Fuel accounts for about 25% of Virgin's operating costs

The airline said it would increase its fuel levy to �30 ($55.36) per flight, a rise of �6, after oil prices reached more than $70 a barrel last week.

This latest increase will take place from Wednesday 7 September, it said.

In May, Virgin shrugged off higher fuel costs to reveal a sharp increase in profits to �68m for the year, its highest since 1999.

"The decision has been taken in light of the recent increases in the price of oil which - exacerbated by Hurricane Katrina - reached a new high of over $70 a barrel last week," Virgin said in a statement.

In June this year, the airline raised its fuel levy by �8 per flight when oil was hovering around the $60 per barrel mark.

Analysts expect rival airlines, including BA, to follow Virgin's move.