fuel costs will continue to remain at lower levels than the record highs seen in recent years, reductions to these airfares will be made."

The lower fares are effective from tomorrow.

The airline also announced it would get rid of separate fuel surcharges on airfares to the United States airfares sold and originating in Australia to align them with the rest of its flight network.

This will result in fuel costs being incorporated into the base fare, rather than being charged separately.

The airline said global oil prices were just one factor contributing to the price of an airfare. Others included market conditions, operating costs, airport pricing and taxes, currency exchange rates and its hedging position.

Virgin Australia flies to Los Angeles from Sydney and Brisbane.

A spokeswoman said fares across the Tasman were under constant review but there were no plans to cut them on the route that is already highly competitive.

Expedia research and travel agents say airline fares in many parts of the world should fall this year, largely as a result of lower fuel costs.