WASHINGTON, June 17 /PRNewswire-FirstCall/ -- Today, United Airlines (NASDAQ:UAUA) issued a statement in support of legislation to increase transparency and resources for the Commodity Futures Trading Commission (CFTC), the federal agency charged with overseeing America's oil markets. In support of measures aimed to directly address the unprecedented price of oil, Chairman, President and Chief Executive Officer Glenn Tilton made the following statement regarding S. 3130, "The Increasing Transparency and Accountability in Oil Prices Act of 2008." "As oil prices reach another all-time high, industry and policymakers must take decisive action to address the volatility and unrelenting rise in fuel prices. Reform and transparency in the energy commodity futures market represents a necessary step toward bringing the price of oil in line with supply and demand. These unprecedented increases have significant impact on our business -- causing repercussions for our passengers and the communities we serve, as well as our employees and shareholders. United supports this legislation and thanks Senator Durbin for his leadership on this issue, which is critical to the health of the aviation industry," said Tilton.
Issue Overview The Air Transport Association estimates that U.S. airlines will spend nearly $60 billion on fuel in 2008 -- an astounding $20 billion more than the cost of fuel last year. Members of Congress are working to reduce speculative trading -- one variable driving the escalating price of oil.
At current prices, United's projected fuel cost for 2008 will be more than $3.5 billion higher than 2007, putting the company's total fuel bill for 2008 at a projected $9.5 billion.
Congress and the industry are taking urgent action to respond to these unprecedented market conditions. Senator Durbin and many other members of Congress are calling for increased regulatory oversight and greater transparency in commodity futures trading.
About United United Airlines (NASDAQ:UAUA) operates more than 3,200* flights a day on United a d United Express to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 965 destinations in 162 countries worldwide. United's 55,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com.
*Based on United's flight schedule between Jan. 1, 2008 and Dec. 31, 2008. DATASOURCE: United Airlines CONTACT: United Airlines, Worldwide Press Office, +1-312-997-8640 Web site: http://www.united.com/
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