The CEOs of a dozen U.S. airlines, beset by record fuel costs that have caused several to cut jobs, reduce capacity and impose higher fees on customers, are asking for their customers' help to curb the rise of oil prices.
They have cosigned a letter being sent to frequent fliers of their respective carriers, asking customers to contact Congress about the problem of market speculation, which they believe is driving up the price of oil.
"This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers," the letter states.
Lawmakers have cited the problems that high fuel prices cause airlines, trucking companies, farmers and consumers in calling for restrictions on speculative trading.
Northwest Airlines Corp. CEO Douglas Steenland urged lawmakers in June to close loopholes that allow traders to dodge U.S. speculation limits by trading on foreign exchanges or through over-the-counter transactions.
"Our highest priority is to tackle the overall price of fuel, which is now 40 percent of our cost pie," Steenland told lawmakers. "Addressing excessive speculation is the most immediate remedy Congress could deliver."
The letter says speculators buy up large amounts of oil and then sell it to one another again and again. The price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs, the letter says.
It is signed by the CEOs of Northwest Airlines, AirTran Airways, Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, Midwest Airlines, Southwest Airlines, United Airlines and US Airways.