Delta Air Lines on Monday announced its plans to purchase an oil refinery outside of Philadelphia, which would help reduce its fuel costs. A spokesman for Delta said the company believes the investment is the first of its kind by a major U.S. airline. Delta is expected to purchase the Trainer refinery for $150 million from Phillips 66, a company that is set to be spun off from the energy firm, Conoco Phillips, on Tuesday.
According to a statement, Delta CEO Richard Anderson said, “Acquiring the Trainer refinery is an innovative approach to managing our largest expense. This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast.” Delta expects to spend $100 million to convert the refinery’s existing infrastructure in order to maximize jet fuel production. The airline intends to finalize the purchase by the end of June.
