LONDON - BRITISH Airways said on Wednesday it was cutting fuel surcharges on long-haul plane tickets by as much as a third because of tumbling oil prices which slash the cost of jet fuel.

'British Airways will drop its fuel surcharge by as much as a third on longhaul services from Thursday, Dec 18,' the arline said in a brief statement.

'The move reflects the reduction in the price of oil and the airline's fuel hedging policy for 2009/10,' it added.

Hedging is a practice of insuring against future price volatility by buying future deliveries at pre-determined prices.

World oil prices have slumped by about two-thirds in value since striking record high points of above US$147 (S$214) per barrel in July, as the market has been slammed by slowing global economic growth and weak energy demand. -- AFP