Airtours Holidays will cut fuel surcharges by as much as two-thirds for winter 2007/08.
Short-haul surcharges will fall from £30 to £10, medium haul from £40 to £15 and long haul from £65 to £25.
A spokesman said the decision had been made following the fall in oil prices to $58 a barrel, as opposed to the record high of $79 over the summer.
Having hedged a greater percentage of its fuel from the start of this year, the MyTravel Group also has greater control of costs in a volatile fuel market.
A letter to agents said: “We have always been committed to reviewing our fuel supplements regularly in line with the movement and stability, or instability, of fuel prices.”
None of the other big operators are cutting surcharges, with Thomas Cook and First Choice staying at £30 for short haul, £40 for medium haul and £65 long haul, while Thomson remains at £25, £40 and £65 respectively.