I’m surprised none of the airlines did this earlier, even coming together to buy or build a single refinery that was dedicated to just creating airline fuel.
Do they also own their own oil wells?
Delta was smart
Bombshell! A big Corp does something smart for a change.
They could just protect themselves with futures contracts instead of going through all of that. That’s what they’re for.
The article, which is written by a dumbass, doesn’t say that the refinery is here in Trainer, PA. I go by it ocasionally and knew it was not owned by the large oil companies. Just tonight at dinner with my friend of 65 years, we talked about refineries as my dad worked at Atlantic, then Richfield. He thot they were all gone and i said no this one was still here. as well as the one in NJ and Chesapeake city. I’ll have to let him know it is owned by Delta.
The parent Delta owns an airline and refinery and a few other things. The refinery is making money and the airline is hurting. The refinery sells it fuel for market price to all comers. Giving Delta Airlines a cheap price just keeps the refinery from making as much money as it could while the airline makes more money than it should.
Owning a refinery is simply a hedge on fuel prices. It could have been done with financial instruments but that would have hurt profits. The refinery has been a mediocre investment as are most refineries.