A major airline has taken a drastic step in an effort to beat back high fuel costs. Delta Air Lines announced it would buy its own oil refinery, a move that could cut hundreds of millions of dollars off its biggest expense. Monroe Energy, a subsidiary of the airline, has made an agreement to purchase a Phillips 66 refinery in the borough of Trainer, Pennsylvania for $150 million. Some $30 million of this comes in the form of state funds provided to improve infrastructure and create jobs.
Describing the purchase as a “modest investment” similar to buying a new wide-body jet, CEO Richard Anderson, said that the refinery would cut the airline’s fuel costs by $300 million a year.
“Acquiring the Trainer refinery is an innovative approach to managing our largest expense,” he said.