A Memo from the Airlines: Help!

Today, in my inbox, I received a letter from 12 Airline CEOs. No, it wasn’t for me personally, but it was sent out from the frequent flyer program email systems that each of those airlines have. It urges consumers to complain to congress about the rising fuel prices. 

The cost of jet fuel is nearly twice of what it was a year ago. It’s no doubt that it is an important issue. It’s interesting to note the 12 airline CEOs included in that list. They are from the following airlines: AirTran Airways, American Airlines, Delta Air Lines, JetBlue Airways, Northwest Airlines, United Air Lines, US Airways, Southwest Airlines, Hawaiian Airlines, Continental Airlines, and Alaska Airlines. That covers just about all of America’s top airlines.

So, they claim that speculators buy large amounts of oil and sell it to each other. Then, the price goes up with each trade and consumers are the ones that have to pay. 

The letter links to a site with a pre-written letter for you to send to your local state representative and state senators. 

I’m surprised it came. Never did I think that they would send a joint letter together. The letter is expected to reach millions of frequent flyer members. If we were to have a few more days like today, where the price of fuel decreased a number of dollars, then I think they’re set. Obviously, that won’t be happening. Instead, Airlines have the trouble of spending 40% or more of their costs on fuel. I hope congress does something during Congress vs. Oil, Round two. The one dollar rise in oil adds a $465 million dollar, all together, price to the airlines’ bills. The airlines hope that congress can make trading commodities fairer. We’ll have to see how this plays out.