Australian company Jetstar is removing most international fuel surcharges on its airfares in response to lower oil and jet fuel prices.
The move follows the removal of all domestic fuel surcharges in Australia by Jetstar and Qantas from 1 January.
Jetstar said from midnight on Thursday, it would remove the $A25 fuel surcharge on trans-Tasman services, the $A35 surcharge on its short haul Asian services and the $A68 surcharge on its international long haul services.
It will maintain the fuel surcharge for tickets sold in Japan.
Jetstar chief executive Bruce Buchanan said the removal of its international fuel surcharges would provide customers greater simplicity and transparency in its fares.
Aviation analyst Matt Crowe from JP Morgan says other airlines will follow JetStar's lead, albeit reluctantly.
He says airlines need to fill their seats and have to find ways to attract customers during the recession.