Malaysia Airlines (MAS) said today it would slash fuel surcharges on its international flights by as much as 73 percent to boost business as the global economic slowdown hits.

The national carrier will also scrap fuel surcharges on its flights to Singapore and Brunei, it said in a statement.

The move comes after a steep decline in fuel prices, and two weeks after it removed surcharges on all domestic flights.

Its rival, Kuala Lumpur-based budget carrier AirAsia, scrapped fuel surcharges on all its flights two months ago.

"The latest revision in fuel surcharge is to ensure even more competitive pricing," Malaysia Airlines commercial director Rashid Khan said.

Surcharges will be reduced by between US$100 and US$210 (RM360 and RM720) on flights to Africa, Australia, China, New Zealand, the Middle East, and North America.

Rashid said that despite recent falls in the oil price, the airline's fuel costs were still higher than when surcharges were first introduced in 2004.

Airlines use jet fuel, which is currently priced at US$55 per barrel and is more expensive than crude oil, which is hovering around US$42.