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An Open Letter to All Airline Customers
Fluctuating fuel costs effects have been devastating to our industry over the past two years. While fuel costs have declined this year in comparison to last, there is still quite a bit of volatility in the prices that affect not only our business, but you personally-- in the prices you pay for fuel for your vehicles as well as goods that are transported to the stores. The single biggest operating cost to AirTran and all other airlines is now fuel.
In the past 15 months, the price of crude oil has gone from $57 a barrel in March 2008 to more than $147 in July 2008, and then back down to less than $32 in December. Oil is now climbing again and closed at more than $68 a barrel earlier this week. There is mounting evidence that the run-up in oil and gas prices is not a result of the fundamental concept of supply and demand, but is being largely driven by excessive speculation.
Just what is Oil Speculation? Increasingly over the past few years, a growing group of financial players with no direct stake in the physical delivery of oil has exercised undue and unchecked influence on the price of oil, causing great pain for consumers and wreaking havoc on American businesses of all kinds - including airlines and their customers. The fundamentals of oil supply and demand are no longer adequate to predict the true price of oil. Excessive speculation in the commodity markets must be brought under control in order to protect market users from fraud.
A growing coalition of airlines, businesses, labor groups and concerned citizens are uniting to prevent oil-market speculation and protect America’s economic recovery. Last summer we participated in the SOS Now campaign with the Air Transport Association (ATA) and many of you got involved in this effort. Public outrage and congressional debate helped deflate the oil bubble and return prices to reasonable levels. You can help make a difference again this year.
Visit www.StopOilSpeculationNow.com to learn more about the harmful effects of reckless speculation and to let your legislators know how you feel. Congress must take action before rising prices derail America’s economic recovery. Congress can stop speculation now by closing known loopholes in trading laws, increasing accountability and requiring strict limits on trading. These reforms, combined with increased domestic energy supply, exploration, alternative energy sources and conservation, will lower energy prices for all Americans.
Together, we can make a difference.
Thank you,
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Chairman, President and Chief Executive Officer AirTran Airways, Inc. |
