National airline Air Pacific is closely reviewing the fuel price and will make further reductions in the fuel surcharge next year should prices maintain levels that the company can sustain.

Managing director and chief executive officer John Campbell said they have reduced the each way fuel surcharge by US$12 for short-haul and US$24 for long-haul flights following the recent fuel price movements.

He said they had applied for fuel surcharges to recover part of the cost when fuel prices were rising but this did not provide any relief as it did not exceed 50% of the additional costs incurred.

Campbell said the fuel surcharges are a transparent form of partial cost recovery and are entirely separate from airfares.