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British Airways is reducing its fuel surcharge by as much as £13 in response to Virgin Atlantic's surcharge cuts last night.

British Airways said World Traveller passengers will pay £13 less on longer-haul flights and £10 less to short-haul destinations, while World Traveller Plus passengers will pay £6.50 less on longer sectors and £5 on shorter sectors.

Last night, Virgin Atlantic said it would cut fuel surcharges on economy and premium economy seats on falling oil prices.

Fuel surcharges are added to the cost of a flight by several major airlines as the price of oil soared.

Although oil prices have fallen back from their July high of $147 a barrel, many airlines have maintained the charge.

According to British Airways, the reduction in the fuel surcharge is not to do with the fall in the price of oil – as British Airways, like most airlines, hedges the cost of fuel to avoid unpredictable price changes.

British Airways said it constantly monitors the fuel surcharge and adjusts it as appropriate, in line with other airlines.

The airline industry has been squeezed by high costs and falling passenger numbers as consumer cut back spending in the expectation of a recession.

Passenger numbers fell by 4.8 per cent in September for British Airways, while several other competitors have gone into administration.