Delta To Start New Trend With Oil Refinery Fuel Hedge

Categories: Industry News | News

Delta announced Monday that they are making a “modest investment”. Delta’s subsidiary Monroe Energy has a deal “in the works” to buy an oil refinery located in Trainer, PA.

How brilliant is this approach? It cuts down on their biggest budget killer, fuel, creates jobs, and really makes Delta a force to be reckoned with if they can pull this off.

This deal doesn’t come with out risk. At about $200 million dollars to buy the refinery and $100 million dollars in proposed improvements, without making this profitable, it could be a big bust.

Ideally though, this could definitely make Delta miles above the other airlines saving the airline an estimated $100 million in fuel costs THIS year.

To read the full article, visit USA Today’s Travel website here.