CHICAGO – United Airlines says its 2008 fuel bill is on pace to hit $9.5 billion based on current prices, or more than $3.5 billion higher than last year.

The nation's No. 2 carrier made the forecast in a statement submitted in Washington to back legislation aimed at addressing the volatility in oil trading.

The subsidiary of UAL Corp. also estimates that its passenger revenue for the second quarter will increase by between 4 percent and 5 percent over a year ago. It says in an investor update that it will take significant second-quarter charges for impairment, severance and other items in connection with cutbacks it announced this month.

Chicago-based United and other airlines are under severe financial pressure from record oil prices.