
The first and second aircraft have landed in Malta and the third is due to arrive shortly, said Liam Fox.
One plane suffered minor damage after coming under small-arms fire, the Ministry of Defence has since revealed.
David Cameron said he was "delighted" at the rescue and called on Libyan leader Col Muammar Gaddafi to "go now".
The prime minister paid tribute to the armed forces' bravery in carrying out an operation "that was not without its difficulties."
The Ministry of Defence said: "We can confirm that during the operation to recover civilians from the Libyan desert, one of our C130 aircraft appears to have suffered minor damage consistent with small arms fire.
"There were no injuries to passengers or crew and the aircraft returned safely to Malta."
Meanwhile, the Royal Navy frigate HMS Cumberland has left Benghazi for Malta carrying about 200 civilians, including 50 Britons.
The Foreign Office believes the bulk of British nationals who want to leave are now out of Libya, said BBC security correspondent Frank Gardner.
Two RAF Hercules flew 150 oil workers, many of them British nationals, to the safety of Malta on Saturday.
One flight carrying some of the rescued workers - 79 British - arrived at Gatwick on Sunday. A second FCO-chartered plane will leave the island either later on Sunday, or on Monday.
Quality control manager Mike O'Donoghue, from Bridlington, North Yorkshire, was among those rescued from a compound in the southern region of Libya.
Continue reading the main storyYou know we owe them perhaps our lives. We don't know - but they were certainly risking theirs”End Quote Mike O'Donoghue Rescued oil worker "About a week ago... we were overrun by local criminal militia. They were coming on site with guns and knives, and intimidating and threatening - loosening off rounds."
The Foreign Office made arrangements to evacuate people from that region, he said, adding that their rescuers were "magic people".
"They're the best in the world. You know we owe them perhaps our lives. We don't know. But they were certainly risking theirs."
Embassy closedThose on board HMS Cumberland will be met in Malta, after a 12-hour sea journey - and flown to the UK on Monday or Tuesday.
The government said HMS York remained in the region and was "ready to assist as required".
Continue reading the main story
It is not unprecedented for the assets of a ruling family to be frozen by UK authorities while they are still in power. The ruling junta in Burma, Saddam Hussein and President Milosevic of Serbia have all endured (or continue to endure) that in the past.
What is interesting is the co-ordinated way in which the Treasury, BIS and FCO have been working on this order behind the scenes for a few days - directly liaising with Britain's largest banks as well as the FSA, BBA and Bank of England.
As soon as all Britons had been extracted out of Libya and the legal permission had been given by the UN, the asset freezing order took effect tonight.
While is it unclear exactly how much Libyan assets in the UK are worth, we can safely say it's in the "hundreds of millions".
Some reports have said that Col Gaddafi's son Saif owns a plush house in Hampstead, north London, but most of the assets are probably of the paper variety.
More details about routes out of Libya are on the Foreign Office website and all options to depart Libya will also be updated on the Foreign Office on Twitter.The FCO is also urging those who have already left Libya to contact them on 0207 008 0000 to ensure they have been accounted for.
About 100,000 people have fled anti-government unrest in Libya over the past week, the UN estimates.
As the Libyan leader, Col Muammar Gaddafi, battles for political survival amid an uprising that began in the east of the country, the UK's foreign secretary said it was time for him to step down.
William Hague told the BBC: "Of course, it is time for Col Gaddafi to go, that is the best hope for Libya."
The UK has also frozen British-held assets of Col Gaddafi and his family.
The move followed Saturday's United Nations Security Council resolution against Libya.
The UK has also announced it has withdrawn Col Gaddafi's diplomatic immunity on British soil. The order also applies to his family and household.
The Foreign Office has closed the British embassy in Tripoli, leaving a skeleton staff working in a different building.
A.nemdil & Press Agencies
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