By Adam Levine-Weinberg:On April 30, Delta Air Lines (DAL) bought a 185,000 barrel per day (bpd) oil refinery in Trainer, Pa. from Conoco Phillips (COP). Delta's goal for this transaction is to mitigate risk stemming from the "crack spread" (the price difference between crude oil and jet fuel) and thus generate cost savings.
“We’re the only operator of a refinery that wants to see gas prices come down”
NEW YORK — Making money in the refining business is generally a pretty straightforward proposition: sell your fuel at the highest possible price relative to cost.
By Helix Investment Management:Airlines are a notoriously difficult business. From fuel costs to the capital intensity needed to run an airline, this industry is certainly a difficult one, unless you are Southwest (LUV), which is the only airline to have never filed for bankruptcy. But despite the difficulties of the airline industry, not every company needs to be avoided.
US-based Delta Air Lines is to become the first ever to buy an oil refinery to fuel its own fleet, a plan the company says will bring annual savings of $300 million. It plans to purchase a refinery from ConocoPhillips, with BP to supply crude.
Delta Air Lines, Inc. (NYSE:DAL) officially announced plans to launch codeshare flights with Argentina-based Aerolineas Airlines. The new flights would provide passengers of both airlines to travel between the United States, Argentina, and Uruguay with increased travel options.