Delta Air Lines buys oil refinery to save USD 300 million a year on fuel

Delta Air Lines is to acquire an oil refinery in the US. The deal is an industry first and the plan is to save money on fuel costs. The Trainer refinery costs USD 180 million, towards which Delta Air Lines will receive a USD 30 million grant, the airline has also announced USD 100 million further investments in the Philadelphia site. Jet fuel from the refinery, along with jet fuel acquired by swapping petrol and diesel produced, will provide 80 percent of Delta's fuel needs in the US. "Acquiring the Trainer refinery is an innovative approach to managing our largest expense," said Delta CEO Richard Anderson. He describes the investment as “modest,” saying the price is around the same as for a new wide bodied airplane and the move is predicted to save the company USD 300 million a year. The refinery was threatened with closure before a buyer was found, so the Delta deal will also save jobs at the site on the Delaware river in Pennsylvania, very close to the city of Philadelphia. US airline Delta and the Delta Connection carriers offer services to around 350 destinations in 62 countries on six continents. Headquartered in Atlanta, Delta has 80,000 employees worldwide and operates a fleet of more than 700 aircraft. The Trainer oil refinery can process around 185,000 barrels of crude oil a day and mainly deals with light, low sulfur crude oil. Liam Lever, liam@romania-insider.com