Delta’s Trainer Refinery Softens Blow of Rising Jet Fuel Prices
Like other airlines, Delta Air Lines paid higher fuel prices this past quarter, but saved seven cents a gallon by owning its own oil refinery in Trainer, reports The Bharat Express-News.
Delta pays an average price of $2.79 per gallon for fuel, up 33% from the last quarter of last year. That cost includes the 7 cents per gallon saving. The refinery also received almost $1.2 billion in third-party sales revenue.
Delta saw booming sales this past quarter.
First-quarter consumer demand was up, driven by spring break travel, office re-openings, and the lifting of travel restrictions.
Delta CEO Ed Bastian said March operations were profitable, despite fuel costs.
“With a strong rebound in demand as Omicron faded, we returned to profitability in the month of March,” Bastian said in a statement.
The company expects a continual rise in fuel prices, between $3.20 and $3.35 a gallon.
Domestic business travel has recovered around 70% for Delta in March, compared to 2019.
International business travel has recovered to around 50%.
Revenue from premium seat sales on domestic flights had fully recovered to 2019 levels last month.
Read more at The Bharat Express-News about Delta’s first-quarter finances and how the refinery in Trainer saved them some money on jet fuel.
Here’s a 2020 video looking at why Delta decided to buy the oil refinery in Trainer.
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