British Airways yesterday announced a drop in its fuel surcharge by as much as one-third, on long-haul flights.

A spokesperson said the change was effective immediately, and is a reflection of the "reduction in the price of oil and the airline's hedging policy for 2009/10".

"The reduction in surcharge will mean for a World Traveller (economy) fare of less than nine hours, a reduction of $22 per sector to $107," the spokesperson continued.

"For World Traveller Plus (premium economy) of less than nine hours, there will be a reduction of $30 per sector to $128. For First and Club World (business class) there will be a reduction of $30 per sector to $157."

Travel within the UK and Europe will also be affected – fuel surcharge will be reduced by $6 to $25 per sector on those flights. And Club Europe will see a reduction of $7, to $32 per sector.

Said British Airways' Bermuda manager Marianne Wilcox: "While the price of oil has reduced significantly, it remains a huge challenge. We still expect our fuel bill to be around £3 billion (approximately US$4,509,939,185.52) this year."

She added that the falling oil price is "a symbol of deepening economic turmoil", with the International Air Transport Association predicting the aviation industry will lose $5 billion this year and a further $2.5 billion in 2009.