After weeks of speculation and pressure from consumer groups and rivals, Aer Lingus yesterday announced plans to cut the cost of its fuel surcharge by €10 each way on transatlantic flights and trips to the Middle East. The reduction applied to all tickets booked from midnight.

This means that the surcharge on flights to or from New York, Boston, Chicago and Dubai have been reduced to €30 and to €35 on its services to Los Angeles. The surcharges were first introduced in May 2006 and this is the first time they have been reduced.

Dermot Mannion, Aer Lingus's chief executive, said he was "pleased" to implement the reductions for customers.

The airline said it currently has hedges in place for about 55 per cent of its fuel requirement for this year at prices ranging from $58-$72 per barrel. The airline's fuel bill for this year is estimated at €200 million, making it one of the biggest costs at the company.

Aer Lingus said it would continue to monitor the cost of fuel prices and would "revisit its approach to surcharges should the cost of fuel decrease further". The reductions will only apply to new bookings for long-haul travel made after midnight, a condition that will disappoint those with existing bookings.