Friday, May 4, 2012
Soaring fuel costs coupled with no relief from the Obama administration forced Delta Airlines to take the unusual step of buying its own oil refinery near Philadelphia, PA.
Delta Air Lines will buy the Trainer Oil refinery in Trainer, PA, about 10 miles south of Philadelphia, from Conoco Phillips for about $150 million, the airline said in a statement. Trainer can process 185,000 barrels of oil daily.
The refinery will fulfill 80% of the airline’s fuel requirements while saving them $300 million a year. The largest U.S. airline, Delta spent $11.7 billion on fuel in 2011, making up 36% of its operating costs, up from 30% in 2010. Fuel is Delta’s biggest expense, as it is with every airline.
Best of all, according to PA Gov. Tom Corbett, the move will save 5,000 local jobs.