The company will completely drop its $19 fuel surcharge for a one-way domestic flight while the fuel surcharge for Pacific Blue and Polynesian Blue one-way international flights will fall by $10 to $25, effective December 31.
It said the reduction of fuel surcharges on these overseas flights was the second in as many months.
Chief executive Brett Godfrey said the move reaffirmed the company's commitment to "keeping the air fair''.
"We base our decisions on fuel surcharges on a floating average - not the (oil) spot price - and now that we have seen a consistent reduction in that it is only fair and right to pass those savings onto our guests,'' Mr Godfrey said.
Shares in Virgin Blue (vba.ASX:Quote,News) fell 1 cent to 28.5 cents at 2.07pm (AEDT).
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