Delta Air Lines spent more than $4 billion on fuel in the second quarter as the war in Iran sent energy prices soaring. The airline's wholly owned oil refinery in Trainer, Pennsylvania, helped recoup some of those costs, with its performance surging 83% to bring year-to-date revenue to $2.09 billion, essentially offsetting $0.11 per gallon of jet fuel cost. Jet fuel is typically one of the largest operating expenses for airlines, and US Gulf Coast jet fuel swaps remain roughly 60% above where they started the year. Delta recognized a $2 billion increase in fuel expenses for the quarter compared to the same period a year ago. The refinery, purchased from ConocoPhillips in 2012, provides Delta with 200,000 barrels per day of jet fuel through in-house production or swaps, approximately 75% of its consumption, and has served as a hedge against oil price spikes.
Delta Air Lines IncDelta's refinery revenue surged 83% to $2.09 billion, offsetting higher jet fuel costs and acting as a hedge.
American Airlines GroupRising jet fuel costs increase operating expenses for American Airlines, similar to Delta.
ConocoPhillips