Airline CEOs ask customers to lobby Congress on oil

NEW YORK (Reuters) - Major U.S. airlines asked customers on Thursday to lobby Congress on legislation to curb speculation in energy markets, which carriers blame for a 50 percent jump in fuel costs this year.

Skyrocketing fuel prices have forced airlines to slash jobs and capacity, raise fares, retire planes and introduce luggage and other fees to survive.

"We need your help," chief executives of 12 airlines wrote in an open letter to customers. "Get more information and contact Congress."

The letter signed by chiefs of Delta Air Lines Inc (DAL.N), Northwest Airlines Corp NWA.N, AMR Corp's (AMR.N) American Airlines, Continental Airlines Inc (CAL.N) and other carriers told customers that more regulation is required to control oil market speculation.

It was the second time in recent weeks that major airlines made a coordinated public push on the issue. On Friday, carriers plan to join unions, truckers, and other travel industry interests in another lobbying initiative.

Multiple proposals in Congress seek to rein in what many U.S. lawmakers and some energy experts also believe is excessive market speculation. The Senate may unveil legislation next week. The House of Representatives is holding hearings this week to hammer out its own bill.

U.S. airlines project up to $10 billion in losses in 2008 due to fuel costs that could top $61 billion this year. Some Wall Street analysts believe fuel prices, if unchecked, could result in more bankruptcies.

Executives said in their letter long established regulations to control speculators have weakened or been removed. "We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight," the CEOs wrote.

The executives said some market experts estimate that current oil prices reflect as much as $30 to $60 per barrel in speculative costs.