Reid confers with airline executives to discuss fuel costs

WASHINGTON -- Senate Majority Leader Harry Reid, D-Nev., met Tuesday with the heads of several major airlines to discuss how to bring down fuel costs to avoid spiraling ticket prices and reduced service to Las Vegas and elsewhere.

Speculation in the oil market, which many believe has contributed to the wild increase in the price of fuel, was the main concern presented by the executives of US Airways, Delta and Northwest, Reid aides said. Also at the meeting was the president of the Airline Transportation Association.

US Airways is the second-largest carrier at McCarran International Airport, after Southwest, and has been cutting flights to Las Vegas as carriers focus on more profitable routes.

"We're working on legislation to address that and I hope Senate Republicans will join us. This issue touches everyone, so the sooner we act the better," Reid said in a statement after the meeting. "And from Nevada's perspective, the sooner people can afford to travel again, the sooner our state will be on the road to economic recovery."

Air travel is down to Las Vegas, where room rates and gambling revenue also are on the decline, and further drops are expected after US Airways announced it was cutting nearly half its flights to the desert city as part of companywide belt-tightening.

Aides said Reid planned to talk to House Speaker Nancy Pelosi, D-Calif., about passing legislation to address oil market speculation after Congress returns from its July 4 recess.

One approach would be a bill introduced Tuesday by Sen. Byron Dorgan, D-N.D., that would require the Commodity Futures Trading Commission to use emergency authority to increase the cost of making certain trades not done by actual producers and purchasers of physical petroleum products.

US Airways' fuel costs increase by $40 million annually for every $1 increase in the price of crude oil, according to Reid aides. Oil prices topped $138 a barrel Tuesday, less than $2 away from crude's trading record.