Airlines are failing to pass on savings from recent oil price reductions and are cashing in on fuel surcharges, travel companies say. Agents and tour operators are calling on British Airways, Virgin and other airlines to cut higher prices attributed to fuel to reflect a drop in the price of a barrel of crude oil from a peak of about $147 in mid-July to $114 earlier this week.

Travel companies approached by Times Travel this week said airlines had been quick to raise fares but not so speedy to cut prices as oil became cheaper. Mike Gooley, chairman of Trailfinders, the UK's largest independent travel company, said that the question should be asked why airlines have not reacted. “A reduction in this cost would represent a substantial saving to the consumer,” he added.

Bales Worldwide, the long-haul specialist, held a meeting this week to discuss why airlines are not reducing surcharges. It is one of 29 members of the Association of British Travel Agents that has passed on higher airline ticket prices this year. “We are wondering when prices will come down,” a spokeswoman said.

BA charges a £16 supplement per flight in economy on UK and European flights, £78 on long-haul flights of less than nine hours, and £109 for more than nine hours. It said that it was monitoring oil price falls.

Virgin's economy-class surcharges are £78 on “short” flights to the east coast of the US and to the Caribbean and £109 for longer trips. “When there is a large and sustained price drop we will consider a change,” a spokeswoman said.

Michael O'Leary, chief executive of Ryanair, which does not impose surcharges, said: “BA and others continue to increase fares and impose unjustified fuel surcharges despite the fact that oil prices have fallen 25 per cent in recent weeks.”

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