Delta’s 2012 Gamble on an Oil Refinery Is Paying Off — $300 Million Boost

When Delta Air Lines first announced in 2012 that it was going to acquire a refinery just 23 miles south of Philadelphia, the decision was met with some pushback. 

Industry experts couldn’t understand why Delta would want to purchase an oil refinery given the high operating costs. ConocoPhillips initially planned to shut that refinery down. In fact, no other U.S. airline owns a refinery. A headline on a post from the popular airline industry blog Cranky Flier described Delta’s decision at the time as “Either Brilliant or Insane (or Both).”

But now, with fuel prices at elevated levels despite a recent pullback, Delta’s refinery is providing a nice offset.   

For the second quarter, Delta expects a $300 million benefit from the refinery. During the first quarter, the carrier received approximately a “limited benefit,” CEO Ed Bastian told reporters. 

“To the ex