A filter element (102) comprising a filter media (106) and a membrane (114). The filter media (106) filters impurities (e.g., water and/or contaminants) from a liquid (e.g., a liquid fuel initially containing impurities) as the liquid passes from the inlet side (110) to the outlet side (112) of the filter element (102). The membrane (114) is permeable to air and impermeable to the liquid and the impurities. The membrane (114) is positioned to provide a bypass from the inlet side (110) to the outlet side (112) of the filter element whereby air intermixed with the fluid will not accumulate on the inlet side (110) of the filter element (102).